Additional Purchase Costs When Buying Property: What You Need to Know
When you buy a property in Germany, significant additional costs arise on top of the purchase price. These additional purchase costs typically amount to between 4.5% and 15% of the purchase price, depending on the state and whether a broker is involved - for a property worth €400,000, that is roughly €18,000 to €60,000.
The additional costs consist of the property transfer tax, notary fees, land registry fees and, if applicable, broker commission. Since banks usually only finance the purchase price, these costs must be paid from your own equity.
The four cost blocks of additional purchase costs
- Property transfer tax
- A state tax ranging from 3.5% (Bavaria) to 6.5% (e.g. North Rhine-Westphalia). The largest item among the additional costs.
- Notary fees
- Approx. 0.6-0.8% for notarising the purchase contract under GNotKG fee table B (incl. 19% VAT), decreasing as a percentage as the price rises.
- Land registry fees
- Approx. 0.25-0.35% for registering the new owner and the priority notice (no VAT). A mortgage lien for financing costs extra.
- Broker commission
- If a broker is involved: 3-7% depending on the state, often split between buyer and seller since 2020.