Legal sources
Buying a home in Germany costs more than the price. The buyer pays the real estate transfer tax (Grunderwerbsteuer) at their state's rate, the notary (Notar) who must record the contract, the land register (Grundbuch) for the owner entry and, when a broker is involved, a share of the broker's commission (Maklerprovision). With a loan, the lender's land charge (Grundschuld) adds a notary fee and a land register fee. Lenders rarely lend for these purchase costs (Kaufnebenkosten), so buyers usually pay them from savings. Each default below names its law or regulation, the section and the date it was last checked, or is marked as market practice. Law names and section numbers stay in German so you can find the official text.
| Item | Document | Provision | Last verified | Link |
|---|---|---|---|---|
| Real estate transfer tax (Grunderwerbsteuer) | Source: GrEStG; Land rate laws under Art. 105(2a) sentence 2 Basic LawGrEStG; Land rate laws under Art. 105(2a) sentence 2 Basic Law | Provision: GrEStG §8(1), §9(1) Nr. 1 (base: the price incl. obligations the buyer takes over); §13 Nr. 1 (both parties owe the tax); §22(1) (the buyer is entered in the land register only after the tax office certifies there is no tax objection)GrEStG §8(1), §9(1) Nr. 1 (base: the price incl. obligations the buyer takes over); §13 Nr. 1 (both parties owe the tax); §22(1) (the buyer is entered in the land register only after the tax office certifies there is no tax objection) | Last verified: Oct 8, 2026Oct 8, 2026 | Read the text (opens in a new tab) |
| Notary (Notar): purchase contract | Source: GNotKGGNotKG | Provision: §34(1)–(2), (4) (rounded to the cent, half up), (5) (minimum fee 15); Table B§34(1)–(2), (4) (rounded to the cent, half up), (5) (minimum fee 15); Table B | Last verified: Oct 8, 2026Oct 8, 2026 | Read the text (opens in a new tab) |
| Notary (Notar): purchase contract | Source: GNotKG, KVGNotKG, KV | Provision: KV 21100; BGB §448(2) (the buyer bears the cost of notarising the contract and of the land register entries)KV 21100; BGB §448(2) (the buyer bears the cost of notarising the contract and of the land register entries) | Last verified: Oct 8, 2026Oct 8, 2026 | Read the text (opens in a new tab) |
| Notary's expenses | Source: GNotKG, KVGNotKG, KV | Provision: KV 32005 and followingKV 32005 and following | Last verified: Oct 8, 2026Oct 8, 2026 | Read the text (opens in a new tab) |
| Land register (Grundbuch): owner entry | Source: GNotKG, KVGNotKG, KV | Provision: KV 14110KV 14110 | Last verified: Oct 8, 2026Oct 8, 2026 | Read the text (opens in a new tab) |
| Land register: deleting the priority notice (Auflassungsvormerkung) | Source: GNotKG, KVGNotKG, KV | Provision: KV 14152KV 14152 | Last verified: Oct 8, 2026Oct 8, 2026 | Read the text (opens in a new tab) |
| Notary: land charge (Grundschuld) for the lender | Source: GNotKG, KVGNotKG, KV | Provision: KV 21200KV 21200 | Last verified: Oct 8, 2026Oct 8, 2026 | Read the text (opens in a new tab) |
| Land register: land charge (Grundschuld) entry | Source: GNotKG, KVGNotKG, KV | Provision: KV 14121 (a certificated land charge, KV 14120, is 1.3)KV 14121 (a certificated land charge, KV 14120, is 1.3) | Last verified: Oct 8, 2026Oct 8, 2026 | Read the text (opens in a new tab) |
| Broker's commission (Maklerprovision), buyer's share | Market convention, no legal document | Last verified: Oct 8, 2026Oct 8, 2026 | ||
| Broker's commission (Maklerprovision), seller's share | Market convention, no legal document | Last verified: Oct 8, 2026Oct 8, 2026 | ||
| Fixed-rate period (Zinsbindung), example | Market convention, no legal document | Last verified: Oct 8, 2026Oct 8, 2026 | ||
| When a borrower may end a fixed-rate loan without compensation | Source: BGBBGB | Provision: §489(1) Nr. 2§489(1) Nr. 2 | Last verified: Oct 8, 2026Oct 8, 2026 | Read the text (opens in a new tab) |
| Prepayment penalty | Market convention, no legal document | Last verified: Oct 8, 2026Oct 8, 2026 | ||
| Special repayment (Sondertilgung) allowed each year | Market convention, no legal document | Last verified: Oct 8, 2026Oct 8, 2026 | ||
| Initial repayment rate per year, example | Market convention, no legal document | Last verified: Oct 8, 2026Oct 8, 2026 | ||
| Maximum debt-to-income ratio (DTI), on net income | Market convention, no legal document | Last verified: Oct 8, 2026Oct 8, 2026 | ||
| Usual maximum loan-to-value (LTV) | Market convention, no legal document | Last verified: Oct 8, 2026Oct 8, 2026 | ||
| Real estate transfer tax: rounding down to whole euros | Source: GrEStGGrEStG | Provision: §11(2): "Die Steuer ist auf volle Euro nach unten abzurunden."§11(2): "Die Steuer ist auf volle Euro nach unten abzurunden." | Last verified: Oct 8, 2026Oct 8, 2026 | Read the text (opens in a new tab) |
| Real estate transfer tax: price at or below which no tax is due | Source: GrEStGGrEStG | Provision: §3 Nr. 1§3 Nr. 1 | Last verified: Oct 8, 2026Oct 8, 2026 | Read the text (opens in a new tab) |
| Notary: completing the transfer (Vollzug) | Source: GNotKG, KVGNotKG, KV | Provision: KV 22110KV 22110 | Last verified: Oct 8, 2026Oct 8, 2026 | Read the text (opens in a new tab) |
| Notary: checking payment and releasing the transfer (Betreuung) | Source: GNotKG, KVGNotKG, KV | Provision: KV 22200KV 22200 | Last verified: Oct 8, 2026Oct 8, 2026 | Read the text (opens in a new tab) |
| VAT on the notary's fees | Source: UStG; GNotKG, KVUStG; GNotKG, KV | Provision: UStG §12(1); KV 32014UStG §12(1); KV 32014 | Last verified: Oct 8, 2026Oct 8, 2026 | Read the text (opens in a new tab) |
| Land register: priority notice of conveyance (Auflassungsvormerkung) | Source: GNotKG, KVGNotKG, KV | Provision: KV 14150KV 14150 | Last verified: Oct 8, 2026Oct 8, 2026 | Read the text (opens in a new tab) |
| Property tax (Grundsteuer) per year | Source: GrStGGrStG | Provision: §13 (base amount = a per-mille rate, the Steuermesszahl, on the assessed value); §25(1) (each municipality sets its multiplier, the Hebesatz)§13 (base amount = a per-mille rate, the Steuermesszahl, on the assessed value); §25(1) (each municipality sets its multiplier, the Hebesatz) | Last verified: Oct 8, 2026Oct 8, 2026 | Read the text (opens in a new tab) |
| Condominium service charge (Hausgeld) per month | Source: WEGWEG | Provision: §28(1) (the owners decide the advance payments on the yearly budget, the Wirtschaftsplan)§28(1) (the owners decide the advance payments on the yearly budget, the Wirtschaftsplan) | Last verified: Oct 8, 2026Oct 8, 2026 | Read the text (opens in a new tab) |
| Building insurance per year | Market convention, no legal document | Last verified: Oct 8, 2026Oct 8, 2026 | ||
| Value-added tax (VAT) on rent: none on letting a home | Source: UStGUStG | Provision: §4 Nr. 12 a§4 Nr. 12 a | Last verified: Oct 8, 2026Oct 8, 2026 | Read the text (opens in a new tab) |
| Personal income tax on rent, example rate | Market convention, no legal document | Last verified: Oct 8, 2026Oct 8, 2026 | ||
| Tax threshold for rental income: none | Market convention, no legal document | Last verified: Oct 8, 2026Oct 8, 2026 | ||
| Ten-year holding period (Spekulationsfrist) | Source: EStGEStG | Provision: §23(1) sentence 1 Nr. 1§23(1) sentence 1 Nr. 1 | Last verified: Oct 8, 2026Oct 8, 2026 | Read the text (opens in a new tab) |