{"id":1272,"date":"2026-04-07T22:59:28","date_gmt":"2026-04-07T20:59:28","guid":{"rendered":"https:\/\/www.erlburg.law\/?p=1272"},"modified":"2026-09-12T19:26:20","modified_gmt":"2026-09-12T17:26:20","slug":"buying-real-estate-in-germany-purchase-by-several-people","status":"publish","type":"post","link":"https:\/\/www.erlburg.law\/en\/buying-real-estate-in-germany-purchase-by-several-people","title":{"rendered":"Buying Real Estate in Germany \u2013 Acquisition by several People"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Buying real estate is usually one of the most important decisions in one\u2019s live. If two or more people purchase property together, special questions arise under German Law, and a number of special issues need to be considered. This applies regardless of the personal relationship between the buyers, e.g. whether they are married or related, although the consequences vary. Before purchasing property, the purchasers should inform themselves about the possible forms of acquisition and choose the most suitable form for them.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">1. The suitable acquisition form<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">When a property is acquired by several people, there are various options with regard to the legal structure:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Co-ownership:&nbsp;<\/strong>In most cases, the property is bought as co-owners. In this variant (in German called \u201cMiteigentum\u201d or \u201cBruchteilseigentum\u201d), it is determined at the time of the purchase who acquires which share of the property (e.g. acquisition of 1\/2 each or of 1\/3 for one person and 2\/3 for the 2<sup>nd<\/sup>&nbsp;person). Each co-ownership share is legally independent and can therefore be sold or inherited independently. The other co-owner(s) also have no automatic rights of first refusal or other rights for the other co-ownership shares, unless this has been agreed separately. If one of the co-owners wishes to acquire all or further parts of the property from the other co-owners, this is of course possible. However, this requires a new notarised deed, which will incur costs. In addition, real estate transfer tax (\u201cGrunderwerbsteuer\u201d) may be payable again (tax exceptions may apply under certain circumstances, for example, when the acquisition take place between spouses or certain relatives).<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Acquisition via a company structure<\/strong>: Alternatively, one can consider acquiring real estate as a shareholder via a company structure (e.g. GbR, oHG, KG, GmbH). The most common variant for the acquisition of real estate for private use is the acquisition via a partnership under civil law (\u201cGesellschaft b\u00fcrgerlichen Rechts\u201d &#8211; GbR). The acquisition of property via a GbR requires the shareholders to conclude an agreement (\u201cGesellschaftsvertrag\u201d) prior to the buying process. This establishes the GbR and at the same time governs the internal relationship between the shareholders. This shareholder agreement can, for example, regulate pre-emption rights, takeover rights, the inheritance as well as the valuation of the real estate when it is sold. This can avoid disputes if the shareholders should part ways at a later date. The agreement also stipulates the proportion of the shares in the GbR. Please note, that founding a GbR can lead to additional notary fees.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The choice between these acquisition forms will depend on the relationship between the buyers and their individual goals and needs.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">2. Financing the Property Purchase<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Financing is another important issue when several people buy real estate. There are again various options:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Joint financing:<\/strong>&nbsp;All purchasers may take out a loan together towards the bank. The buyers will then each be liable for the entire repayment to the bank. The regular repayment of the loan will usually be made in line with the share in the property or the shareholder share (when the real estate was acquired via a company structure). Otherwise tax issue may arise.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Individual financing shares:<\/strong>&nbsp;Sometimes the property purchase is also realised through different financing shares of the buyers. This is the case, for example, if one person contributes a larger share of the purchase price or does not have to finance their share via a loan due to existing funds. Again, it is important to check whether a tax issue may arise due to different financing shares, e.g. because the financing share conflicts with the co-ownership share in the property (Gift Tax \u2013 \u201cSchenkungsteuer\u201d). In addition, the purchasers should clarify the valuation\/consequences of the different financing shares among themselves.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">3. The Notarised Property Agreement<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">As with any property purchase under German Law, a&nbsp;<strong>notarised deed<\/strong>&nbsp;is required for the real estate purchase itself. The notary drafts the contract and informs the parties of their rights and obligations. In addition, the purchasers must sign the purchase agreement. It is advisable to clarify the specific issues of the acquisition with the other buyers well ahead before the notarisation. This applies with regard to the co-ownership share when acquiring as a co-owner as well as the possible founding of corporation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Special Note:\u00a0Whenever real estate is acquired by more than one person, it should be considered what happens in the event of <strong>inheritance<\/strong> and whether there is a need for further action, e.g. via a will\/contract of inheritance and\/or a special clause in the shareholder agreement. This applies in particular to <strong>acquisitions by partners in a non-marital partnership<\/strong>. There is no reciprocal statutory right of inheritance here. The problem also arises <strong>when married couples acquire real estate<\/strong> but is less problematic due to the spouse&#8217;s statutory inheritance rights. However, if children or other potentially entitled heirs are to be completely excluded from the property, it makes sense to seek legal advice in these cases as well.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">4. Tax Aspects<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The acquisition of a property also has tax implications. The following aspects, among others, should be taken into account when several people purchase a property:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Real estate transfer tax (\u201cGrunderwerbsteuer\u201d):<\/strong>&nbsp;This tax varies depending on the federal state of the real estate and is payable as a percentage of the purchase price of the property. If several people buy together, the tax is levied on the parties involved in proportion to their share of the purchase.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Gift tax (\u201cSchenkungsteuer\u201d):<\/strong>&nbsp;If purchasers obtain all or part of the shares in the property as a gift, this can lead to gift tax. The same applies if the purchasers&#8217; financing shares do not correspond to their shares in the property. One should consult a tax advisor at an early stage in any of these cases.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion: Planning is crucial <\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The purchase of real estate by several people requires careful planning. All parties involved should be aware of their rights and obligations and make appropriate contractual arrangements. An experienced notary can help to clarify the legal aspects, and a tax advisor will ensure that the tax requirements are taken into account.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Buying real estate is usually one of the most important decisions in one\u2019s live. If two or more people purchase property together, special questions arise under German Law, and a number of special issues need to be considered. This applies\u2026<\/p>\n","protected":false},"author":2,"featured_media":1565,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[42,40,43,39,41],"tags":[],"class_list":["post-1272","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate","category-focus-topics","category-marriage-partnership-family","category-notary","category-real-estate"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Buying Real Estate in Germany \u2013 Acquisition by several People<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.erlburg.law\/en\/buying-real-estate-in-germany-purchase-by-several-people\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Buying Real Estate in Germany \u2013 Acquisition by several People\" \/>\n<meta property=\"og:description\" content=\"Buying real estate is usually one of the most important decisions in one\u2019s live. 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