Purchase costs

Transfer tax by federal state, notary, land registry and broker – and how much you need to borrow.

€49,815 in extra costs

On top of the price you pay €49,815 in incidental costs (11.1%). With your own capital you need to borrow €409,815.

That is a loan-to-value of 91.1%: up to 100% – expect a noticeable surcharge.

Property

Purchase price Purchase price The price agreed with the seller in the notarised purchase contract. All incidental costs are calculated from it.

As in the listing or your offer

€

Federal state Federal state German: Bundesland Germany's 16 states. Each sets its own real estate transfer tax, which is why the state of the property matters for the purchase costs. More about this term

Bundesland · Where the property is – sets the transfer tax

Fees

Kaufnebenkosten

Notary Notary German: Notar In Germany every property purchase must be signed in front of a notary, who drafts the contract and handles the registration. Fees are set by law (GNotKG), roughly 1–1.5% of the price. More about this term

Notar

Land registry Land registry German: Grundbuch The official register of who owns a property and which loans are secured on it (Grundschuld). Entering you as owner and registering the bank's security costs about 0.5% of the price. More about this term

Grundbuch

Broker's fee Broker's commission German: Maklerprovision The fee for the estate agent. For houses and apartments the buyer pays at most half of it; a common share is 3.57% of the price including VAT. There is none if you buy directly from the owner. More about this term

Maklerprovision · Your share incl. VAT; 0 if you buy without an agent

Money

Own capital Own capital (down payment) German: Eigenkapital Savings you put into the purchase yourself. Banks expect it to cover at least the incidental costs; with 20% or more of the price on top you get noticeably better interest rates. More about this term

Eigenkapital · Savings you put in

€

More details

Furniture and fittings Furniture and fittings Movable items you buy with the home can be listed separately in the contract. No transfer tax is due on them, which lowers the tax. Keep the value realistic – the tax office may check it.

e.g. a fitted kitchen

€

Renovation Renovation Work you plan right after buying, such as a new bathroom or flooring. It is added to the loan; no transfer tax is due on it.

Financed together with the purchase

€

Results update as you type.

Incidental costs Incidental purchase costs German: Kaufnebenkosten Costs on top of the price: real estate transfer tax, notary, land registry and possibly a broker. Together 7–15% of the price, depending on the federal state. Banks rarely finance them, so plan to pay them from your own capital. More about this term: €49,815
Total cost Total cost Price plus incidental costs plus renovation – everything the purchase costs you.: €499,815
Loan needed Loan amount German: Darlehensbetrag The total cost minus the own capital you bring. This is what you ask the bank for. The amount you borrow from the bank – usually the purchase price plus incidental costs, minus the own capital you bring. More about this term: €409,815
Loan-to-value Loan-to-value (LTV) German: Beleihungsauslauf Here: the loan divided by the price plus renovation. Banks use their own, lower valuation of the property (Beleihungswert), so their figure is usually somewhat higher. The loan as a share of the property's value. The lower it is, the less risk for the bank and the better your interest rate – the usual steps are 60%, 80%, 90% and 100%. Banks measure it against their own cautious valuation (Beleihungswert), often 10–20% below the price, so their figure is higher than loan ÷ price. More about this term: 91.1%

What you pay on top Incidental purchase costs German: Kaufnebenkosten Costs on top of the price: real estate transfer tax, notary, land registry and possibly a broker. Together 7–15% of the price, depending on the federal state. Banks rarely finance them, so plan to pay them from your own capital. More about this term

Due within weeks of signing, each with its rate of the price

Transfer tax (Grunderwerbsteuer): €24,750 5.5%
Notary (Notar): €6,750 1.5%
Land registry (Grundbuch): €2,250 0.5%
Broker (Makler): €16,065 3.57%
Incidental costs: €49,815

How the purchase is paid How the purchase is paid Your own capital is used first; the bank lends the rest. The larger your share, the better the interest rate you are offered.

Shares of the total cost, including incidentals and renovation

Own capital: €90,000 18%
Loan: €409,815 82%
Total cost: €499,815

Transfer tax across Germany Real estate transfer tax German: Grunderwerbsteuer A one-off tax on buying property, between 3.5% and 6.5% of the price depending on the federal state. The tax office sends the bill after the purchase; you are only registered as owner once it is paid. Movable items such as a fitted kitchen can be listed separately and are not taxed. More about this term

The same €450,000 home in each federal state

Each state in detail: Baden-Württemberg, Bavaria (Bayern), Berlin, Brandenburg, Bremen, Hamburg, Hesse (Hessen), Lower Saxony (Niedersachsen), Mecklenburg-Western Pomerania (Mecklenburg-Vorpommern), North Rhine-Westphalia (Nordrhein-Westfalen), Rhineland-Palatinate (Rheinland-Pfalz), Saarland, Saxony (Sachsen), Saxony-Anhalt (Sachsen-Anhalt), Schleswig-Holstein, Thuringia (Thüringen).

Next step

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How this is calculated

The transfer tax (Grunderwerbsteuer) is your federal state's rate applied to the price; movable items such as a fitted kitchen, listed separately in the contract, are not taxed. Notary, land registry and broker are calculated as a share of the price.

Price plus incidental costs plus renovation is the total cost; minus your own capital, what remains is the loan. The loan-to-value ratio sets the loan against the value of the property.

Questions and answers

What are the closing costs when buying property in Germany?

Usually 7 to 15% of the price in total: 3.5 to 6.5% transfer tax depending on the federal state, about 1.5% notary, 0.5% land registry and, if an agent sold it, up to 3.57% broker's fee.

Can I reduce the property transfer tax?

Movable items such as a fitted kitchen or furniture can be listed separately in the purchase contract; no transfer tax is due on them. Keep the value realistic – the tax office may check it.

Will a German bank finance the incidental costs?

Rarely, and only at higher interest. Plan to pay them from your own savings.