Selling a property from abroad: power of attorney, remote handling & tax liability

It sounds more complicated than it is: selling a German property from abroad is entirely possible. What it takes is the right preparation, the right power of attorney, and an agent who handles the coordination on the ground. In this guide I share the most important tips from my experience with clients who handled their sale from Spain, Portugal, the USA or Australia.

Yes, it works — but not without preparation

The most common mistake: clients wait until they are already abroad and then try to organise everything at short notice. That costs time, nerves and sometimes money. Those who instead set the key course before moving away can steer the entire sales process remotely — with no compromise on the result.

What works without problems remotely:

• Granting the agency mandate and supporting the marketing
• Purchase-price negotiations by e-mail, phone and video call
• Having the draft purchase contract reviewed
• Signing the purchase contract (by power of attorney)
• Receiving the purchase price and the transfer of ownership

What requires or is made easier by personal presence:

• Granting the power of attorney (once, at the notary or consulate)
• Viewings (the agent can handle them, but an owner-led viewing comes across better)
• The handover of keys (can be done by an authorised representative or the agent)

The notarised power of attorney — the foundation

Nothing moves without it: the notarised power of attorney enables a trusted person in Germany to sign the purchase contract on your behalf. All other steps build on this.

What the power of attorney must contain:

• Authority to conclude and sign the purchase contract
• Consent to the priority notice and the transfer of ownership in the land register
• Authority to receive the purchase price
• Authority to make all necessary declarations to the notary and the land registry
• Where applicable, release from § 181 BGB (self-dealing), if the authorised representative could themselves be the buyer

Three routes to a notarised power of attorney:

1. At a German notary before moving away (recommended): the simplest solution. Notarisation costs 50–200 € depending on the property value. The power of attorney is valid indefinitely — as long as you don't revoke it.

2. At the German consulate abroad: possible in many countries. Waiting times for appointments can be long (4–8 weeks), and fees vary by consulate.

3. At a foreign notary with an apostille: technically possible, but involved: the document needs an apostille from the relevant authority and must be translated into German by a sworn translator. This often takes 2–4 weeks and costs 200–500 €. Only sensible if the first two routes don't work.

My urgent advice: grant the power of attorney in Germany before you move away. That saves time, costs and stress.

What you absolutely must take care of before moving away

I recommend that my clients who are planning to emigrate keep a clear list of priorities. These things must be done before you board the plane:

Priority 1 — power of attorney: Have the notarised power of attorney for a trusted person certified. No shortcuts, no "we'll do that later from abroad".

Priority 2 — keep a German bank account open: Keep at least one German account active. The notary transfers the purchase price to the IBAN stated in the purchase contract. Many foreign accounts won't accept large transfers from Germany without involved verification processes.

Priority 3 — engage an agent (or at least select one): Those who engage the agent before moving away have more control. Joint viewings are possible, and the brochure can be coordinated together.

Priority 4 — assemble the documents: Land register extract (no older than 3 months), energy certificate, building plans, building permits, incidental-costs statements — everything needed for the sale should be gathered on the spot. From abroad you have no quick access to German authorities.

Priority 5 — consult a tax adviser: Check the speculation-tax deadline, clarify the owner-occupation exemption, and understand the obligation to file a tax return after moving away. Better once too early than too late.

Viewings and negotiations from afar

Viewing a house without being there — that sounds unusual, but in practice it works well. As your agent, I take on:

• Coordinating and conducting all viewing appointments with prospects
• Passing on feedback after each viewing directly to you
• Arranging video calls with particularly serious prospective buyers
• Conducting purchase-price negotiations and coordinating them with you

What I need from my clients abroad: reachability at sensible times (mind the time-zone difference), clear price expectations, and a willingness to respond quickly to serious offers.

A practical tip: define a target price and a pain threshold with your agent in advance. That way, negotiations can be conducted even without lengthy back-and-forth — which speeds up the process considerably.

German bank account: why it is essential

Most people underestimate this: the German account is the critical point in a remote sale.

• The notary transfers the purchase price (often several hundred thousand euros) to an account you name
• Many foreign banks treat such incoming sums as suspicious and freeze the account or demand extensive proof (anti-money-laundering law)
• Some banks have daily transfer limits that are too low for a property purchase price

What you should do:

1. Keep a German account open — even if you no longer use it daily
2. Inform your German bank in advance about the expected incoming purchase price (amount, period, origin)
3. Have proof of the purchase price (the purchase contract) ready — the bank will ask

On the currency exchange: if you live in a country without the euro, you have to exchange the purchase price. Timing can make a difference of thousands of euros here. Don't use a standard bank transfer with a poor rate; use specialist foreign-exchange providers (e.g. Wise, OFX). Find out in advance about capital controls in the destination country — some countries restrict the import of large sums of money.

Tax liability: Germany doesn't forget you

A common misconception: that tax liability on your German property ends when you move away. That is wrong.

Through limited tax liability (§ 49 EStG), Germany retains the right to tax German real property. That means:

• § 23 EStG (speculation tax) applies regardless of where you live. The 10-year period and the owner-occupation exemption apply just as they do for residents.
• You must file a German income tax return for the year of the property sale — even if you live abroad.
• The sale profit is declared in Annex SO (other income).

What that means in practice: engage a tax adviser based in Germany. They can handle the return entirely digitally for you. The costs are manageable (300–800 €) but spare you trouble with the tax office and deadlines. Whether your sale falls under speculation tax, check in advance with the speculation tax calculator.

A realistic timeline: how long does it really take?

Based on my experience with remote sales:

Phase 1 — preparation (before moving away): 4–8 weeks Power of attorney, gathering documents, engaging an agent, creating the brochure.

Phase 2 — marketing (often from abroad): 6–12 weeks Viewings, purchase-price negotiations, a serious buyer found.

Phase 3 — purchase contract & notary: 3–6 weeks Draft purchase contract, coordination, notary appointment with the authorised representative.

Phase 4 — completion: 4–8 weeks Priority notice, purchase-price payment, transfer of ownership, handover of keys.

Total: 4–6 months is realistic. Anyone under time pressure (e.g. with a move already planned) should start the preparation early — ideally 3–6 months before the planned move away.

Common mistakes in a remote sale

Mistake 1: granting the power of attorney too late or too narrowly A power of attorney that doesn't expressly include receipt of the purchase price is not enough. Check the exact wording carefully.

Mistake 2: closing the German account Anyone who closes their German account before the purchase price has arrived creates a serious problem for themselves. Keep it open for at least 6 months after the notary appointment.

Mistake 3: forgetting the tax deadline The deadline for filing the income tax return applies to non-residents too. Missed deadlines mean late-payment surcharges. Engage a tax adviser early.

Mistake 4: underestimating the time zone Prospective buyers often want a quick answer. If you have a 6–9 hour time difference, every reply is delayed by half a day. Clarify in advance with your agent how they may make decisions in your absence.

Mistake 5: setting the purchase price too high because of the currency effect If the euro is weak against your new home currency, a high purchase price looks tempting. But an inflated price lengthens the marketing time — and in the end costs you more in rent or living expenses abroad.

Checklist and further information

For the complete overview — what to do and when — I recommend our free checklist:

→ Download the checklist: selling a property when emigrating

If you own shares in a GmbH, be sure to also read the guide to exit taxation:

→ Exit taxation under § 6 AStG explained

For the complete overview — tax, timing and process when selling a property in connection with emigration:

→ Selling a house when emigrating — all aspects at a glance