Property Buyer's Guide

Buying Property in Germany: What It Actually Costs

Whether you're buying your first investment property or expanding your portfolio, understanding all the upfront and ongoing costs is essential. This guide walks you through every tax, fee, and expense you can expect — so there are no surprises on transfer day.

Last updated: 12 May 2026

Budget 8–10% above the purchase price for taxes and fees when buying property in Germany. The calculator below gives you an exact figure for your situation.

Calculate your exact costs →

Grunderwerbsteuer (Real Estate Transfer Tax)

Real estate transfer tax set by each state (Bundesland). Rates range from 3.5% (Bayern) to 6.5%. Applied as a flat percentage of the purchase price, regardless of property type. No progressive brackets, no foreign buyer surcharges, no first-time buyer relief. Select your state below for the exact rate.

Rates vary by region. Germany has 16 regions with different Grunderwerbsteuer (Real Estate Transfer Tax) rates. The rates shown below are the national default. Select your specific region in the calculator for accurate rates.

Grunderwerbsteuer (Real Estate Transfer Tax) is a flat rate of 5.00% of the purchase price.

Calculate your exact Grunderwerbsteuer (Real Estate Transfer Tax) →

What You'll Pay at Transfer

On top of the transfer tax, there are several legal and administrative fees that you need to budget for. Here's what to expect.

Transfer / conveyancing fees

These fees apply whether you're paying cash or taking out a bond.

Notary Fees (Notarkosten)

Regulated by federal law (Gerichts- und Notarkostengesetz). The notary handles the purchase contract, escrow account, and coordinates with the land registry. Fee is based on the purchase price on a sliding scale, typically ~1.5% for mid-market properties. Includes 19% MwSt.

1.50% of value

Land Registry (Grundbucheintragung)

Fee for recording the new ownership in the Grundbuch (land register). Regulated fee, typically ~0.5% of the purchase price.

0.50% of value

Bond registration fees (only if you're taking a bond)

If you're financing your purchase with a home loan, the bank's bond also needs to be registered at the Deeds Office. These are the fees for that process.

Mortgage Registration (Grundschuldeintragung)

Fee for registering the mortgage lien (Grundschuld) in the land registry. Approximately 0.3-0.5% of the loan amount.

0.40% of value

Notary Fees on Mortgage Deed

Separate notary fees for the mortgage deed (Grundschuldbestellungsurkunde). Approximately 0.5% of the loan amount.

0.50% of value

Property Valuation (Wertgutachten)

Independent property valuation required by the bank for mortgage approval. Typically EUR 300-600.

R 450,00

Agent Commission

Since December 2020, residential agent commission must be split equally between buyer and seller. Total commission is typically 5.95-7.14% (including 19% MwSt). The buyer's share shown here is ~3.57%. The split rule applies to consumer purchases of apartments and single-family houses. Commercial properties are exempt from the mandatory split. Rates are negotiable.

Paid by: both

MwSt applies: No

Typical rates:

Residential: 3.6%Apartment: 3.6%Commercial: 7.1%Airbnb: 3.6%

Calculate your exact purchase costs →

Your Monthly and Annual Costs as an Owner

The purchase price is just the beginning. As a property owner in Germany, you'll have recurring costs that eat into your rental income. Knowing these upfront helps you model realistic returns.

Property Tax (Grundsteuer)
Annual property tax based on the 2025 reform: assessed value (Grundsteuerwert) x assessment rate x municipal multiplier (Hebesatz). Varies enormously by municipality. Typical range: EUR 300-1,500/year for mid-market residential. Paid quarterly (Feb, May, Aug, Nov). Landlords cannot pass this to tenants since 2023.
annual
Typically escalates ~2% per year
Building Insurance (Wohngebaeudeversicherung)
Annual structural insurance covering fire, storm, water, and natural hazards. Typically EUR 120-150/year for an apartment, EUR 250-500/year for a house. Additional coverage (Elementarschadenversicherung) for flood/earthquake recommended.
annual
Typically escalates ~3% per year
Landlord Liability Insurance (Haus- und Grundbesitzerhaftpflicht)
Covers liability as property owner for injuries or damage on your property. Typically EUR 50-150/year. Strongly recommended for rental properties.
annual
Typically escalates ~2% per year
Maintenance Reserve (Instandhaltungsruecklage)
Annual budget for ongoing repairs and maintenance. Rule of thumb: EUR 7-12 per sqm/year, or roughly 1% of property value per year. For apartments, a portion is included in the Hausgeld as Instandhaltungsruecklage.
annual
Typically escalates ~3% per year

Additional costs for Apartment (Eigentumswohnung) properties

Hausgeld (Service Charges)
Monthly service charges covering building insurance, maintenance reserve, cleaning, management, and communal utilities. Typically EUR 2.50-4.00 per sqm/month (EUR 200-300/month for a 75 sqm apartment). A portion is non-recoverable from the tenant (Nicht umlagefaehig).
Charged per month

Additional costs for Short-Term Rental (Ferienwohnung) properties

City Tax / Tourist Tax (Bettensteuer)
Per-person per-night tax in many German cities. Berlin: 5% of net room price, Hamburg: EUR 1-3/night, Munich: EUR 5/night. Not all cities charge it. Platforms like Airbnb may collect it in some cities — set to 0 if the platform handles it.
STR Registration / Permit (Zweckentfremdungsgenehmigung)
Many German cities (Berlin, Munich, Hamburg, Frankfurt) require a permit to rent out a property short-term (Zweckentfremdungsverbot). Application fees vary (EUR 50-250). Berlin limits STR to 90 days/year without a permit. Fines for non-compliance can be up to EUR 500,000.
Charged annual

Don't forget escalation: Most recurring costs increase every year. Budget for 3–6% annual increases on rates, insurance, and maintenance. The ROI calculator lets you set a custom escalation rate for each expense.

When You Sell: Capital Gains Tax

Germany taxes capital gains at separate, lower rates than ordinary income. If you hold the property for more than 12 months, you qualify for long-term rates — which are significantly lower than short-term rates.

Long-term capital gains rates

Your income level	CGT rate
25	25%
35	35%
42	42%
45	45%

Model your CGT in the exit scenario calculator →

Costs of Selling Your Property

When you eventually sell, there are costs that come out of your sale proceeds before you see the cash. Here's what to factor in when modelling your exit.

Agent Commission (Seller Share)

Estate agent commission when selling. Since 2020, residential commission must be split equally between buyer and seller. Total commission is typically 5.95-7.14% (incl. 19% MwSt). Seller's share is roughly 3-3.57%.

3.6%

Mortgage Cancellation (Grundschuldloeschung)

Cost to delete the mortgage lien (Grundschuld) from the land registry. Includes notary fee and Grundbuch deletion fee. Typically EUR 300-700.

Only applies if you have a bond

R 500,00

Early Repayment Penalty (Vorfaelligkeitsentschaedigung)

If you sell before your fixed-rate period ends, the bank may charge a prepayment penalty. Can be substantial (thousands of EUR). Set to 0 if your fixed rate period has ended or if you plan to port the mortgage.

Only applies if you have a bond

R 0,00

Model your exit scenario in the calculator →

Buying Property in Germany as a Foreign National

Good news: Foreigners of any nationality can freely buy property in Germany. There are no restrictions, no foreign buyer surcharges, and no additional taxes. EU and non-EU citizens have equal property rights.

Here's what foreign buyers need to know:

1 No restrictions whatsoever: Germany has no foreign ownership restrictions. EU and non-EU nationals can buy any type of property — residential, commercial, or land — with the same rights as German citizens.
2 Same tax rates: Foreign buyers pay exactly the same Grunderwerbsteuer (transfer tax), notary fees, and closing costs as German residents. No surcharges of any kind.
3 Financing: German banks offer mortgages to non-residents, typically at 50-70% LTV (compared to 80-90% for residents). A slightly higher interest rate premium of 0.2-0.7% may apply. German credit history (SCHUFA) is not required but its absence increases down payment requirements.
4 Notary handles closing: The notary (Notar) handles the entire transaction — drafting the purchase contract, managing the escrow, and coordinating with the land registry. The process is highly regulated and transparent.
5 Tax liability: Non-residents are liable for German income tax on rental income and capital gains within the 10-year speculation period. You must file a German tax return (Steuererklaerung) for rental income.

Note: Buying property in Germany does not grant residency rights. Non-EU citizens are limited to 90 days in 180 within the Schengen area without a visa, regardless of property ownership.

Which Property Type Is Right for You?

Different property types come with different income potential, vacancy assumptions, and cost profiles. Here's how the main types compare in our calculator defaults for Germany.

Residential (Einfamilienhaus)

Agent commission: 3.57%
Vacancy rate: 3%
Rent escalation: 2.0% p.a.

Apartment (Eigentumswohnung)

Agent commission: 3.57%
Vacancy rate: 3%
Rent escalation: 2.0% p.a.

Extra costs: Hausgeld (Service Charges)

Commercial (Gewerbeimmobilie)

Agent commission: 7.14%
Vacancy rate: 8%
Rent escalation: 2.0% p.a.

Short-Term Rental (Ferienwohnung)

Agent commission: 3.57%
Vacancy rate: 30%
Rent escalation: 2.0% p.a.

Extra costs: City Tax / Tourist Tax (Bettensteuer), STR Registration / Permit (Zweckentfremdungsgenehmigung)

Ready to Run the Numbers?

Our free calculator puts all of these costs together in one place — transfer duty, closing fees, ongoing expenses, bond repayments, and your projected exit return. Takes about 2 minutes.

Use the free Germany ROI calculator →