Taxes & fees for internationals

Property taxes in Germany: Grunderwerbsteuer & fees

When you buy land or a house in Germany you pay a one-off real-estate transfer tax (Grunderwerbsteuer) of 3.5–6.5% depending on the federal state, plus notary and land-registry fees. This guide explains those costs, the annual property tax (Grundsteuer) and why living in your own home is not taxed.

Request offers Back to buying as a non-resident

Grunderwerbsteuer: the real-estate transfer tax

Grunderwerbsteuer is a one-off tax charged when you buy land or a property. Each of Germany's 16 federal states sets its own rate, and as of 2026 these range from 3.5% to 6.5% of the purchase price. The tax falls due after the notarised purchase, and the local court will only register you as the new owner once the tax office issues a clearance certificate (Unbedenklichkeitsbescheinigung) confirming payment. The legal basis is the Grunderwerbsteuergesetz (GrEStG).

Transfer-tax rates by state (examples, as of 2026)

Federal state	Grunderwerbsteuer
Bavaria (Bayern)	3.5%
Saxony (Sachsen)	3.5%
Hamburg	5.5%
North Rhine-Westphalia	6.5%
Brandenburg	6.5%
Schleswig-Holstein	6.5%

Illustrative selection for 2026, without warranty. Several other states charge 5.0–6.5%. States can change their rates — confirm the current figure for the state where your plot lies.

The other purchase and ownership costs

Grunderwerbsteuer 3.5–6.5%

One-off real-estate transfer tax, set by each federal state. Due after the notarised purchase; ownership is registered once it is paid.

Notary & land registry ~1.5–2%

Combined notary and land-registry (Grundbuch) fees for certifying and registering the purchase, as a share of the price.

Grundsteuer (annual)

Yearly property tax paid to the municipality, based on a reformed property value and the local rate (Hebesatz) from 2025 onwards.

Altogether, ancillary purchase costs in Germany typically add up to around 9–12% of the price. All house and total prices shown on this site are stated excl. plot and ancillary costs.

Grundsteuer and no tax on your own home

Grundsteuer is the annual property tax paid to the municipality by the owner. It is separate from the one-off transfer tax. Following Germany's property-tax reform, the amount from 2025 onwards is calculated from a reformed property value multiplied by a municipal rate (Hebesatz), so the figure varies by municipality and property; as of 2026 it is usually a modest yearly cost. The legal basis is the Grundsteuergesetz (GrStG).

Importantly, Germany does not tax the notional rental value of a home you occupy yourself — there is no imputed rental income tax on owner-occupiers. Income tax only becomes relevant if you rent the property out. For financing these costs alongside the house price, see our mortgage guide for expats.

Plan your budget — request prefab offers

Know your taxes and fees, then get matched free and non-binding with up to 3 prefab manufacturers serving international clients in Germany.

Free & non-binding
·
SSL-encrypted
·
Reply within 24 h

Step 1 of 5 · about 25 seconds left until your offers

Which type of prefab house fits your plans?

Personal reply within 24 hours

140 manufacturers in our editorial in-depth comparison
150+ manufacturers covered in our market overview
Free & non-binding — nothing shared without your OK
SSL/TLS-encrypted transfer, GDPR-compliant

FAQ: property taxes & Grunderwerbsteuer

Answers on the transfer tax by state, notary and registry fees, the annual Grundsteuer and owner-occupier treatment — as of 2026.

What is Grunderwerbsteuer?

Grunderwerbsteuer is Germany's real-estate transfer tax, a one-off tax you pay when you buy land or property. The rate is set by each federal state and, as of 2026, ranges from 3.5% to 6.5% of the purchase price. It is due after the notarised purchase, and the local court only registers you as the new owner once the tax office confirms it has been paid (the tax clearance certificate, Unbedenklichkeitsbescheinigung).

How much is the transfer tax in each state?

As of 2026, Bavaria and Saxony levy the lowest rate at 3.5%. Several states charge 5.0% (for example Baden-Württemberg and Rhineland-Palatinate), Hamburg around 5.5%, and a number of states — including North Rhine-Westphalia, Brandenburg, Schleswig-Holstein, Saarland and Thuringia — charge the maximum of 6.5%. States can adjust their rates, so confirm the current figure for the state where your plot lies before you budget.

What other purchase fees apply?

On top of the transfer tax, expect notary fees and land-registry (Grundbuch) fees together of roughly 1.5–2% of the purchase price, and an estate-agent commission where an agent is involved (often shared between buyer and seller, commonly around 3–3.57% each including VAT). Altogether, ancillary purchase costs in Germany typically add up to around 9–12% of the price — always excl. the plot and construction themselves.

What is Grundsteuer?

Grundsteuer is the annual property tax paid to the municipality by the owner of land and buildings. It is separate from the one-off transfer tax. Following Germany's property-tax reform, the amount from 2025 onwards is calculated from a reformed property value multiplied by a municipal rate (Hebesatz), so the exact figure depends on your municipality and property. As of 2026 it is usually a modest yearly cost compared with the purchase taxes.

Is there a tax on living in my own home?

No. Germany does not levy an imputed rental tax on owner-occupied homes. If you live in the property yourself, there is no income tax on a notional rent. Income tax only becomes relevant if you rent the property out. This differs from some other countries that tax the imagined rental value of a home you occupy yourself.

Can I deduct these taxes?

For an owner-occupied home, purchase taxes and fees are generally not tax-deductible; they simply add to your acquisition cost. If you buy to rent out, some costs may be depreciated or deducted against rental income under German tax rules. Because treatment depends on how you use the property and your overall situation, consult a German tax adviser (Steuerberater) for anything binding.

As of 2026, general information only, provided without warranty. Tax rates and rules can change and depend on the state and your situation. Prefabricated House is an independent comparison portal and does not provide tax advice. For binding guidance, consult a German tax adviser (Steuerberater).