House purchase costs in Germany 2026: property transfer tax, notary, agent

Buying a house in Germany adds 7–15% in closing costs on top of the purchase price: property transfer tax 3.5–6.5% depending on the state, notary fees 1–1.5%, land registry 0.3–0.5%, and agent commission up to 3.57% for the buyer (split since December 2020). All costs must be paid from equity — German banks do not finance closing costs.

Germany's property transfer tax (Grunderwerbsteuer) is a state tax. Since the 2006 federalism reform, each of the 16 states sets its own rate. Bavaria and Saxony have kept the original rate of 3.5% and remain the cheapest. Most other states have raised their rates one or more times.

The tax base is the purchase price stated in the notarised contract. Separately listed moveable items (kitchen, built-in furniture) can be deducted from the tax base if they are clearly itemised and valued in the contract. Tax authorities check plausibility: inventory exceeding roughly 5–10% of the purchase price is typically challenged.

Due date: the tax arises at notarisation and must be paid within 4 weeks of the tax assessment. Without the clearance certificate from the tax authority, the notary cannot register the ownership change in the land register.

Exemptions: transfers between spouses, registered civil partners, and direct-line relatives (parents, children) are exempt under § 3 GrEStG. Siblings and friends pay the full rate. A first-buyer exemption has been discussed politically but is not enacted as of 2026.

Notarisation is mandatory for every property purchase in Germany (§ 311b BGB). Without it, the contract is void. Fees are governed by the GNotKG fee schedule and are uniform across Germany — there is no room to negotiate.

The main items are: drafting and notarising the purchase contract, entering the mortgage charge (Grundschuld) for the bank, and filing the land registry applications. Total notary costs typically run at 1.0–1.5% of the purchase price.

Land registry fees add a further 0.3–0.5%: one entry for the ownership transfer and one for the mortgage charge.

Example at €400,000 purchase price with €320,000 loan: notary costs approx. €5,000–6,000; land registry title entry approx. €1,200; land registry mortgage entry approx. €1,000. Total: approx. €7,200–8,200. Notaries are required to provide a cost estimate before the appointment.

Since 23 December 2020, Germany applies a buyer-protection rule: whoever engages the agent must pay at least half the commission. The old practice — where the seller engaged the agent but the buyer paid the full fee — is no longer permitted.

The commission is split 50/50 between seller and buyer. Market rates for the total commission are 5.95–7.14% incl. VAT. The buyer's share is therefore 2.975–3.57% incl. VAT.

Regional patterns: in Bavaria and NRW, a buyer share of 3.57% is standard. In Berlin and Brandenburg, dual-agency arrangements are common and both parties pay approx. 3.57% each. New-build projects sold directly by the developer typically involve no agent.

The table below shows total closing costs for a €400,000 purchase in two states, with and without an agent. The state of purchase and whether an agent is involved are the two biggest levers.

In NRW with an agent, closing costs reach approx. €48,000 (about 12% of the purchase price). In Bavaria without an agent, they are approx. €22,000 (about 5.5%). The €26,000 difference must come entirely from liquid equity.

German banks do not finance closing costs. They fall outside the lending base (Beleihungswert). This means all closing costs must be paid from available equity, on top of the equity stake the bank requires for the loan itself.

Standard practice: banks require at least 10–20% of the purchase price as equity for the property financing. Add closing costs on top. At €400,000 in NRW with an agent: bank equity 20% = €80,000; closing costs approx. €48,000. Total equity needed: approx. €128,000.

KfW lending programmes (e.g. KfW 297/298 for energy-efficient homes) cover the purchase price and renovation costs only — not closing costs.

Rule of thumb: plan for at least 20–25% of the purchase price as equity — roughly 10–20% for the bank plus 7–15% in closing costs. Less equity typically means a higher interest rate or loan refusal.

In Austria the property transfer tax is a flat 3.5% nationwide. In addition there is a land registry entry fee of 1.1% of the purchase price and a mortgage registration fee of 1.2% of the loan amount. Notary costs are similar to Germany at approx. 1–2%.

The agent commission in Austria is capped at 3.0% net (3.6% gross including VAT). The buyer-protection rule (Bestellerprinzip) applies in Austria to rental agreements since 2023 but not yet to purchases — buyers often still pay the full commission.

Direct comparison at €400,000: in Austria without an agent, closing costs are approx. 6–7% (€24,000–28,000). In NRW without an agent, approx. 8% (€32,000). With an agent and in a high-tax German state, Germany exceeds Austria.