Lofer is located in the historic Pinzgau region, in the valley of the Saalach river between the Chiemgau Alps and Reiter Alpe in the north and east, and the Lofer Mountains in the southwest. In the west, the road leads to the municipality of Waidring in Tyrol, while in the north the Kleines Deutsches Eck highway connection, part of the European route E641, runs along the Saalach river to the southwestern outskirts of Salzburg via neighbouring Unken and over the border with Germany.