Buying a home in Germany involves more than the headline price. Real estate transfer tax (Grunderwerbsteuer), notary, land registry and broker commission together commonly add up to 10–15% of the purchase price — on a €400,000 home that's €40,000–60,000 on top. Our Additional Purchase Costs Calculator shows the breakdown by federal state.
The three main components
- Real estate transfer tax (Grunderwerbsteuer) — paid to the federal state's tax office
- Notary and land registry fees — paid to the notary and the Grundbuchamt
- Broker commission (Maklerprovision) — paid on a successful sale
1. Transfer tax: 3.5%–6.5% by federal state
The transfer tax rate depends on where the property is located, not where the buyer lives.
| Federal state | Rate | Tax on €400,000 |
|---|---|---|
| Bavaria | 3.5% | €14,000 |
| Hamburg, Saxony | 5.5% | €22,000 |
| Baden-Württemberg, Bremen, Lower Saxony, Rhineland-Palatinate, Saxony-Anhalt, Thuringia | 5.0% | €20,000 |
| Berlin, Hesse, Mecklenburg-Vorpommern | 6.0% | €24,000 |
| Brandenburg, NRW, Saarland, Schleswig-Holstein | 6.5% | €26,000 |
For a tax-only view see the Real Estate Transfer Tax Calculator.
2. Notary and land registry: roughly 1.5–2.0%
Notary and land registry fees in Germany are statutory (GNotKG) and scale with the contract value (purchase price). Rule of thumb:
- Notary: 1.0–1.5% (notarisation, execution, escrow)
- Land registry: ~0.5% (ownership transfer, mortgage entry)
Together about 1.5–2.0%. Complex contracts (multiple mortgages, developer agreements, escrow payments) push the number up. For a detailed GNotKG-based breakdown use the Notary Fee Calculator.
3. Broker commission and the Bestellerprinzip
Since 23 December 2020, residential sales follow a nationwide rule: if both parties used the broker, the commission is split equally. The seller can no longer load the full amount onto the buyer.
Typical total commission rates (incl. 19% VAT):
- 5.95% — lower market level
- 7.14% — very common (3.57% per side)
On €400,000 at 7.14% with a 50/50 split, the buyer's share is €14,280. A private sale without a broker eliminates this position entirely — 0% is a valid input.
Worked example: NRW, €400,000 purchase price
| Position | Percent | Amount |
|---|---|---|
| Transfer tax NRW | 6.5% | €26,000 |
| Notary + land registry | 2.0% | €8,000 |
| Broker (buyer share, 50% of 7.14%) | 3.57% | €14,280 |
| Total additional costs | 12.07% | €48,280 |
Plus the €400,000 price, the total cost reaches €448,280. Banks generally won't lend against the €48,280 of side costs — they have to come from equity.
Recurring costs after closing
- Property tax (Grundsteuer) — annual municipal tax (see the Property Tax Calculator for the 2025 federal model)
- Maintenance reserve — mandatory for condominiums; ~€1/sqm/month is sensible for houses
- Hausgeld for condominiums (common-area expenses)
Ways to reduce costs
- List movables separately — kitchen, sauna, awning, PV system reduce the transfer tax base (use realistic values).
- Pick a low-tax state if you have location flexibility.
- Family transfers between spouses, parents-children, grandparents-grandchildren are exempt from transfer tax.
- Private sale saves the full buyer's share of the broker commission.
FAQ
When are the costs due?
Notary fees roughly two weeks after signing. Transfer tax 4–6 weeks after notarisation. Broker commission after closing. Land registry fees on entry.
What does the notary cost on a €500,000 property?
Around €6,000–€7,500 in total (notary 1.0–1.5% + Grundbuch ~0.5%). For an exact figure use the Notary Fee Calculator.
Are additional purchase costs tax-deductible?
For owner-occupied homes: no. For rented property: yes — as deductible expenses or (for transfer tax and notary) as part of the depreciable acquisition cost.
Bottom line
10–15% side costs are the norm, not the exception. Budget them as equity from day one and compare federal state tax rates. The Additional Purchase Costs Calculator runs your specific scenario in seconds.