🇩🇪 Germany

Property Taxes and Buying Costs in Germany

Budget 6–12% on top of the price for a resale apartment. On a 60 m² apartment in Berlin (about €354,000) that is roughly €21,240–€42,480.

Costs when you buy

Real estate transfer tax (Grunderwerbsteuer)
3.5–6.5% of price, set by federal state
Bavaria 3.5%; Berlin 6%; NRW, Brandenburg, Saarland and Schleswig-Holstein 6.5%.
Notary and land registry
approx. 1.5–2% of price
Agent commission
Usually split 50/50, up to approx. 3.57% for the buyer (incl. VAT)
VAT on new builds
Not charged; transfer tax applies instead

Costs while you own

Property tax (Grundsteuer)
Recalculated under the 2025 reform; set by municipality (Hebesatz), often a few hundred euros a year
Second-home tax (Zweitwohnungsteuer)
Many cities charge approx. 5–20% of annual net rent if you register a second home

Tax on rental income

Net rental income is taxed at German progressive income tax rates (plus solidarity surcharge where applicable), with deductions for interest, costs and depreciation.

Frequently Asked Questions

What taxes do you pay when buying property in Germany?↓
Real estate transfer tax (Grunderwerbsteuer): 3.5–6.5% of price, set by federal state. Notary and land registry: approx. 1.5–2% of price. Agent commission: Usually split 50/50, up to approx. 3.57% for the buyer (incl. VAT). VAT on new builds: Not charged; transfer tax applies instead.
What are total closing costs in Germany?↓
Typically 6–12% of the purchase price for a resale apartment.
How is rental income taxed in Germany for non-residents?↓
Net rental income is taxed at German progressive income tax rates (plus solidarity surcharge where applicable), with deductions for interest, costs and depreciation.
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Property prices in Germany →Apartments for sale in Germany →Rental yield calculator →

Last reviewed 2026-10. General information, not tax or legal advice: rates change and often depend on region and buyer status, so confirm with a local notary, lawyer or tax adviser. Sources: rechner-hub: Grunderwerbsteuer nach Bundesland 2026.