Are you an expat in Berlin? Learn what the German Capital has to offer and why it is the best place to relocate and buy an apartment for self-use or as an investment.
Berlin: The city of Expats
Berlin has established itself as one of Europe’s most international cities, attracting expatriates, students, and international professionals from all over the world. With a approximately 4 million residents, Berlins population continues to grow, driven primarily by people relocating to the German capital. Almost 25% of the population are international residents, with more than 190 nationalities. Currently, almost one million expatriates are living in Berlin.
In addition to expats in Berlin, many young Germans from other cities such as Köln, Bremen, Stuttgart, Hamburg or Munich chose the capital city of Germany as their residence.
The city also has a quite young population compared to the rest of Germany, with a median age of 42 years, reflecting its strong appeal to young professionals and families, attracted to the relatively low cost of living.
| Expatriates by origin in Berlin | Total |
| European Countries | 488 000 |
| African Countries | 46 000 |
| American Countries | 47 000 |
| Asian Countries | 224 000 |
| Other countries | 25000 |
| Total Expats in Berlin | 830 000 |
Source: Office for Statistics Berlin-Brandenburg
Many EU citizens are not officially registered and are not listed on this table.
Why Berlin is a Popular Expat City
The number of expats in Berlin is not accidental. Indeed, Berlin offers a bunch of opportunities, both in the job market, cultural events, infrastructure and quality of life in a way few European capitals still do.
A Leading Start-up and Professional Hub for Expats
Berlin owes much of its attractiveness to its dynamic economic and intellectual ecosystem. The city has indeed firmly established itself as of the most important start-up hubs in the EU, home to thousands of tech-focused companies across fintech, e-commerce, AI, and media. Berlin attracts 70% of start-up venture capital investments.
Well-known names such as GetYourGuide, Babbel, Zalando or Soundcloud to name only a few were born in the capital of Germany. These German Start-ups coexist with big hubs of blue chip companies such as Tesla Group, Amazon, Siemens or Bayer. In addition, many global research and health institutions like the prestigious Robert Koch Institut coexist in Berlin, creating a dynamic employment market for international professionals, that have almost the insurance to find a job in the German capital.
One of Europe’s Most Important University Cities
With around 200,000 students across 47 universities, including Humboldt University, TU Berlin, and Freie Universität Berlin, the city continuously attracts young, international talent. This academic presence feeds directly into Berlin’s labour market and innovation ecosystem.
Culture, Tourism, and Quality of Life
Beyond work and education, the German capital offers exceptional cultural depth: over 180 museums, world-class orchestras, opera houses, theatres, legendary nightclubs and one of Europe’s most influential contemporary art and music scenes. Tourism figures underline this appeal, with over 12 million visitors per year and more than 30 million overnight stays.
At the same time, the capital of Germany stands out for its access to nature: around 35% of the city is made up of parks, forests, lakes, and waterways, making it one of Europe’s greenest capital cities.
Moreover, Berlin benefits from a highly developed infrastructure, with efficient public transportation, modern digital networks, and strong utilities. The city is exceptionally well connected nationally and internationally, providing fast links across Germany, Europe, and beyond.
All these factors combined make Berlin a city with a high overall quality of life, offering a balanced, attractive environment for residents, professionals, and families alike.
Why it makes sense to buy a Property as an Expat in Berlin
Housing Shortage
One of the most important factors shaping Berlin’s real estate market is its chronic housing shortage. For years, new construction has failed to keep pace with population growth.
According to the BBU housing industry association, Berlin’s residential vacancy rate stand at approximately 1% —an exceptionally low level. The shortage gets even worse in the most sought-after neighborhoods like Kreuzberg, Mitte, Friedrichshain, Prenzlauer Berg or Charlottenburg and Wilmersdorf.
Housing Access and Expensive Rentals for Expats
For expats In Berlin, the challenge goes beyond prices alone: listings, viewings, and contracts are usually conducted entirely in German, without mentioning that landlords and property managers often prefer local tenants with a proven rental history.
In addition, an expat in Berlin has a more difficult access to cheap housing than long-standing local tenants. Existing tenants mostly benefit from regulated, low rents aligned with the Mietspiegel (local rent index), whereas newcomers often face asking rents 40% higher than existing tenants. This creates a strong “lock-in effect”, where people stay in their rental apartments limiting supply and pushing expats in Berlin toward more expensive new-build apartments, with rents reaching between €20–40 per sqm.
Ultimately, rental prices are on the rise: In 2024, asking rents increased by around 12%.
As a result, ownership often becomes more economical, offering housing security, cost stability and protection against rent inflation.
Why a property in Berlin is a good investment for Expats
For an expat in Berlin considering property ownership, the capital of Germany offers a compelling mix of price stability, long-term growth potential, and relative affordability. While prices have increased significantly over the past decade, Berlin remains more accessible than capitals such as Paris, London, or Amsterdam.
Apartment selling prices in Berlin have shown gradual, resilient growth, even during periods of broader economic uncertainty. At the same time, Germany offers a high degree of legal certainty. It is Europe’s largest economy, with strong property rights, a reliable land registry system, and clear, transparent ownership rules.
Key Tax benefits for Expat Property Investors in Berlin:
| Tax Advantage | What It Means | Practical Example |
| Accelerated Depreciation (AfA) | New residential rental buildings can be depreciated at 5% per year (degressive) for 6 years | A €500,000 building value allows up to €25,000 depreciation per year reducing income tax burden. |
| Capital Gains Tax-Free After 10 Years | Sale profits are fully tax-free after a 10-year holding period | Buy in 2015 for €400,000, sell in 2025 for €600,000 → €200,000 gain, 0% capital gains tax |
| Self-Use Tax-Free After 3 Years | If owner-occupied in the year of sale and the two previous calendar years, gains are tax-free | Buy in 2023, live there 2024–2026, sell in 2026 → no capital gains tax, even before 10 years |
What an expat in Berlin needs to know before buying
Assess Your Mortgage Affordability in Germany
In order to get a mortgage in Germany, it is important to get information about the process and the possibilities.
Expats in Berlin can obtain German bank financing, up to 100% of price financed, particularly when buying for self-use. All internationals with stable income or equity, can benefit from the same conditions than local buyers when they can demonstrate good creditworthiness.
Banks in Germany typically require:
- Proof of income (employment contracts, payslips, tax returns)
- Proof of equity (savings, assets)
- Credit history (SCHUFA if available)
- Identification and residence status documentation
Note that in Germany, you don’t need a mortgage insurance.
Get Professional Guidance
For expats buying an apartment in Berlin, the process can quickly become complex due to language barriers, unfamiliar regulations, and technical documentation that is almost always handled in German. From understanding purchase contracts and notary procedures to preparing the right documents for German banks when applying for a mortgage, professional guidance is essential. Working with an experienced English speaking real estate agent helps bridge these gaps, streamlining communication with banks, notaries, and sellers, and making the entire buying process in the capital of Germany clearer, faster, and straightforward.
Get End-to-End Property Support for Expats with First Citiz
At First Citiz Berlin, our English-speaking team supports you at every step, from finding the right apartment to reviewing documents and explaining local requirements. We have a large portfolio of properties, can provide clear insights into Berlin’s neighbourhoods and the real estate market. At First Citiz Berlin, we coordinate closely with banks to find you the best mortgage, notaries and other partners to support you with everything. With our real estate agency, you will benefit as an expat in Berlin from expert guidance, local property market knowledge, and a smooth, transparent property purchase in Germany.
