REALWorld Law

Sale and purchase

Ownership restrictions

Are there any legal restrictions on foreign investors acquiring real estate?

Germany

Germany

In general, foreign investors are not subject to any restrictions other than those imposed on resident German investors.

However, the government has the power to impose a restriction on the acquisition of property in Germany by foreign corporate investors, requiring them to obtain a public permit, where German companies are subject to similar restrictions in the investor's own country. However, no such restrictions are currently in place and we are not aware of any intention to introduce them. In any event, these restrictions would not apply to investors from countries within the European Union.

The Foreign Trade and Payments Ordinance (Außenwirtschaftsverordnung – AWV) has been amended and its scope now includes company asset deals. According to Sec. 55 (1a) of the Foreign Trade and Payments Ordinance, the Federal Ministry of Economic Affairs and Energy can assess whether there will be a likely effect on the public order or security, for example, of the Federal Republic of Germany in case of the acquisition of a definable part of the operation of a domestic company (no. 1) or all the essential operating equipment of a domestic company or of a definable part of the operation of a domestic company which is needed to maintain the operation of the company or of a definable part of the operation (no. 2).