Property Transfer Tax in Germany: Rates for All 16 States
Germany's property transfer tax (Grunderwerbsteuer) ranges from 3.5% to 6.5% of the purchase price, depending on which federal state the property is located in. Bavaria and Saxony charge the lowest rate (3.5%), while Brandenburg, North Rhine-Westphalia, Saarland, Schleswig-Holstein and Thuringia charge the highest (6.5%). Payment is due within 4 weeks of the tax assessment notice.
Ahmet Parlak
Mortgage & Property Finance Expert, Vienna
Quick answer: Property transfer tax in Germany
- Property transfer tax: 3.5–6.5% of the purchase price depending on the federal state.
- Lowest rate: Bavaria and Saxony, 3.5% each.
- Highest rate: Brandenburg, NRW, Saarland, Schleswig-Holstein, Thuringia, 6.5% each.
- Due within 4 weeks of the tax assessment notice from the tax office.
- Without payment: no clearance certificate, no land register entry.
Last updated: 2026-03-16
Property Transfer Tax Rates for All 16 Federal States
The applicable rate depends on the location of the property – not the buyer's place of residence. A buyer living in Bavaria who purchases an apartment in Berlin pays Berlin's 6.0% rate.
| Federal State | Tax Rate |
|---|---|
| Bavaria | 3.5% |
| Saxony | 3.5% |
| Hamburg | 5.5% |
| Baden-Württemberg | 5.0% |
| Berlin | 6.0% |
| Brandenburg | 6.5% |
| Bremen | 5.0% |
| Hesse | 6.0% |
| Mecklenburg-Vorpommern | 6.0% |
| Lower Saxony | 5.0% |
| North Rhine-Westphalia | 6.5% |
| Rhineland-Palatinate | 5.0% |
| Saarland | 6.5% |
| Saxony-Anhalt | 5.0% |
| Schleswig-Holstein | 6.5% |
| Thuringia | 6.5% |
Calculating Property Transfer Tax
The assessment base is the purchase price stated in the notarial contract. Formula: purchase price x tax rate = property transfer tax.
Example NRW: 400,000 x 6.5% = 26,000 euros.
Example Bavaria: 400,000 x 3.5% = 14,000 euros.
The difference between Bavaria and NRW on the same purchase price is 12,000 euros.
- Separately listed furnishings or fitted fixtures can be deducted from the purchase price if itemised in the notarial contract or a separate invoice.
- Near-acquisition production costs are not part of the property transfer tax assessment base.
- The tax office checks the purchase price for plausibility; prices well below market value may prompt enquiries.
Due Date and Payment
The tax office issues a tax assessment notice after the purchase contract is notarised – typically 4 to 6 weeks after the notary appointment. Payment is due within 4 weeks of receiving the notice.
- Tax assessment notice: issued by the tax office approx. 4–6 weeks after notarisation.
- Payment deadline: 4 weeks from receipt of the notice.
- Clearance certificate (Unbedenklichkeitsbescheinigung): proof of payment required by the land registry office before ownership can be transferred.
- Without the clearance certificate, the buyer cannot be registered as owner in the land register.
- Late payment attracts surcharges (1% per commenced month under § 240 AO).
Exemptions
The Real Estate Transfer Tax Act (GrEStG) provides exemptions for certain acquisition transactions (§ 3 GrEStG).
- Inheritance and gifts: exempt under § 3 No. 2 GrEStG.
- Purchase between spouses (or registered civil partners): exempt.
- Purchase between parents and children (direct line of ascent and descent): exempt.
- Siblings: not exempt – property transfer tax applies between siblings.
- First-time purchase of a new-build property for owner-occupation: no nationwide exemption (unlike Austria).
- Share deals: since 2021, the tax applies from a 90% stake transfer – the legislature lowered the previous 95% threshold to limit avoidance structures.
Comparison: Germany vs. Austria
Germany's rate varies significantly by federal state. Austria applies a uniform rate nationwide.
| Feature | Germany | Austria |
|---|---|---|
| Tax rate | 3.5–6.5% (by state) | 3.5% uniform |
| Land register fee | not charged separately | 1.1% additional |
| Total burden AT | – | 4.6% (3.5% + 1.1%) |
| Cheaper than AT | Bavaria, Saxony (3.5%) | – |
| More expensive than AT | Brandenburg, NRW, SL, SH, TH (6.5%) | – |
| Family exemption | Spouses, direct-line relatives | Similar, with restrictions |
- Bavaria and Saxony (3.5%) are comparable to Austria (3.5%), but Austria also charges a 1.1% land register fee – making the total 4.6%.
- In high-rate states (6.5%), Germany is significantly more expensive than Austria.
Reducing the Tax Burden: What Works
Legal options for reducing property transfer tax are limited but exist.
- State selection: for properties near state borders, compare rates – between Bavaria (3.5%) and NRW (6.5%) the difference on 400,000 euros is 12,000 euros.
- Deduct furnishings: notarially documented fixtures (kitchen, fitted wardrobes) can be deducted from the purchase price to reduce the assessment base.
- Share deals: acquiring via company shares can be tax-free, but the threshold has been 90% since 2021 (previously 95%).
- Family exemption: purchase via close relatives (parents, children, spouse) is exempt under § 3 GrEStG.
- Challenge the assessment: errors in the notice (wrong purchase price, wrong base) can be contested within the one-month objection period.
Property Transfer Tax FAQ
Within 4 weeks of the tax assessment notice from the tax office, which is typically issued 4–8 weeks after notarisation.
Bavaria and Saxony at 3.5% each – the lowest rate in Germany. On a 400,000 euro purchase price that is 14,000 euros, compared with up to 26,000 euros in NRW.
Not for owner-occupied properties. For rental properties yes – as acquisition incidental costs, capitalised and tax-effective over the depreciation period.
Yes – property transfer tax applies to the acquisition of land. Under a developer contract it is calculated on the total purchase price (land and building combined).
No – gifts and inheritances are exempt under § 3 GrEStG. Purchases between spouses and direct-line relatives (parents–children) are also exempt.
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