Grunderwerbsteuer (property transfer tax) is a one-time state tax due when you buy real estate in Germany. As of 2026, the rate ranges from 3.5% of the purchase price in Bavaria to 6.5% in North Rhine-Westphalia, Brandenburg, Saarland, and Schleswig-Holstein. It's one of the largest upfront costs after your down payment.
Tax Rates by State (Bundesland), 2026
| State (Bundesland) | Rate | Note |
|---|---|---|
| Baden-Württemberg | 5.0% | |
| Bavaria (Bayern) | 3.5% | Only state still at the original 3.5% |
| Berlin | 6.0% | |
| Brandenburg | 6.5% | |
| Bremen | 5.5% | Raised from 5.0% on July 1, 2025 |
| Hamburg | 5.5% | Raised from 4.5% in 2023 |
| Hesse (Hessen) | 6.0% | |
| Mecklenburg-Vorpommern | 6.0% | |
| Lower Saxony (Niedersachsen) | 5.0% | |
| North Rhine-Westphalia (NRW) | 6.5% | |
| Rhineland-Palatinate (Rheinland-Pfalz) | 5.0% | |
| Saarland | 6.5% | |
| Saxony (Sachsen) | 5.5% | Raised from 3.5% in 2023 |
| Saxony-Anhalt (Sachsen-Anhalt) | 5.0% | |
| Schleswig-Holstein | 6.5% | |
| Thuringia (Thüringen) | 5.0% | Lowered from 6.5% on January 1, 2024 |
Real Cost Example
€450,000 property in Berlin (6.0% rate):
- Purchase price:€450,000
- Transfer tax due:€27,000
This is due within 4-6 weeks of notary appointment and must be paid before ownership transfers.
Key Facts
- Based on purchase price: Calculated on the full property price (not just building value)
- Not tax-deductible: Unlike mortgage interest, transfer tax cannot be deducted from rental income
- Due before registration: Must be paid before property is registered in your name
- Buyer always pays: By law, transfer tax is always the buyer's responsibility
Strategic Consideration
Location matters! A €450k property in Bavaria costs €15,750 in transfer tax, while the same property in NRW costs €29,250—a difference of €13,500. Consider this when comparing markets.