How Grunderwerbsteuer Works in Germany
Grunderwerbsteuer (real estate transfer tax) is a one-off tax due whenever ownership of land or property in Germany changes hands. Since a 2006 federalism reform, each of Germany's 16 federal states sets its own rate — and most have raised theirs since. Rates now range from 3.5% in Bavaria to 6.5% in four states. On a €400,000 property, that difference alone is worth €12,000.
📝 Grunderwerbsteuer Rates by State (2026)
| State | Rate |
|---|---|
| Bavaria (Bayern) | 3.5% |
| Baden-Württemberg | 5.0% |
| Bremen | 5.0% |
| Lower Saxony (Niedersachsen) | 5.0% |
| Rhineland-Palatinate (Rheinland-Pfalz) | 5.0% |
| Saxony-Anhalt (Sachsen-Anhalt) | 5.0% |
| Thuringia (Thüringen) | 5.0% |
| Hamburg | 5.5% |
| Saxony (Sachsen) | 5.5% |
| Berlin | 6.0% |
| Hesse (Hessen) | 6.0% |
| Mecklenburg-Vorpommern | 6.0% |
| Brandenburg | 6.5% |
| North Rhine-Westphalia (NRW) | 6.5% |
| Saarland | 6.5% |
| Schleswig-Holstein | 6.5% |
Bavaria has never raised its rate since states gained control in 2006. Thuringia is the only state to have cut its rate, dropping from 6.5% to 5.0% on 1 January 2024. Saxony and Hamburg both raised their rates to 5.5% on 1 January 2023.
📝 Who Pays, and When
By law, both buyer and seller are jointly liable for Grunderwerbsteuer, but almost every purchase contract (around 99% of cases) assigns the tax entirely to the buyer. The Finanzamt sends a tax assessment (Steuerbescheid) after the notarized contract is registered, and payment is typically due within one month. The land registry (Grundbuchamt) won't finalize the ownership transfer until the tax is paid and a clearance certificate (Unbedenklichkeitsbescheinigung) is issued.
Transactions below €2,500 are fully exempt (a Freigrenze, not a Freibetrag — once you exceed it, the whole amount is taxed, not just the excess).
💡 Legal Ways to Reduce the Taxable Amount
Movable items included in a sale — a fitted kitchen (Einbauküche), furniture, a garden shed, a sauna, or high-quality outdoor fixtures — are not part of the property itself. Listing these separately in the purchase contract, at a reasonable market value, reduces the base the transfer tax is calculated on. This is a widely used, fully legal practice, though the values must be realistic — the Finanzamt can challenge inflated figures.
💡 Example Calculation
Scenario: €400,000 apartment in Berlin (6.0%), with a €5,000 fitted kitchen listed separately.
1. Taxable amount: €400,000 − €5,000 = €395,000
2. Grunderwerbsteuer: €395,000 × 6.0% = €23,700
3. Compare to Bavaria at 3.5% on the same taxable amount: €395,000 × 3.5% = €13,825 — a €9,875 difference for an identical purchase.
4. Add notary and land registry fees (~2%): approximately €7,900 more, bringing total closing costs (excluding agent commission) to around €31,600 in Berlin.
Note: Agent commission (Maklerprovision), typically 3–7% and now usually split 50/50 between buyer and seller under the Bestellerprinzip rules, is not included above.
⚠️ Important Notes
- This calculator provides estimates only based on 2026 state-level Grunderwerbsteuer rates.
- The ~2% notary and land registry estimate is a common rule-of-thumb range — actual fees follow the statutory GNotKG fee schedule and vary with purchase price and complexity.
- Agent commission (Maklerprovision) is not included and varies by region and negotiation.
- Certain transactions are exempt or reduced (transfers between spouses, direct relatives, inheritance, or gifts) — this calculator assumes a standard arm's-length purchase.
- Rates are set independently by each state and are reviewed periodically — always confirm the current rate with your notary or local Finanzamt before budgeting.
- For official information, see the Bundesministerium der Finanzen.