Information on Property Acquisition in Germany – 4 Key Points

Property Acquisition in Germany – Costs

When purchasing property in Germany, additional acquisition costs arise beyond the purchase price. These incidental purchase costs are typically calculated as a percentage of the notarized purchase price and include notary and land registry fees, as well as the real estate transfer tax, which varies by federal state.

Overview of Incidental Purchase Costs:

1. Notary Fees: Approximately 1% – 1.5% of the purchase price, depending on the transaction amount.
2. Land Registry Fees: Around 0.5% of the purchase price.
3. Real Estate Transfer Tax: Between 3.5% and 6.5%, depending on the federal state.
4. Broker Commission: For residential properties intended for personal use, a maximum of 3.57% including VAT. For other properties, up to 7.14% including VAT.

Real Estate Transfer Tax by Federal State:

• 6.5%: Brandenburg, Schleswig-Holstein, North Rhine-Westphalia, Saarland
• 6.0%: Mecklenburg-Western Pomerania, Berlin, Hesse
• 5.5%: Hamburg, Saxony
• 5.0%: Lower Saxony, Rhineland-Palatinate, Bremen, Saxony-Anhalt, Thuringia, Baden-Württemberg
• 3.5%: Bavaria

Note: Since tax rates in Germany can change, it is advisable to regularly check the current rates or consult a lawyer or notary to determine the exact costs.