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.
Published by LDP Group, a firm near Munich that finds and manages rental property in Germany for expats and coordinates the financing with a licensed mortgage broker. To see what the figures mean for one flat, run a real client purchase with your own numbers.
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Book a free screening callThe 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 (approximated at 2.0%, the upper end of the usual 1.5 to 2% under the statutory GNotKG fee tables). Agent commissions vary by transaction and are excluded; on many new-build and developer projects buyers pay none. Rates as of July 2026, as set by each state's law.
Key findings
Bavaria remains the outlier at 3.5%, unchanged since 1997, so a Munich purchase carries a lower percentage of transaction costs than a flat in Duisburg (5.5% against 8.5%), although at prices four times higher the euro amount is larger. 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 1.0 point less than across the river in Wiesbaden (Hessen, 6.0%) for the same purchase price: €4,000 on €400,000.
For a standard profile German banks do not finance these costs: they lend against the property value, so the costs normally come 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, set by each state's rate law (the GrEStG itself sets only the 3.5% default rate), cross-checked against official state tables. Notary and land registry approximated at 2.0%, the upper end of the usual 1.5 to 2% under the statutory GNotKG fee tables. 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.
Reviewed by Nicholas Runtic and Abdelrahman Maged, co-founders of LDP Group, before publication.
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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 kept the 3.5% rate since 1997 and has been the lowest-rate state on its own since Saxony raised its rate in 2023.
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?
Not for a standard profile. German banks lend against the property value, not the transaction total, so for a standard profile transfer tax and notary fees are 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.