Defending champion Levy of Germany finished 13-under in a windswept fourth round at Green Eagle Golf Courses in Hamburg.
Levy missed a chance to win the competition and it was Smith who held his nerve to roll in a birdie putt on the par-five 18.
Levy, who took home more than 222,220 Euros as runner-up, said: "I struggled a bit on the putting but I think I played really good golf and I improved my game week after week and that's really nice.
"I'm really proud of what I did. I shot three under in the conditions that were really tough and I played really well. I think there are a lot of good things coming for me in the next few months."
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