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I have found at When translating a site go with URLs in Chinese or English? that
The URLs should be in the same language as the content.
If you want a Chinese URL, it's pretty clear that you go with
However, I wonder how is it with European languages. Should you replace umlaute by common standards?
For example, what would be better practice, to translate example.com/product/oil in German into
example.com/produkt/öl
or
example.com/produkt/oel
Special characters can be used in the URL without any problem. In terms of SEO, check this video of Matt Cutts a few years ago: https://www.youtube.com/watch?v=K4TKJwvTu50.
The problem would not be Google but other search engines or apps that are not prepared to work with that kind of characters. Main searchers and browsers will be ok.
