Returning to Germany: moving into, buying and financing a home

What do returnees to Germany need to know about property?

Anyone who wants to move back into their own let flat needs an own-use termination (Eigenbedarfskündigung, § 573 (2) no. 2 BGB): in writing, with concrete reasons and a notice period of three, six or nine months depending on how long the tenancy has run. Anyone buying instead usually runs into a financing issue, because recent German payslips and a current SCHUFA credit history are missing. In my experience it pays to sort out the registered address, a German current account and health insurance first, and only then approach a bank.

97,000

Departures of German nationals in 2025, after around 81,000 in 2024 (Federal Statistical Office)

3 to 9 months

Statutory notice period for own use, depending on the length of the tenancy (§ 573c BGB)

5.5%

Real estate transfer tax in Saxony on the purchase price, on top of notary and land register

Why returnees are a special case

The heart of the problem is a gap in your German record. Banks, landlords and insurers work with data traces: registered address, payslips, account turnover, SCHUFA. Anyone who has lived in Singapore, Zurich or Lisbon for five years has left almost no traces in Germany during that time.

Buyers, not sellers

Returnees arrive with capital and an intention to buy, not with a selling mandate. That is exactly why they find hardly any content that matches their situation.

A gap in the data trail

Formally you are a German citizen with full rights. In the lending process you are an applicant with a thin data record, because the processes are built for the standard case.

Short lead time

A return is often decided with only a few months' notice, because one contract ends or another begins. Get the order of steps wrong and you lose weeks.

Two building sites at once

Residence, account, insurance, schooling and financing all run in parallel, often across two time zones. That is the real stress factor, not the purchase price.

Moving back into your own let property

Many emigrants do not sell their flat but let it out. On return that turns into a tenancy law task, because a tenancy does not end simply because the owner wants to move back in. The route is the own-use termination (Eigenbedarfskündigung, § 573 (2) no. 2 BGB).

Written form and duty to give reasons

The termination must be in writing, name the person for whom the need exists and set out the reason concretely. A sentence such as "I need the flat myself" is not sufficient under case law.

Usually well presentable for returnees

The end of the stay abroad on a fixed date, a new place of work in or around Dresden, no other residence in Germany: in substance that is usually a workable case.

Objection under the hardship clause

The tenant can object under the hardship clause (Sozialklausel, § 574 BGB), for instance on grounds of advanced age, illness or a lack of replacement housing. The court then weighs both interests.

Realistic timeline

Allow six to twelve months between decision and move-in. The period only starts on valid service, and the termination must arrive by the third working day of a month for that month to count.

Notice periods for own use, by length of tenancy

Length of tenancy	Notice period	What that means in practice
Up to 5 years	3 months	Served by the 3rd working day in January means moving out at the end of April
From 5 years	6 months	Half a year of lead time, an interim solution is usually needed
From 8 years	9 months	Almost a year, plus possible extension through an objection

This order works fastest in practice. Each step hangs on the previous one, which is why it pays not to start with the financing.

Registered address in Germany

Foundation

Without registration, account, insurance and loan application all stall. A transitional address with family counts too, as long as it is properly registered.

German current account

Possible before returning

Ideally opened while still abroad. It is the precondition for salary payments, the purchase price and communication with the notary.

Sort out health insurance

Proof required

Employers and authorities require proof. Anyone coming back from a country without a social security agreement should clarify admission early.

Check your tax status

§ 8 AO

Unlimited tax liability begins when you re-establish residence under § 8 AO, that is on the day you keep and use a dwelling. The exact date can make a difference, and your tax adviser works that through.

Approach a lender

Order matters

Only now, with a registered address, an account and a document pack. Applications without that basis often end in a rejection that resurfaces later.

Purchase and notary appointment

Last

Only proceed to notarisation with a solid mortgage offer. The draft purchase contract must be with you two weeks beforehand.

Tax note: Non-binding guidance, without warranty – not a substitute for tax advice.

Buying from abroad, before you are back

This works, and I support it regularly. Three points decide whether it runs smoothly.

Viewing by video

First viewings run by video tour. I additionally check damp, the noise situation and the residents' community, because a camera does not show that. Before notarisation I recommend a second viewing on site by someone you trust.

Power of attorney for the notary appointment

A notarised power of attorney can be granted at the German consulate or before a notary in your host country with an apostille and translation. What exactly it must cover is for the notarising notary to discuss with you. The points here are drafting input for that conversation, not a finished document.

Incidental purchase costs in Saxony

Real estate transfer tax in Saxony is 5.5 per cent of the purchase price, plus notary and land register and, where applicable, agent's commission. That sum must come from equity and be in a German account in good time.

Calculate real estate transfer tax in Saxony

The core message for returnees

Basics first, then the bank

Registered address, current account and health insurance decide how your mortgage enquiry is read. Reverse that order and you collect avoidable rejections.

Time is your scarcest resource

Own use requires three to nine months' notice, and financing without a German record takes several attempts. Starting both in parallel is more realistic than in sequence.

The old property is not a must

If layout, location or condition no longer match your life, selling and buying anew is the calmer route. The proceeds land as equity exactly where returnees stand weakest.

What I see with returnees again and again: they do not underestimate the purchase price, they underestimate the order of steps. Put the mortgage enquiry before the registered address and you lose two months that are missing at the end, on the move-in date.

Calvin Linke, Immobilienpartner Sachsen

When the old property no longer fits

An honest closing point. Not every return ends in the old flat, and that is not a failure.

A changed life situation

After five years abroad the family is often larger or smaller. A two-room flat that was perfect before you left will not carry a family of four.

Maintenance backlog

Let properties age without an owner on site. Heating, windows and bathroom often come due at once on return, and that hits a budget meant for the move.

The wrong district

The new place of work is in northern Dresden, the flat in the south. The school run, commuting time and surroundings matter more day to day than the floor area.

The calmer route

Selling and then buying anew spares you the own-use termination with its risk of objection. Which route carries better in your case can only be decided with figures.

Request a valuation before you return

Coming back to Dresden and unsure whether the old property still works or a new purchase makes more sense? I look at both sides: today's value of your existing property and the market for your target home. Free of charge and without a selling mandate.

Request a valuation

Managing Director & Property Adviser

Calvin Linke

Dresden local expert — with many years of experience supporting property acquisitions and brokerage in the Elbe valley.

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Can I move back into my own let flat after returning?

Yes, this is the classic case of an own-use termination (Eigenbedarfskündigung, § 573 (2) no. 2 BGB). You must set out in writing and in concrete terms why you need the flat yourself, for example your return from abroad on a fixed date and the end of your previous housing situation. The notice period is three, six or nine months depending on how long the tenancy has run (§ 573c BGB). The tenant can object under the hardship clause (Sozialklausel, § 574 BGB), so allow a generous time buffer. Whether your reasoning holds in your individual case is for a solicitor specialising in tenancy law to assess.

How long does it take before I can move back into my own flat?

Realistically, allow six to twelve months between the decision and moving in. The statutory period of three to nine months only starts once the termination has been validly served, and it must reach the tenant by the third working day of a month for that month to count. If an objection under § 574 BGB or a court clarification follows, the timeline extends considerably. Anyone returning from abroad should therefore plan an interim housing solution for the first few months.

Can I get a mortgage as a returnee without German payslips?

It is possible, but the requirements are higher than for a buyer employed in Germany throughout. Banks assess foreign income more cautiously, especially when it is not paid in euros, and often ask for more equity plus additional evidence such as an employment contract, tax assessments from the destination country and bank statements. It becomes markedly easier with a signed German employment contract, even if the job only starts in a few weeks. Approach several banks, because the treatment of foreign income varies widely.

What happens to my SCHUFA score after years abroad?

Your score does not disappear, but it loses explanatory power when no German contract data has been reported for years. Banks then see a thin data record and assess it cautiously. A German current account, a German registered address and a running mobile phone or insurance contract rebuild that history. Request your free copy of your data under Art. 15 GDPR early on and have outdated entries corrected before the bank looks at them.

Can I buy a property before I am back in Germany?

Yes. In practice viewings work well by video tour, and for the notary appointment you can grant a notarised power of attorney, either at the German consulate or before a notary in your host country with an apostille and translation. The draft purchase contract is sent to you in advance, and the statutory two-week period before notarisation also applies from abroad. What matters is a German account for the purchase price and incidental costs, plus a confirmed mortgage offer before you commit contractually.

From when am I liable for tax in Germany again after returning?

Unlimited tax liability is tied to residence (Wohnsitz, § 8 AO), meaning a dwelling you keep and actually use, or to habitual abode (gewöhnlicher Aufenthalt, § 9 AO). It begins on the day that condition is met again, not at the turn of the year. For the year of return this often creates a split year with income from two states and a possible progression proviso (Progressionsvorbehalt). Your tax adviser should work through this point before you return, because the exact date of return can make a difference.