Property renovations in Germany

• How can you finance a home improvement project in Germany?Financing through your personal savingsFinancing through a German bank personal loanFinancing through a German bank renovation loanFund your German renovation from abroad with a multi-currency service

• Financing through your personal savings

• Financing through a German bank personal loan

• Financing through a German bank renovation loan

• Fund your German renovation from abroad with a multi-currency service

• What can you use a renovation loan for?How much can you borrow for a home renovation in Germany?The steps necessary to arrange a renovation loan

• How much can you borrow for a home renovation in Germany?

• The steps necessary to arrange a renovation loan

• What government subsidies can I use for a renovation in Germany?

• Renovations, decorations and common retailers in GermanyBuilding materials, fixtures, fittings and DIYHousehold goodsKitchenBathroom

• Building materials, fixtures, fittings and DIY

• Household goods

• Kitchen

• Bathroom

• Maintenance and safetyGermany's Building Energy Act (GEG)Snow and ice clearingAir pollution and safety

• Germany's Building Energy Act (GEG)

• Snow and ice clearing

• Air pollution and safety

• Renovations advice in Germany

• Useful resources

International money transfers with a multi-currency service

When moving large sums to pay for your German property renovation, losing money to hidden exchange rate markups and high bank fees is costly. the multi-currency service uses the mid-market exchange rate for all transfers and shows you all fees upfront.

Get a guaranteed rate for your large transfer today.

How can you finance a home improvement project in Germany?

You may choose to finance your home renovation project in Germany through your own savings, or through taking out a local loan or mortgage. You could also choose to raise funds overseas if you're an expat in Germany, and bring the money to Germany to pay for your home improvements.

The main financing options for home renovations in Germany include:

• Personal savings: Pay for your renovations with no outside financing if you have the savings already (eg. through other investments)

• Mortgage refinancing: If you already have a mortgage, you may increase or extend this to get more money for your project*

• German or overseas issued renovation loans: Local banks have specific home renovation loans, or you may take a loan in your home country if you're an expat in Germany

• German or overseas personal loans: German banks may offer standard personal loans for home improvements, or you could also choose to get financing overseas and transfer to Germany instead

*Be aware that refinancing could lead to a new interest rate and extending your loan term may increase the total interest paid over time.

Let's look through some of the more common options to finance a home improvement project in Germany.

Note: This guide provides general information and does not constitute financial advice. Consider speaking with a qualified adviser.

Financing through your personal savings

If you're planning a more modest renovation, or if you have a large amount of money to hand, you may decide to fund your home project from your own savings. Self-funding isn't feasible or the right choice for everyone. However, if you have the cash on hand it is a good way to avoid any excess costs involved in paying loan interest or fees.

Financing through a German bank personal loan

Some local banks have personal loans (Privatkredit) that can be used for a range of needs, including home renovations. Loans are offered based on individual circumstances, including income, credit history (Schufa), residency status and other eligibility factors. You may find that the interest rate you're offered is higher if you're an expat in Germany compared to a local German citizen or PR. This makes finding an effective way to manage your overall international finances, such as using a multi-currency account, even more important.

Fees including annual fees, early redemption charges and late payment costs, as well as the agreed interest, may also apply.

Financing through a German bank renovation loan

Some German banks offer specific renovation loans, which could be for general home improvements, or which sometimes specify that you must be making eco-friendly changes to an eligible property. As an example ING has a range of loan offers for renovations and other modernisation plans, with a helpful calculator on their website to allow you to view the options based on your situation.

Terms, costs and interest do vary a lot on loans like these, so do compare your options before finalising the details of your renovation project.

Fund your German renovation from abroad with a multi-currency service

If you're paying for your German home renovation from overseas, either by taking out a loan in your home country, or through bringing your savings from overseas to Germany, you'll need a safe, cheap and reliable money transfer service. Check out multi-currency services, which offer low-cost international transfers which use the mid-market rate with transparent fees and often quick delivery times.

These services also supports high value transfers and directly supports people moving larger amounts of money, usually over the equivalent of 20,000 GBP. You'll qualify for automatic discounts on the variable fee when sending higher value payments and can get 24/7 support from the service if you have questions or need help arranging the paperwork for your payment.

*For more information on how the multi-currency service works in your country, please visit the service website and select your country for full information about the products available

Money Management

How to use the multi-currency service in Germany as an expat

What can you use a renovation loan for?

Banks might have differing terms and requirements for renovation loans, and you'll often find that there are several different categories of renovation or modernisation which could be covered. These can include:

• Renovierung, this can include superficial works like painting, and work to maintain the property value, such as fixing up outside space for example

• Sanierung, generally loans required to fix significant issues on the property, which may be more urgent or costly, like fixing electrical safety problems

• Modernisierung, modernising activities which often covers work to improve energy efficiency of a property

Before you start to apply for loans you'll need to think through the works you want to complete, to make sure you're applying to the right type of loan. Different categories may have their own interest rates, maximum loan amounts and other criteria, so getting the details right first time can help save hassle once your works are underway.

The good news is that German banks can often offer lots of support for planning and financing a renovation project, particularly for modernising. ING Germany for example offers help to connect customers with renovation contractors who can help you plan and implement energy efficiency changes, and there may also be better interest rates and government support on offer for energy efficiency works.

How much can you borrow for a home renovation in Germany?

Ultimately the amount you can borrow depends on many factors including the property value, the work you're doing and your own Schufa score (credit score). To give a feel, ING Germany's renovation and modernisation loans could look like this:

• Renovation, including garden works or redecoration, up to 75,000 EUR

• Energy efficiency works on a new construction property, up to 90,000 EUR

• Energy efficiency for a property with an ING mortgage, up to 30,000 EUR

Different banks and loan services will have their own rules and requirements for renovation loans, which will mean shopping around to secure the best fit for your specific needs.

The steps necessary to arrange a renovation loan

Here are the steps usually necessary to arrange a home renovation loan in Germany:

Step 1: Speak to mortgage adviser or bank

You'll be able to compare a few renovation loan options online using comparison websites, but individual banks also suggest you talk directly to their advisers to compare the interest rates and loan options offered on comparison sites. Talking your needs through with a bank specialist can also help you get information beyond financing, such as connections to energy specialists for your renovation.

Step 2: Specify renovation plans and costs

Once you've decided which bank or provider you'd like to take a loan from you'll need to get a specific quote based on your renovation plans. Banks may offer different rates and loan amounts depending on the work type and whether or not you're an existing customer.

Step 3: Activate your home renovation loan

Once you're ready to start work you can receive your money from the bank either as a deposit to your bank account or in the form of payments which can be made directly to your contractors.

Step 4: Complete renovation work

Your team of designers and contractors can now complete the renovation and any required snagging, before you're ready to sign off the project and move in.

Step 5: Submit bills and documentation

Check if your bank requires you to follow up on your loan by providing proof of the use of funds. If you've taken a loan as a deposit to your account you may be asked to provide the bank with documents to show you used the money in accordance with the terms of the loan.

The end to end process to secure financing for a renovation project can take some time. If you're an expat buying property in Germany, think ahead about renovation financing and speak to mortgage advisers long before you'll be hoping to start your renovation plan.

Banking in Germany

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What government subsidies can I use for a renovation in Germany?

You may be able to qualify for some German government support for energy efficient improvements on your property, often as part of the Buildings Energy Act requirements.

For example, you may choose to get an energy efficiency renovation roadmap (iSFP for your property which can be completed by qualified energy consultants who may qualify for some Federal funding. This roadmap gives you information about possible energy efficiency improvements, but is not mandatory. You may be able to get up to 50% off the cost of this plan which could help you decide on the changes you want to make to your home over the next decade or more.

The German government also offers various grants for the energy renovation of existing residential buildings which can be helpful for some buyers. Plus, there are KfW subsidized loans or even grants for some works. Banks can help advise you on the available options in some cases, or you can go directly to the agencies involved to view and compare the options and see if any may apply to your planned works.

Renovations, decorations and common retailers in Germany

There are many different levels of renovation work from cosmetic changes to major renovations, and no matter what you're planning you'll need to make sure you've got all the proper planning permissions in place, with a fit-for-purpose budget to see your project through to completion.

Here are some common costs to think about, and some ideas to consider when planning:

Building materials, fixtures, fittings and DIY

Costs of materials, fixtures, fittings and DIY supplies vary enormously, largely dictated by the aesthetic and product quality choices you've made.

There are different suppliers depending on what you're looking for, from construction specialists and trade sellers which may have multiple locations, such as Bauhaus through to everyone's favourite Ikea for your finishing touches and basic DIY materials. You can also buy lots of incidental supplies such as paint brushes, rollers, cloths and other essentials at neighbourhood DIY stores, check on Google maps for the best locations close to you.

Household goods

Part of many renovations will be replacing or upgrading household goods from your kitchen electrical appliances through to your living room cabinetry and furnishings.

Options here abound, from MediaMarkt and Saturn for electrical appliances, or a provider like XXXLutz for furniture. There are also department stores which can be good all round options for a broad range of goods, including delivery and insurance cover if you need them. Bear in mind that your home loan may not be intended to cover some furnishings if you're buying standalone items rather than having built-ins.

Kitchen

A kitchen upgrade can make a huge difference to your home, and while the costs can be fairly high, having a functional and enjoyable space for cooking matters a lot to many people. Kitchen upgrades can also add value to a home, making this a smart long term choice for many home owners.

For ideas check out Nolte Küchen or Nobilia. Nobilia has a reputation for being good value, and both providers also offer design ideas to help you choose your final renovation look and finishes.

Bathroom

Making changes to your bathroom is likely to be fairly budget friendly and can make a big difference to your home. The quality of the finish you choose will make a big difference too, but don't skimp on the costs of a good plumber.

For design ideas and supplies, take a look at large companies like Hansgrohe. Hansgrohe has a full range of bathroom fixtures and also offers a 3D design tool to help you get a feel for how your new bathroom may look after renovation. Villeroy Boch is another good option with design support and planning, as well as a comprehensive range covering bathroom, kitchen and living areas.

Maintenance and safety

Once you own a property in Germany you will have certain obligations which include mandatory requirements. How this affects your home depends on the property type, age, location and other factors, but understanding your duties upfront is crucial.

We've covered a few common issues here, but do get professional advice if you're at all unsure of the rules which may apply to your specific property in Germany.

Germany's Building Energy Act (GEG)

Before buying a property in Germany it's worth checking if you will have any obligations under the Building Energy Act. At the time of research (2nd December 2025) there are still transitional measures in place for some parts of the act. For example, while newer heating systems fitted into homes must comply with specific energy efficiency rules, some older systems which are in good working order may not need to be replaced immediately. As the requirements change you may inherit duties under this act.

Snow and ice clearing

Property owners in Germany must keep the footpaths in front of their property clear of snow and ice. This is to ensure safety, and while the exact requirements can vary by property type and location, it's a good idea to prepare for bad weather in advance by buying snow clearing equipment, salt and grit.

Air pollution and safety

If your home has an open fire or wood burner, or similar, be sure to check all the rules which apply based on the specific property, location and fittings you have. Strict rules exist to prevent air pollution in Germany which dictate the type of fuels which can be burned in a home, and prevent frequent use of open fireplaces.

Renovations advice in Germany

If you've decided to take the leap and buy a new place in Germany, the chances are that you'll want to make a few changes once you take possession of your new home. Here are a few final words to make sure the renovations all go to plan and budget:

• German home renovations may cost anything from a few hundred euros to many tens of thousands, depending on the scope of work

• Local banks offer dedicated property renovation loans and can also offer personal loans to cover home improvement costs with fewer restrictions on usage

• Government support including loans and grants may be available for energy efficiency improvements on some properties

• If you need to fund your German home renovation from overseas, use a low-cost provider like multi-currency services to send your money to euros (EUR), to keep your renovation fees down overall