Purchase Cost Ranking 2026: All 16 German States
German transaction costs are set by where you buy, not what you buy. Counting the two unavoidable blocks, state transfer tax (Grunderwerbsteuer) and notary plus land registry (about 2.0%), a €400,000 purchase costs €22,000 in fees in Bayern but €34,000 in Schleswig-Holstein and three other states: a gap of €12,000 for the identical property.
The ranking: transfer tax plus notary by state (€400,000 example)
| # | State | Transfer tax | Tax + notary* | On €400,000 |
|---|---|---|---|---|
| 1 | Bayern | 3.5% | 5.5% | €22,000 |
| 2 | Baden-Württemberg | 5.0% | 7.0% | €28,000 |
| 3 | Niedersachsen | 5.0% | 7.0% | €28,000 |
| 4 | Rheinland-Pfalz | 5.0% | 7.0% | €28,000 |
| 5 | Sachsen-Anhalt | 5.0% | 7.0% | €28,000 |
| 6 | Thüringen | 5.0% | 7.0% | €28,000 |
| 7 | Bremen | 5.5% | 7.5% | €30,000 |
| 8 | Hamburg | 5.5% | 7.5% | €30,000 |
| 9 | Sachsen | 5.5% | 7.5% | €30,000 |
| 10 | Berlin | 6.0% | 8.0% | €32,000 |
| 11 | Hessen | 6.0% | 8.0% | €32,000 |
| 12 | Mecklenburg-Vorpommern | 6.0% | 8.0% | €32,000 |
| 13 | Brandenburg | 6.5% | 8.5% | €34,000 |
| 14 | Nordrhein-Westfalen | 6.5% | 8.5% | €34,000 |
| 15 | Saarland | 6.5% | 8.5% | €34,000 |
| 16 | Schleswig-Holstein | 6.5% | 8.5% | €34,000 |
*Transfer tax plus notary and land registry (approx. 2.0%, statutory per GNotKG). Agent commissions vary by transaction and are excluded; on many new-build and developer projects buyers pay none. Rates as of July 2026, per GrEStG.
Key findings
Bavaria remains the outlier at 3.5%, unchanged since 2011, making Munich purchases cheaper to transact than a flat in Duisburg despite prices four times higher. Four states (Nordrhein-Westfalen, Brandenburg, Saarland, Schleswig-Holstein) charge the maximum 6.5%.
The tax is pure location arbitrage: state borders separate identical cost structures. A buyer in Mainz (Rheinland-Pfalz, 5.0%) pays 1.5 points less than across the river in Wiesbaden (Hessen, 6.0%) for the same purchase price.
None of these costs are financeable: German banks lend against the property value only, so every euro comes from equity. For non-residents, who already need 40-50% down, the state choice moves the total cash requirement by five figures.
For landlords there is partial relief: on rented property, transfer tax and notary fees join the AfA depreciation basis and reduce taxable rental income over time. Details per city in our city reports, exact numbers for your case in the Purchase Cost Calculator.
Methodology and sources
Transfer tax (Grunderwerbsteuer) rates per Bundesland as of July 2026, legal basis GrEStG, cross-checked against official state tables. Notary and land registry approximated at the statutory 2.0% (GNotKG). Agent commissions are excluded: they vary by transaction and are frequently zero on developer projects. Example basis: €400,000 purchase price. Background on all cost components in the glossary entry on Kaufnebenkosten (purchase costs). The underlying dataset powers all LDP Insights pages.
Citation & press use
Figures may be quoted freely with attribution to "Purchase Cost Ranking 2026: All 16 German States, LDP Group" and a link to this page. Press enquiries: info@ldp.group.
Frequently asked questions
Which German state has the lowest property purchase costs in 2026?
Bayern, with 3.5% transfer tax and about 5.5% total for tax plus notary and land registry. It has held the lowest rate since 2011.
Which states charge the highest transfer tax?
Nordrhein-Westfalen, Brandenburg, Saarland and Schleswig-Holstein at 6.5% each, bringing tax plus notary to about 8.5% of the purchase price.
Can purchase costs be financed with the mortgage?
Practically never. German banks lend against the property value, not the transaction total, so transfer tax and notary fees must be paid from equity on top of the down payment.
Are there legal ways to reduce the transfer tax?
Genuinely movable inventory such as a fitted kitchen can be priced separately in the Kaufvertrag and escapes the tax. On rented property the costs at least join the AfA depreciation basis.