Buying property in Germany? Then you will pay Grunderwerbsteuer — the real estate transfer tax — and the rate depends entirely on which federal state (Bundesland) the property is in. Rates range from 3.5% in Bavaria to 6.5% in Brandenburg, NRW, Saarland and Schleswig-Holstein. On a €400,000 purchase, that difference amounts to €12,000. Use our real estate transfer tax calculator to get the exact figure for your state.
What Is the Grunderwerbsteuer?
The Grunderwerbsteuer (Real Property Transfer Tax Act, GrEStG) is a one-time tax triggered when a property purchase contract is notarised. The tax office issues an assessment notice and will only release the Unbedenklichkeitsbescheinigung (clearance certificate) once the tax is paid — without it, no land register entry is possible.
The calculation is straightforward: purchase price × tax rate = transfer tax. There are no allowances or progressive brackets — a flat percentage applies to the full purchase price.
Tax Rates by State 2026
| Federal State | Tax Rate | Tax on €400,000 |
|---|---|---|
| Bavaria (Bayern) | 3.5% | €14,000 |
| Saxony (Sachsen) | 3.5% | €14,000 |
| Hamburg | 5.5% | €22,000 |
| Baden-Wuerttemberg | 5.0% | €20,000 |
| Bremen | 5.0% | €20,000 |
| Lower Saxony (Niedersachsen) | 5.0% | €20,000 |
| Rhineland-Palatinate (Rheinland-Pfalz) | 5.0% | €20,000 |
| Saxony-Anhalt (Sachsen-Anhalt) | 5.0% | €20,000 |
| Thuringia (Thueringen) | 5.0% | €20,000 |
| Berlin | 6.0% | €24,000 |
| Hesse (Hessen) | 6.0% | €24,000 |
| Mecklenburg-Vorpommern | 6.0% | €24,000 |
| Brandenburg | 6.5% | €26,000 |
| North Rhine-Westphalia (NRW) | 6.5% | €26,000 |
| Saarland | 6.5% | €26,000 |
| Schleswig-Holstein | 6.5% | €26,000 |
When Is the Transfer Tax Waived?
There are several exemptions under the GrEStG:
- Gifts and inheritance between close relatives: Transfers between spouses, registered partners, children, parents, and grandparents are exempt. Inheritance or gift tax may apply instead.
- Purchase price below €2,500: Very low-value land transfers are exempt.
- Corporate restructuring: Certain intra-group transfers within a corporate group are exempt under specific conditions.
How to Legally Reduce the Tax Base
Separately itemise movables
Fitted kitchen, sauna, garden equipment, or a solar panel system can be listed as separate line items in the purchase contract. These movable assets are not subject to the land transfer tax. Example: €15,000 for a fitted kitchen listed separately saves €975 at a 6.5% tax rate.
Choose the right state
For buyers flexible about location, buying just across the Bavarian border instead of in Baden-Wuerttemberg saves 1.5 percentage points — €6,000 on a €400,000 property.
Buy within the family
Purchases between parents and children, grandparents and grandchildren, and between spouses are fully exempt. Transferring property within the family avoids the tax entirely.
Planning Your Purchase Costs
Beyond the purchase price, a realistic German property purchase budget includes:
| Cost Item | Typical Range |
|---|---|
| Real estate transfer tax (Grunderwerbsteuer) | 3.5% – 6.5% of purchase price |
| Notary fees | approx. 1.0% – 1.5% |
| Land register entry | approx. 0.5% |
| Estate agent commission | 0% – 3.57% (depending on agreement) |
Total transaction costs of 10%–15% of the purchase price are realistic. Banks rarely finance these costs, so they typically need to come from equity.
Conclusion
The Grunderwerbsteuer is one of the largest one-off costs when buying German property. Knowing your state's rate and legally reducing the tax base through separate itemisation of movables can result in meaningful savings. Use our real estate transfer tax calculator to calculate the exact tax for your federal state and purchase price.