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

Buying a home in Germany often adds roughly 5–12% in closing costs, depending on the state and agent arrangement. Paying them from equity generally improves pricing and resilience, but some lenders may assess full or 110% financing for strong applicants.

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 is the only state that has kept the original rate of 3.5% and remains the cheapest. Most other states have changed their rates one or more times — most recently Saxony (5.5% since 1 Jan 2023), Thuringia (cut to 5.0% since 1 Jan 2024) and Bremen (5.5% since 1 Jul 2025). Table as of 26 Sep 2026, checked against state legislation and state finance ministry announcements.

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, sections 656c and 656d BGB protect consumer buyers of apartments and single-family homes. When the agent acts for both parties, both must agree to pay the same amount. If only one party engaged the agent, no more than half of that party's fee may be shifted to the other party.

A 50/50 split is therefore common, but it is not automatic in every arrangement. A buyer who alone engages an agent may have a different contractual obligation. Always check the mandate and fee agreement for the specific property.

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 materially increases the equity normally needed.

Lenders often expect buyers to cover closing costs from equity because those costs do not increase the property's collateral value. Some institutions may still assess full or 110% financing for applicants with strong income and creditworthiness.

There is no universal statutory minimum equity ratio. For prudent planning, Germany's consumer advice service recommends 20–30% of the purchase price plus closing costs, while the actual lending decision depends on income, collateral, property and risk profile.

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.