Buying Swiss Real Estate in Germany Without Equity: The Complete Guide
While in Switzerland, 25% to 35% equity is usually required for every real estate purchase, the German market offers Swiss investors entirely new opportunities. German banks provide financing of up to 100% of the purchase price - an option that is practically unthinkable in Switzerland.
For Swiss individuals with stable incomes, this represents an attractive opportunity to invest in the German real estate market with fewer repayment regulations. The lower property prices in Germany, combined with flexible financing options, create ideal conditions for high-yield investments.
This article will guide you step by step on how to successfully acquire real estate in Germany without equity as a Swiss investor. You will learn everything about legal requirements, financing options, tax advantages, and practical steps for implementation.
Full financing for Swiss investors
German banks are significantly more flexible than their Swiss counterparts when it comes to financing real estate purchases. While Swiss institutions are strictly bound to the 20% equity rule, German banks can make individual decisions and regularly offer full financing.
Financing options at a glance
German banks offer Swiss investors the following financing models:
80% financing80% of the purchase price is financed, the buyer bears the ancillary costs
90% financing90% of the purchase price is financed, the buyer bears the ancillary costs
100% financingThe entire purchase price is financed, the buyer bears the ancillary costs
Why German banks are more flexible
Compared to Swiss institutions, German banks have several advantages:
No legal equity ratioGerman banks can decide on financing individually
Experience with foreignersMany German banks have specialized departments for foreign clients
Competitive pressureThe German market is more competitive, leading to more flexible conditions
Swiss creditworthinessSwiss individuals are considered particularly reliable customers
The interest rates for full financing are typically 0.5% to 1% above the standard conditions. With current market interest rates of about 3.5% for standard financing, you will pay between 4% and 4.5% for full financing.
Legal foundations for Swiss property buyers
As a Swiss citizen, you enjoy extensive rights when purchasing real estate in Germany. There are virtually no restrictions that could hinder your investment plans.
No residence or domicile requirement
Unlike other countries, Swiss citizens do not need special permits for property purchases in Germany:
No residence permit required
No German residence necessary
Unlimited number of properties can be acquired
Equal legal treatment as German citizens
Notarial processing ensures security
The purchase of real estate in Germany is conducted exclusively through a German notary, which provides the highest legal security:
Purchase contract reviewThe notary thoroughly examines all contractual clauses
Land register reviewEnsuring encumbrance-free transfer
Trustee processingProtection against fraud through fiduciary purchase price processing
MultilingualismMany notaries near the borders speak fluent German and French
The entire process from contract conclusion to land register entry usually takes 4 to 8 weeks and is conducted entirely according to German law.
Financing partners for Swiss clients
Not all German banks are equally willing to finance foreign clients. However, the following institutions have proven experience with Swiss financing:
Regional institutions with Swiss experience:
Savings banks in Baden-Württemberg and Bavaria
Cooperative banks in Southern Germany
PSD Bank Munich
Munich Mortgage Bank
Approximately 15 to 20 German banks actively offer full financing for Swiss clients. You will receive the best conditions by making parallel inquiries at multiple institutions, and we are happy to assist you with this.
Attractive locations and types of properties
The German real estate market offers Swiss investors significantly lower prices while simultaneously providing attractive returns. Locations with a stable economic structure and growing population are particularly interesting.
Top investment locations for Swiss investors
MunichThe Bavarian capital impresses with high quality of life and strong economic power
Condos starting from 400,000 euros
Gross rental yields of 3-5.5%
High demand from international companies and universities
Stable value development despite higher entry prices
Munich is one of the most sought-after real estate locations in Germany. Despite the relatively high prices, the city offers secure long-term capital investments due to its economic strength and attractive infrastructure. For Swiss investors, Munich is particularly interesting because of its proximity to Switzerland and good transport connections.
Berlin: The capital still offers a moderate price level with high demand
Condominiums starting from 350,000 euros
: Gross rental yields of 4-6%
: Strong population influx
Frankfurt am Main: Financial metropolis with an international flair
: Condominiums starting from 350,000 euros
: Gross rental yields of 3.5-5%
: High demand from banks, companies, and international professionals
: Excellent transport connections and infrastructure
Berlin: The capital still offers a moderate price level with high demand
: Condominiums starting from 350,000 euros
Gross rental yields of 4-6%
Strong population influx
AugsburgHistorical city with a stable economy
Condos starting from 250,000 euros
Solid rental demand from universities and industry
Good transport connections to Switzerland
Focus on rented properties
For Swiss individuals looking to purchase a property in Germany without equity, already rented apartments are particularly attractive:
Immediate rental incomeDirect income for debt servicing
Proven rental viabilityMarketable rents already established
Calculable returnsReliable basis for financing plan
Lower vacancy riskExisting rental agreements provide security
Especially at greater distances, reliable management is crucial. If you are looking for professionally managed investment properties, we are happy to assist you.
Purchase ancillary costs
The purchase ancillary costs amount to 5.5% to 8.5% of the purchase price, depending on the federal state. Typically, a broker's commission is also incurred upon purchase. When acquiring through CDL Immobilien, the broker's fee is waived.
Breakdown of ancillary costs
Property transfer tax (depending on the federal state):
Bavaria: 3.5%
Saxony: 3.5%
Berlin: 6.0%
North Rhine-Westphalia: 6.5%
Additional ancillary costs:
Notary fees: 1.5% of the purchase price
Land registry fees: 0.5% of the purchase price
Broker:
Brokerage fee: 3.57% to 7.14% (usually split between buyer and seller)
For a property price of 400,000 Euros in Munich, the following costs arise:
Property transfer tax: 14,000 Euros (3.5%)
Notary: 6,000 Euros
Land registry: 2,000 Euros
Broker: 14,280 Euros (3.57%, waived when purchasing through CDL Immobilien)
Total additional costs: 36,280 Euros (22,280 Euros without brokerage fee)
Tax advantages of equity-preserving financing
Equity-preserving financing of a property in Germany offers Swiss investors significant tax advantages. The higher the proportion of debt capital, the greater the tax deduction possibilities.
Deductible costs in Germany
For rented properties, you can claim the following costs for tax purposes:
Annual depreciation (AfA):
2% of the building value annually over 50 years (more possible through optimizations)
For a building value of 250,000 Euros: 5,000 Euros annual depreciation
Immediately deductible costs:
Complete loan interest
Property management costs
Maintenance and repairs
Insurance
Preservation expenses (for renovation or refurbishment)
Property tax
Tax calculation example
Property: Apartment for 300,000 euros
Financing: 300,000 euros
Loan interest: 13,500 euros/year
Rental income: 14,400 euros/year
Depreciation: 5,000 euros/year
Tax loss in Germany:
Rental income: +15,400 euros
Interest: -13,500 euros,
Depreciation: -5,000 Euros
= Loss of 3,100 Euros
This loss reduces your tax burden in Germany and can be carried forward.
Utilize double taxation agreements
The double taxation agreement between Switzerland and Germany prevents double taxation:
Rental income is taxed in Germany
In Switzerland, German taxes are credited
Progression reservation can influence the Swiss tax rate
Allowances can be optimally utilized
Tax obligations in Germany and Switzerland
As a Swiss owner of a property in Germany, you have tax obligations to consider in both Germany and Switzerland.
Tax obligations in Germany
Annual income tax return:
Submission by July 31 of the following year
Proof of all rental income and deductible expenses
In case of losses: Loss carryforward for future years
Value-added tax only for commercial rentals
Property tax:
Annual payment to the municipality
Assessment basis: Unit value of the property
Typically 0.1% to 0.3% of the market value
Reporting obligations in Switzerland
Wealth tax declaration:
Declare property as foreign assets
Valuation at market value
Debts can be offset
Income tax declaration:
German rental income is subject to reporting
Credit for taxes paid in Germany
Progression reservation can increase or decrease the Swiss tax rate
It is advisable to consult with tax advisors in both countries to explore all optimization opportunities.
Risks and Success Strategies with Low Equity Investment
Buying a property with little equity carries specific risks that Swiss investors should be aware of and manage.
Main Risks of Full Financing
Higher monthly burden:
With a loan amount of 220,000 euros and 4.5% interest: 825 euros monthly interest burden
Additionally, repayment of at least 1% = another 183 euros
Total burden before income: Over 1,000 euros monthly
Dependence on rental income:
With vacancies, no income for loan servicing
Rental defaults impact liquidity (Good management necessary)
Plan for maintenance costs
Strategies for Risk Minimization
Optimize location selection:
Only choose locations with stable demand
University cities have stable rental demand
Financial security:
At least 6 months' rent as a reserve
Legal protection insurance for rental disputes
Professional management:
Commission property management for ongoing support
Rental management for smooth tenant transitions
Successful property selection
The right property selection is crucial for investment success. The following criteria should be considered:
Rental yield:
At least 4.5% gross rental yield (before tax) for a good cash flow situation
With 4.5% loan interest plus repayment, at least 5.5% is needed for coverage
Property condition:
Year of construction after 1960 for moderate maintenance costs
No major renovations required in the next 5 years
Binding warranty commitment in the notarial purchase agreement
Location factors:
Maximum 30 minutes to a larger employment center
Public transport connections available
Shopping facilities and medical care nearby
Successful valuation methods
Rental yield:
Purchase price should be in good proportion to the annual cold rent ->Calculating rental yield
Comparative value method:
Check prices of similar properties (same concept) in the region
Analyze the development of the last 5 years
Practical approach and financing application
The successful purchase of a property in Germany requires a structured approach and careful preparation.
Collect required documents
Income verification:
- Pay slips from the last 6 months
- Employment contract or employer confirmation
- Tax returns from the last 2 years
- For self-employed individuals: BWA and annual financial statements
Asset verification:
- Bank statements from the last 3 months
- Portfolio statements and insurance policies
- Real estate ownership in Switzerland
- Debts and ongoing obligations
Strategically submit financing requests
Parallel inquiries with multiple banks:
- Inquire with 3-5 banks simultaneously
- No more than 5 to limit SCHUFA impact
- Submit condition inquiries instead of loan applications
Utilize professional support:
Engage financing intermediaries with Swiss experience
Choose German brokers with an international focus
Consult tax advisors in both countries
CDL Immobilienis happy to assist you with all these matters
Timeline for purchase processing
Weeks 1-2: Property search and viewing
Contact online portals and brokers
Schedule consultation appointments
Submit initial financing inquiries
Weeks 3-4: Purchase agreement and financing
Discuss purchase agreement with notary
Obtain financing commitment
Weeks 5-8: Notary appointment and execution
Notarization of the purchase agreement
Payment of the purchase price after land registry entry
Handover of the property and transfer of management
Checklist for the purchasing process
Before the viewing:
[] Clarify financing framework with the bank
[] Request property documents from the seller
[] Contact broker or seller
During the viewing:
[] Check the condition of the roof, facade, and heating
[] Review protocols
[] Verify energy certificate and floor plan
After the approval:
[] Have the draft purchase agreement reviewed
[] Final confirmation of financing
Management and Long-Term Strategy
As a Swiss remote owner of a property in Germany, you should establish a professional management structure from the very beginning.
Professional Property Management
Services of a good property management:
monthly rent income monitoring
billing of ancillary costs
commissioning small repairs
on-site tenant support
Costs of property management:
35-50 Euros per rented room monthly
These costs are fully tax-deductible and ensure professional support without your own time investment.
Planning Exit Strategies
Sale after 10 years:
After a holding period of 10 years, the sale is tax-free (also for Swiss buyers)
Value increases can be fully realized
Typical value increase: 2-6% annually
Portfolio development through refinancing:
After value increase, new financing based on higher valuation
Utilize released equity for additional properties
Build a diversified real estate portfolio
Long-term rental:
Inflation protection through regular rent adjustments
Inheritance to the next generation possible
As a Swiss citizen, you have the opportunity to build a high-yield real estate portfolio in Germany with minimal equity investment. The combination of lower prices, flexible financing, and tax advantages makes Germany an attractive investment destination.
The next step:Gather your documents, contact specialized real estate partners like us (CDL Immobilien).
With the right preparation, you can acquire your first property in Germany with little equity in just a few weeks.