Investing in Germany 

Many expats and foreign investors move to Germany or look to the country from abroad with the goal of making their money work harder. From savings accounts and pensions to property, stocks and business ventures, one things for sure – there’s plenty of options to consider, but tax implications and eligibility criteria may be very different from back home. 

We’re exploring the most popular ways to invest in Germany, how the system is regulated and the practical steps to think about before getting started.

Key takeaways: Investing in Germany for expats

• Get set up properly: Open a local bank account and secure your German tax ID to access investment platforms and products.
• Stick with trusted providers: Always choose BaFin-authorised banks, brokers, or fund managers to protect your money.
• Start small and diversify: Begin with savings plans or ETFs and spread investments across different assets to manage risk.
• Be mindful of taxes: Learn how the 25% flat investment tax works and use your 1,000 EUR annual allowance to reduce your bill.
• Transfer funds wisely: Use Wise for low-cost international transfers at the mid-market exchange rate when moving money to and from Germany.

Disclaimer: Tax rules and investment regulations can change, and personal circumstances may affect how they apply. Always check the latest guidance or seek professional advice before making investment decisions. 

Investment in Germany

As Europe’s largest economy and one of the world’s top exporters, Germany has long been a magnet for investors. It makes up nearly a quarter of the Eurozone’s GDP and holds a AAA credit rating, giving it a reputation for stability and security. From manufacturing giants to innovative startups, opportunities are backed by reliable infrastructure and strong regulation.

Common investment options in Germany include:

• Savings accounts – widely used by households, with some tax-protected options available
• Real estate – both residential and commercial property are popular long-term investments
• Business ventures – starting a company or investing in Germany’s Mittelstand firms
• Investment funds and ETFs – increasingly popular for those seeking diversified portfolios
• Pensions and insurance products – traditional ways Germans build financial security

Germany’s strengths include a skilled workforce, global trading power, and its thriving Mittelstand of small and medium-sized businesses. Unemployment remains fairly low at around 6.3% as of August 2025, but investors often face challenges such as complex bureaucracy, high labour costs and infrastructure in need of renewal.

Cautious saving is part of the national culture. German households often save more than 19% of their disposable income, one of the highest rates in Europe. Traditionally this money went into bank accounts or insurance products, but more people are now exploring funds, ETFs and property to secure better long-term returns.

After a few years of slower growth, forecasts are improving, and the OECD expects modest recovery in 2025, with the economy projected to grow by 1.2% in 2026. For expats and foreign investors, the country offers a safe and well-regulated environment, with steady opportunities for those willing to navigate the rules.

What to know before investing in Germany

Even if you’ve invested before, navigating the system in Germany can feel quite different. The paperwork and tax details don’t always match what you know from home, and if you’re brand new to investing, it can seem more confusing than ever. Sitting down with a qualified advisor can take the pressure off and give you the confidence to plan wisely.

Most banks and financial institutions in Germany have investment advisors you can book an appointment with. To make sure you’re in safe hands, check that they are authorised by BaFin (the Federal Financial Supervisory Authority). BaFin keeps public registers of licensed investment advisors and asset managers, which are easy to search online.

Here are a few things worth keeping in mind:

• Ask about fees upfront. Some advisors charge a fixed hourly rate, while others work on commission. Clear costs help you avoid surprises later.
• Use trusted directories. Alongside BaFin’s registers, local Chambers of Commerce (Industrie- und Handelskammer – IHK) often list advisors who are experienced in helping newcomers. Many will also offer services in English, but it’s worth checking before you book.
• Think about currency risk. Exchange rate changes can eat into your returns if your money is moving across borders. Wise lets you move funds between currencies at the mid-market rate, helping to reduce the hidden costs of transfers.

Savings account investments in Germany 

Germany’s savings account market has become more interesting lately. After years of very low or near-zero interest rates, some banks now offer better returns on fixed-term or “easy access” savings. But returns still depend heavily on term, bank, and balance.

Here are common types of savings accounts expats might consider:

• Instant-access / easy-access savings (Tagesgeldkonto): You can deposit and withdraw money freely. These accounts tend to offer lower interest but give you flexibility. Digital banks such as TF Bank offer rates that vary by membership or promotional period, currently 2.65% with monthly payouts.
• Fixed-term deposits (Festgeldkonto): Money is locked in for a set period (e.g. 1–12 months or longer), which often leads to higher interest rates. Most banks require a minimum deposit, starting at around 5,000 EUR and providers such as Consorsbank regularly advertise rates of around 3%.

What to watch out for

• Deposit protection: Savings in Germany are covered up to 100,000 EUR per depositor, per bank under the statutory Deposit Guarantee Scheme. 
• Interest rate environment: While fixed-term accounts can reach 2–3% or more depending on the provider, easy-access accounts usually stay lower once promotional periods end.
• Eligibility: Most savings accounts require a German address and tax ID, although some digital banks are more flexible with EU residents. Always check requirements before applying.
• Large balances: Negative interest rates are rare these days, but some banks apply caps on high-balance promotional rates or adjust terms once thresholds are exceeded.

Pension investments in Germany

Germany’s pension system has three pillars: a state pension that most workers pay into, occupational pensions offered via employers, and private pensions you set up yourself.

State pension

Employees and employers pay into the state system throughout working life. The total contribution rate is 18.6% of gross salary up to a yearly income of 96,600 EUR that’s usually split between employee and employer. 

• Retirement age & eligibility: The standard pension age is being raised to 67 by 2031 and applies to those born in 1964 or later. You generally need a minimum qualifying period of five years of contributions to draw an old-age pension. Early retirement may be possible (with reductions) after long insurance periods; very long careers can retire earlier with fewer or no reductions. 
• If you don’t reach 5 years: You can request a refund of contributions at regular pension age. 

If you’ve worked in multiple EU/EEA countries or Switzerland, periods can be totalized so you don’t lose entitlement, with each country paying its share when you reach its retirement age. 

Occupational pensions

On top of the state pension, many employers in Germany give their staff the chance to build extra retirement savings through a workplace scheme. These occupational pensions are a simple way to boost your future income.

You can choose to put part of your salary aside, and the government supports this with tax breaks. As of 2025, contributions up to 8 % of the pension insurance contribution assessment ceiling are tax-exempt. Of that amount, up to 4 % is also exempt from social security contributions. 

It’s a good idea to ask your HR department what kind of plan your company offers, whether they add contributions of their own, and how long you need to stay before the benefits are yours to keep.

Private pensions

Private pensions in Germany are voluntary, but they’re a popular way to close gaps left by the state and workplace systems. They give you more control over how much you save and the kind of benefits you’ll get later.

Two well-known options are:

• Riester pension (Riester-Rente): Designed for employees who pay into the state system, this plan comes with government allowances and tax relief. You’ll pay tax on the payouts in retirement, but the upfront benefits can make it attractive.
• Rürup pension (Basisrente): Often chosen by the self-employed or high earners, this plan allows large annual contributions with generous tax deductions. 

Many people also use investment savings plans such as ETFs or funds for their retirement pot. These don’t come with the same guarantees, but they can offer more flexibility and higher growth potential.

If you’re considering a private plan, compare the tax benefits and portability if you think you might move countries again.

Property investments in Germany

Germany has long been seen as a safe and stable place to buy property. From city apartments to family homes, the market is well regulated, and the buying process is clear. Every sale must go through a notary and be recorded in the land register (Grundbuch), which helps protect both buyers and sellers. Costs vary across the federal states, so it’s worth doing some homework before you start house-hunting.

Foreign ownership restrictions and eligibility

Foreigners can buy property in Germany on much the same terms as locals. You don’t need a residence permit to purchase, but owning a home doesn’t automatically give you the right to live in Germany. For most expats, the process is straightforward: find a property, sign the notarised contract and wait for your name to be entered in the Grundbuch.

• Financing as a foreign buyer: Banks will often lend to non-residents, but you may face stricter conditions, such as higher down payments or shorter repayment terms.
• Regional tax differences: The property transfer tax (Grunderwerbsteuer) is set at state level, so it ranges from about 3.5% in Bavaria to 6.5% in North Rhine-Westphalia. Notary and registration fees add another 1–2% on top.
• Same rules nationwide: Unlike in some countries, Germany doesn’t restrict foreign ownership by region. The main variations come from local taxes and market conditions rather than legal barriers.

Market conditions and pricing

Germany’s property market is showing signs of recovery after a quieter spell. Official data shows residential prices were up around 3.8% in early 2025. 

In fact, average prices now sit at around 11,500 EUR per m² in Munich, 7,200 EUR in Frankfurt, and just under 7,700 EUR in Berlin, while smaller hubs such as Leipzig remain more affordable at around 3,800 EUR per m². 

Several factors are shaping today’s conditions. A shortage of new homes keeps demand strong, with studies estimating hundreds of thousands of new apartments are needed each year but not yet being built. Financing is also becoming slightly easier after regulators eased some requirements in 2025, helping buyers access mortgages again.

For expats, the regional picture matters. Expect higher prices and tighter supply in major cities, while smaller towns may still offer better value. And if you’re moving funds from abroad, exchange rates can make a big difference on a purchase this size. Providers like Wise help by offering transfers at the mid-market rate with no hidden markups, so more of your money arrives in euros for your deposit or final payment.

Mortgage options and costs

Many major banks in Germany, including Deutsche Bank, Commerzbank DKB and Postbank offer mortgages to foreigners if they live and work in Germany. EU citizens usually have access to the same terms as locals, while non-EU buyers may face stricter conditions, such as higher deposits or shorter repayment periods.

Beyond the purchase price, you’ll need to budget for additional costs. Property transfer tax varies by state, from around 3.5% in Bavaria to 6.5% in Berlin and North Rhine-Westphalia. On top of this, notary and registration fees typically add 1.5–2%, and estate agent fees are often split between buyer and seller, totalling up to 7.14% including VAT. 

If you’re transferring funds from abroad, planning ahead matters. Wise helps by sending money into euros at the mid-market rate, so you avoid losing out on hidden exchange markups when paying deposits or final balances.

Key costs to expect when buying property in Germany:

• Property transfer tax: 3.5–6.5% depending on the state
• Notary and land registry fees: around 1.5–2%
• Estate agent fees: up to 7.14%, usually split with the seller

Insurance and protection requirements

Once you own a home in Germany, protecting it with the right insurance is just as important as choosing your mortgage. Some coverage is essential if you want peace of mind, and in some cases it will even be required by your lender.

• Building insurance (Wohngebäudeversicherung) is usually a condition of a mortgage. It protects the property itself, including the roof, walls and permanent fixtures against risks such as fire, lightning, storms or water damage.
• Home contents insurance (Hausratversicherung) covers what you keep inside, from furniture and appliances to valuables. It’s not mandatory but can save you from a major expense if something is stolen or damaged.
• Homeowner liability insurance (Haftpflicht für Hausbesitzer) is designed to covers costs if someone is injured on your property or if damage is caused by the building.

Well-known providers in Germany include Allianz, ERGO, Generali and Wüstenrot & Württembergische. Expats often turn to newer digital insurers such as Feather or Getsafe, which offer policies in English and simple online sign-up.

Before you commit, compare different policies – look at what’s included, the level of deductibles and any exclusions. Comparison platforms such as LiveInGermany or Expatica’s own insurance guides are good starting points, and many banks also offer insurance products when you take out a mortgage.

Investment funds in Germany

Investment funds are one of the most common ways to invest in Germany. Instead of picking individual stocks or bonds yourself, you join other investors in a shared portfolio. A fund manager looks after the investments, aiming to match the fund’s strategy, from steady bond incomes to chasing growth through equities. Risk levels vary widely, and a government bond fund is usually calmer, while a small-cap equity fund can be much more volatile.

Big names dominate the market, so you’ll be in good company. You’ll find a wide choice from large German houses such as DWS (Deutsche Bank’s asset manager), Union Investment (DZ Bank group), Deka (Sparkasse group), and Allianz Global Investors, alongside international providers like BlackRock/iShares and Vanguard. 

Every fund offered to the public in Germany must be authorised and supervised by BaFin, the Federal Financial Supervisory Authority, under the German Investment Code (KAGB). BaFin keeps a public register of approved UCITS and AIF funds, which lets investors check whether a product is legitimate before buying in. Sticking to funds listed there ensures you’re dealing with regulated providers that meet strict rules on transparency and investor protection.

Types of investment funds

• Exchange-traded funds (ETFs): Low-cost funds that track stock indices like the DAX or MSCI World. They’re easy to buy and sell on the stock exchange, which makes them popular with beginners.
• Equity funds: Focus on company shares for long-term growth. Returns can be higher, but so can volatility, so patience is key.
• Bond funds: Invest in government or corporate bonds. Offering more stability, the pay out regular dividends, though returns are often lower.
• Mixed funds: Blend shares and bonds in one portfolio to balance growth and safety.
• Hedge funds: Aimed at experienced investors, they pool wealth from accredited institutional investors. They’re private, unregistered, riskier and often come with higher fees, but the potential rewards can be much greater.

Before you take the plunge and invest yoursef, compare performance against costs to avoid fees eating into your returns. If you’re new to investing in Germany, talking to a qualified advisor can help you choose funds that match your goals and comfort when it comes to risk.

Investing in stocks and shares in Germany 

Buying stocks is one of the most direct ways to invest in Germany. Unlike funds, you choose individual companies and hold their shares, benefiting from dividends and potential price growth. The flip side is higher risk – markets go up and down, and without diversification, losses can hit harder. Thanks to online platforms and low-cost brokers, access has become easier than ever, even for newcomers.

Germany’s main exchange is the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse), one of the largest in the world. The leading index is the DAX 40, which tracks the top 40 blue-chip companies such as Siemens, Allianz, Deutsche Telekom, Mercedes Benz and SAP. Other indices like the MDAX and SDAX cover mid- and small-cap firms, giving investors a broader view of the market.

Popular shares among German investors often include household names like Volkswagen, Adidas, Bayer and BMW. Many expats also invest through ETFs that track the DAX or European indices as a simpler way to access the market.

Costs vary depending on the broker, but you can expect:

• Transaction fees: Usually a few euros per trade with online brokers.
• Account fees: Some banks charge monthly custody fees, while many online platforms waive them.
• Taxes: Capital gains are subject to Germany’s flat rate of 25%, plus solidarity surcharge and church tax if applicable.

Offshore investments in Germany

Some expats in Germany look beyond local products and consider offshore investments. These accounts or funds are usually set up outside Germany but allow you to manage assets across borders in multiple currencies. For many foreign residents, the advantage is flexibility. You can move money more easily if your career takes you elsewhere or if you need to support family back home.

Potential benefits include tax advantages in certain jurisdictions, a wider choice of international funds, and international services that are often harder to access through domestic banks. The rules can be complex, so it is important to remember that offshore investments must still be declared in Germany for tax purposes and professional advice is essential to stay compliant.

Ethical and sustainable investing in Germany

Interest in ethical and sustainable investing has grown quickly in Germany, as more people want their money to align with environmental and social goals. Investors are paying closer attention to ESG (Environmental, Social, and Governance) criteria when choosing funds, bonds, and companies.

Germany has been one of the leaders in the European green bond market. Since 2020, the federal government has issued Green German Federal Securities, also known as twin bonds. These match conventional government bonds in terms of maturity and yield, but the money raised is earmarked for climate and environmental projects. In 2022 alone, around 14.5 billion EUR was issued, supporting renewable energy, sustainable transport, and research into climate protection.

Examples of sustainable investment initiatives include:

• Green bonds: Federal government issues twin bonds to fund climate-related projects.
• Sustainable labels: The EU’s Sustainable Finance Disclosure Regulation (SFDR) applies in Germany, ensuring funds marketed as sustainable meet clear standards.
• Corporate initiatives: In 2025, more than 60 major firms joined the “Made for Germany” initiative, pledging around 631 billion EUR in investment by 2028.

Major financial institutions such as Deutsche Bank and Allianz also manage ESG-focused funds, while smaller providers specialise in impact investing. For investors, it’s important to review how funds are classified, since standards can differ between providers.

Germany’s approach makes it possible for expats and residents alike to take part in sustainable finance, combining long-term growth with the chance to support green and socially responsible projects.

Other types of investment in Germany

Bonds and government securities

Bonds remain one of the most stable ways to invest in Germany, particularly for those who prefer lower-risk options. Government bonds, often called Bunds, are backed by the federal government and considered among the safest assets in Europe, while corporate bonds offer a bit more yield in exchange for higher risk.

• German government bonds (Bunds): The 10-year Bund yield stood at around 2.74% in mid-September 2025. Shorter-term bonds usually pay less, while longer maturities may edge higher depending on market conditions.
• Corporate bonds: Investment-grade euro corporate bonds had an average yield-to-worst of 3.43% as of August 2024, according to the Bloomberg Euro Corporate Index. Yields vary depending on the company’s credit rating and the bond’s maturity.
• How they work: Investors receive fixed coupon payments and get their capital back at maturity. While they’re generally safe, prices can fluctuate if interest rates rise, so many people hold bonds until they mature to lock in their return.

Bonds are popular with both local and foreign investors looking for predictable income and security. For anyone new to the market, it’s worth comparing government versus corporate options and keeping an eye on European Central Bank interest rate changes, since these strongly influence bond yields.

Alternative investments

Beyond traditional markets, many investors in Germany also look to alternative assets. Gold and other precious metals are long-standing favourites, often seen as safe havens during economic uncertainty. Collectibles such as art and fine wine also attract niche investors, although these require expertise and patience.

The biggest growth story is cryptocurrency, with an estimated 4.9 million people, or 5.8% of the German population, currently owning cryptocurrency. Germany’s clear regulatory framework, overseen by BaFin, has helped boost trust, but volatility and scams remain risks. 

Life insurance and specialised products

Life insurance is not only a form of protection in Germany but also a traditional way to build long-term savings. Products like capital life insurance (Kapitallebensversicherung) and pension insurance (Rentenversicherung) combine coverage with an investment element, often providing guaranteed payouts or annuities at retirement. Many Germans still see these as a safe, predictable way to prepare for the future, even if returns are usually lower than other investments.

Specialised savings products also exist, such as Riester and Rürup pensions, which are tax-advantaged private retirement plans supported by the government. These vehicles remain popular with households looking for stability and tax benefits rather than high returns.

Tax on investments in Germany

If you live in Germany, you’re generally taxed on your worldwide investment income. Residents pay tax on worldwide investment income, while non-residents are only taxed on German-source income, such as dividends from German companies or rental income from a property in Germany. Double tax treaties can sometimes reduce what you owe, so it’s worth checking your personal situation carefully.

Capital gains and investment income taxation

Most capital income in Germany, such as dividends, interest, and gains from shares, is subject to a flat withholding tax (Abgeltungsteuer). Banks and brokers deduct 25% plus a 5.5% solidarity surcharge, and church tax if applicable. For residents this usually settles the liability, while non-residents can often reduce the amount under a double tax treaty by applying through the Federal Central Tax Office.

Your tax-free allowance

Everyone gets a small annual allowance, known as the Sparer-Pauschbetrag. Since January 2023, that’s 1,000 EUR per person or 2,000 EUR for couples. 

Capital gains on shares and funds

Profits from selling shares or funds are also subject to the 25% flat tax after your allowance. Special rules apply to investment funds, but your broker or bank will usually handle this for you.

Income type	How it’s taxed
Interest & dividends	25% flat tax + 5.5% solidarity surcharge (+ church tax if applicable), minus 1,000-2,000 EUR savers allowance
Capital gains (shares/funds)	Same 25% flat tax, with fund-specific rules applied by the provider
Non-residents	Withholding tax applies, but rates can often be reduced under tax treaties

Property and wealth taxes

When you buy a property in Germany, you’ll need to pay property transfer tax (Grunderwerbsteuer). The exact rate depends on the state, ranging from 3.5% in Bavaria to 6-6.5% in Berlin or North Rhine-Westphalia.Once you own a home, you’ll also pay annual property tax (Grundsteuer) to your municipality. 

There’s currently no wealth tax in Germany, although it’s sometimes discussed politically. Passing on assets by inheritance or gift is taxable, but generous allowances apply. For example, a spouse or registered partner can receive up to  500,000 EUR tax-free, while each child can receive up to 400,000 EUR. 

Tax-efficient investment options

Germany offers several ways to invest while keeping taxes lower:

• Riester pension (Riester-Rente): Save up to 2,100 EUR a year and get tax relief plus government bonuses (175 EUR for adults, extra per child). 
• Rürup pension (Basisrente): Popular with the self-employed and high earners. Contributions up to about 29,000 EUR (single) or 59,000 EUR (joint) can be offset from your taxable income.
• Workplace pensions: Part of your salary can go into a company pension without income tax (and partly without social security contributions). Many employers also top up by at least 15%.
• Vermögenswirksame Leistungen (VL): Small savings plans supported by your employer. If your income is under 40k/80k EUR, you can get an annual state bonus on top.
• Investor allowance & ETFs: The first 1,000 EUR of investment income (2,000 EUR for couples) is tax-free each year. Equity funds and ETFs also benefit from partial tax breaks.
• Property: Selling your main home is tax-free if it was your primary residence in the year of sale and the two preceding calendar years. Rental or investment properties can be sold tax-free once you have owned them for more than 10 years.

How to start investing in Germany

Even with all of its jargon, getting started with investing doesn’t have to feel scary. A few simple principles can help you build confidence and avoid common mistakes:

• Start with safer options: Simple, transparent, and widely available, savings accounts, government bonds, or ETF savings plans are popular entry points for beginners. 
• Spread your risk: Avoid putting all your money in one stock or sector. A balanced mix of shares, bonds and/or real estate can help protect your portfolio when markets fluctuate.
• Match your goals to your time frame: Short-term goals call for lower-risk choices. Long-term goals such as retirement can usually tolerate more risk – products like Riester or Rürup pensions are designed with that in mind.
• Only invest spare funds: Stick to money you won’t need for living expenses. For expats, that matters even more given the chance of sudden costs like relocation or family travel.
• Don’t borrow to invest: Using credit or loans for investments can magnify losses as well as gains. Financial experts generally recommend steering clear of this approach.
• Be wary of “get rich quick” offers: The German financial regulator (BaFin) frequently warns about unlicensed providers and fraudulent investment schemes, warning consumers to always check whether a provider is authorised before sending money.
• Ask for help if needed: Tax rules and cross-border issues can be tricky. A qualified financial adviser who understands both German and international regulations can save you headaches later on.

Conclusion

Although investing can be a smart way to grow your money in Germany, it also carries risks, so it’s important to do your research before getting started. Here are some simple tips to guide you along the way:

• Begin with safer options if you are new to investing, such as savings accounts or broad-based funds.
• Never commit more than you can comfortably afford to lose.
• Diversify your portfolio to reduce the impact of any one investment performing badly.
• Seek advice if you feel uncertain, especially when it comes to taxes and cross-border issues.

When it comes to moving money between countries to fund your investments or manage your finances, Wise can make the process easier. With transparent fees, the real exchange rate, and the ability to hold 40+ currencies in one account, Wise helps you keep more of your money working for you.

Disclaimer: Tax rules and investment regulations can change, and personal circumstances may affect how they apply. Always check the latest guidance or seek professional advice before making investment decisions. 

FAQ

What is the best way to invest in Germany?

There is no single “best” way to invest in Germany, as it all depends on your goals, risk tolerance, and time frame. Many beginners start with ETFs or savings plans, which spread risk across a wide range of assets and are easy to set up through banks or online brokers. For long-term planning, tax-advantaged pension products like Riester or Rürup can also be attractive.

Where to invest 10,000 euros in Germany?

With 10,000 EUR you could diversify between different asset classes, such as equity ETFs, bonds, or even part of a property investment. If you prefer a simple option, setting up an ETF savings plan can spread your money across global markets at relatively low cost. Always consider keeping a portion in cash or low-risk products for emergencies.

How to invest in gold in Germany?

Gold can be purchased in Germany through banks, precious metal dealers, and online platforms. Options include physical gold (coins or bars) or gold-backed exchange-traded funds (ETFs) and exchange-traded commodities (ETCs). Physical gold held for more than one year is usually tax-free when sold. 

Useful resources

Deutsche Börse (Frankfurt Stock Exchange): Official site of Germany’s main stock exchange, with market data and investor information.

BaFin (Federal Financial Supervisory Authority): Germany’s financial regulator, providing consumer alerts and guidance on licensed providers.

Deutsche Bundesbank: Germany’s central bank, offering reports, statistics, and economic analysis.

Federal Ministry of Finance (Bundesministerium der Finanzen): official government portal with information on taxes, pensions, and investment policy.

Finanztip: Independent German consumer site that compares financial products such as brokers, ETFs, and savings plans.

OECD Economic Outlook: International reports on economic trends and forecasts for Germany and other countries.

Disclaimer: Tax rules and investment regulations can change, and personal circumstances may affect how they apply. Always check the latest guidance or seek professional advice before making investment decisions.