How high is the transfer tax in each German state?
The transfer tax is set per state. Bavaria (3.5%) and Saxony (5.5%) are at the low end, while North Rhine-Westphalia, Brandenburg, Saarland and Schleswig-Holstein top the list at 6.5%. On a €400,000 purchase that's €12,000 difference between cheapest and most expensive states.
What other closing costs come on top?
Beyond the transfer tax, you pay notary fees (~1.5% of price), land register (~0.5%) and — if a broker was involved — the broker fee. Since the 2020 reform this is typically split equally between buyer and seller, around 3.57% incl. VAT each. Total closing costs usually 9–15% depending on state and broker.
Key notes
- Tax rates change politically — check current rates for large purchases.
- List inventory (kitchen, furniture) separately in the contract — it's not subject to transfer tax.
- Notary fees in Germany are regulated by law (GNotKG) — comparing rarely pays off.
- Banks typically finance only the purchase price — budget closing costs from your own equity.
What the Grunderwerbsteuer really is — and why it varies so much
The Grunderwerbsteuer is a German transfer tax that under §1 GrEStG applies whenever ownership of a German plot of land or apartment changes. The taxable base is normally the notarised purchase price including assumed liabilities, but excluding movables such as fitted kitchens, saunas or awnings. If a buyer separately lists a fitted kitchen worth 12,000 EUR in the contract, that saves 720 EUR of tax at a 6% rate. The catch: the movables' value must be realistic and provable, otherwise the tax office can reassess.
The rate has been set by the individual states since the 2006 federalism reform — ranging from 3.5% (Bavaria and Saxony, 2024) to 6.5% (Brandenburg, North Rhine-Westphalia, Saarland, Schleswig-Holstein, Thuringia). On a 500,000 EUR purchase, that means 17,500 to 32,500 EUR of tax — a 15,000 EUR difference based on state alone. Hesse periodically discusses reductions or first-time-buyer allowances; Bavaria has announced a 500,000 EUR allowance for owner-occupiers. The list is dynamic — before signing, take a quick look at the regional finance authority website.
By law, both seller and buyer are jointly liable — but the notarial contract almost always assigns the burden to the buyer. The assessment notice usually arrives 4 to 8 weeks after notarisation and is payable within one month. Only upon receipt does the tax office issue the clearance certificate (Unbedenklichkeitsbescheinigung), without which the land registry will not record the new ownership. Skipping the tax means not getting the property registered to your name — even if the full purchase price has been paid.
Formula for total closing costs
Closing costs consist of four main blocks, each computed as a percentage of the purchase price:
Grunderwerbsteuer = Kaufpreis * Steuersatz_Bundesland
Notar = Kaufpreis * 1,0 % bis 2,0 %
Grundbuch = Kaufpreis * 0,3 % bis 0,5 %
Maklercourtage = Kaufpreis * Provision_inkl_USt
Nebenkosten_gesamt = Steuer + Notar + Grundbuch + Maklergebühr
Concrete cost examples for typical purchase prices
The figures below assume 1.5% notary, 0.5% land registry and 3.57% broker commission (incl. 19% VAT).
- 300,000 EUR apartment in Munich (Bavaria, 3.5%): 10,500 EUR tax + 4,500 EUR notary + 1,500 EUR land registry + 10,710 EUR broker = 27,210 EUR in closing costs (9.1% of the price).
- 450,000 EUR house in Cologne (NRW, 6.5%): 29,250 EUR tax + 6,750 EUR notary + 2,250 EUR land registry + 16,065 EUR broker = 54,315 EUR in closing costs (12.1%).
- 600,000 EUR house in Dresden (Saxony, 5.5% since 2023): 33,000 EUR tax + 9,000 EUR notary + 3,000 EUR land registry + 21,420 EUR broker = 66,420 EUR (11.1%).
- 250,000 EUR apartment in Hamburg (5.5%): 13,750 EUR tax + 3,750 EUR notary + 1,250 EUR land registry + 8,925 EUR broker = 27,675 EUR (11.1%).
- 800,000 EUR new build without broker in Stuttgart (BW, 5.0%): 40,000 EUR tax + 12,000 EUR notary + 4,000 EUR land registry + 0 EUR broker = 56,000 EUR (7.0%) — skipping the broker saves 28,560 EUR.
Limits of the calculator
The calculator shows typical defaults. In practice many special cases can deviate: purchases between relatives in direct line (parents to children, spouses) are exempt under §3 GrEStG. Inheritances and gifts trigger inheritance or gift tax instead. With developer contracts (land plus build from one provider), the tax office may apply the so-called uniform contract doctrine and tax the construction portion too. Broker commissions have been split 50/50 between buyer and seller since the 23.12.2020 reform when the buyer is a consumer and the property is a single-family house or apartment. Notary and land-registry fees follow the statutory GNotKG schedule and are not negotiable. This page is informational, not tax or legal advice — for larger purchases involve a notary or tax advisor.
Frequently asked questions about real-estate transfer tax and closing costs
- How much equity do I really need to buy a home in Germany?
- Rule of thumb at most banks: closing costs (tax, notary, registry, possibly broker) should come entirely from your own equity — typically 9 to 12% of the purchase price. On 400,000 EUR that is 36,000 to 48,000 EUR. Without that buffer, you either get refused or pay notably higher interest (100% or 110% financing).
- Which German state has the lowest Grunderwerbsteuer in 2026?
- Bavaria and Saxony are lowest at 3.5% (as of 2024). Saxony had briefly raised it to 5.5%, and several states discuss further adjustments. Brandenburg, NRW, Saarland, Schleswig-Holstein and Thuringia sit at the top with 6.5%. Current rates are listed on each state finance ministry's website.
- Can I deduct the Grunderwerbsteuer for tax purposes?
- For owner-occupied homes, no — the tax is part of the acquisition cost and not deductible. For rental properties, the Grunderwerbsteuer attributable to the building is added to the building's cost basis and depreciated via AfA, typically over 50 years (2% per year). On a 25,000 EUR tax share attributable to the building, that means 500 EUR depreciation per year.
- When does the Grunderwerbsteuer become payable?
- The notary reports the sale to the tax office within two weeks. The office issues the assessment notice, typically 4 to 8 weeks after notarisation. Payment is due within one month of receipt. Only after payment does the tax office issue the clearance certificate required for the land-registry entry.
- How can I legally reduce my Grunderwerbsteuer?
- List movable inventory like fitted kitchens, saunas, awnings or lamps separately in the contract at realistic values — these amounts reduce the taxable base. For developer contracts, separate the land purchase and the building contract clearly in time and paperwork (beware the uniform-contract trap). Transfers between spouses and direct descendants are tax-exempt. Bavaria's announced 500,000 EUR allowance for first-time buyers may open additional savings once enacted.
- What is the Unbedenklichkeitsbescheinigung?
- A confirmation from the tax office that the Grunderwerbsteuer has been paid. Without it the land registry cannot record the new owner. In practice the office sends the certificate directly to the notary upon receipt of payment; the notary then forwards it to the land registry. Legally you only become the owner once the tax has been transferred — even if the seller already has the purchase price.
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