Grunderwerbsteuer
Property Transfer Tax. The one-off state tax on every property purchase in Germany, due shortly after notarisation. Rates are set per Bundesland and range from 3.5% to 6.5% of the purchase price.
Current rates (2026): Bavaria 3.5% · Baden-Württemberg, Lower Saxony, Rhineland-Palatinate, Saxony-Anhalt, Thuringia 5.0% · Bremen, Hamburg, Saxony 5.5% · Berlin, Hesse, Mecklenburg-Vorpommern 6.0% · Brandenburg, NRW, Saarland, Schleswig-Holstein 6.5%. Thuringia is the only state ever to cut its rate (from 6.5%, 2024); Bremen raised to 5.5% in July 2025.
The land registry will not transfer ownership until the tax office confirms payment (Unbedenklichkeitsbescheinigung). Genuinely movable inventory (e.g. a fitted kitchen) can be priced separately and escapes the tax. For rented property, the tax joins the depreciation (AfA) basis.
Frequently asked questions
How much is property transfer tax in Germany?
Between 3.5% and 6.5% of the purchase price, set by each federal state. Bavaria is lowest at 3.5%, while Brandenburg, North Rhine-Westphalia, Saarland and Schleswig-Holstein charge 6.5%. On a €400,000 purchase that is a €12,000 difference for the identical property.
Which German state has the lowest property transfer tax?
Bavaria, at 3.5%, unchanged since 2011. On a €400,000 purchase that is €14,000. The next lowest band is 5.0%, covering Baden-Württemberg, Lower Saxony, Rhineland-Palatinate, Saxony-Anhalt and Thuringia.
Do foreign buyers pay the same property transfer tax as Germans?
Yes. The tax depends only on where the property is located, never on the buyer's nationality or residency. There is no surcharge for non-residents and no exemption for them either.
When is the property transfer tax due?
Shortly after notarisation. The tax office issues an assessment, and the land registry will not transfer ownership until payment is confirmed through the Unbedenklichkeitsbescheinigung. The tax must be paid from equity, German banks do not finance it.
Can I reduce the property transfer tax when buying an apartment?
Genuinely movable inventory such as a fitted kitchen can be priced separately in the contract and is not taxed. Beyond that the base is the notarised purchase price. For a rented property the tax is not lost: it joins the depreciation basis.
Who pays the property transfer tax, buyer or seller?
Both are jointly liable by law, but every standard contract assigns payment to the buyer, and the tax office addresses the assessment accordingly.
Is German property transfer tax deductible?
Not as an immediate deduction, but not lost either on a let property: it counts as an incidental acquisition cost and is written off through AfA together with the building value. For owner-occupied property it is not deductible at all.
Does property transfer tax apply to a rent-to-own contract?
Yes. Under § 1 Abs. 1 Nr. 1 GrEStG it arises with the contract creating the claim to transfer, so a classic Mietkauf triggers it at notarisation. For an Optionskauf it arises when the option is exercised, under § 14 Nr. 1 GrEStG.