Purchase costs

Transfer tax by federal state, notary, land registry and broker – and how much you need to borrow.

€52,065 in extra costs

On top of the price you pay €52,065 in Incidental purchase costs German: Kaufnebenkosten Costs on top of the price: real estate transfer tax, notary, land registry and possibly a broker. Together 7–15% of the price, depending on the federal state. Banks rarely finance them, so plan to pay them from your own capital. All terms in the glossary (11.6%). With your own capital you need to borrow €412,065.

That is a Loan-to-value (LTV) German: Beleihungsauslauf The loan as a share of the property's value. The lower it is, the less risk for the bank and the better your interest rate – the usual steps are 60%, 80%, 90% and 100%. Banks measure it against their own cautious valuation (Beleihungswert), often 10–20% below the price, so their figure is higher than loan ÷ price. All terms in the glossary of 91.6%: up to 100% – expect a noticeable surcharge.

Property

Purchase price As in the listing or your offer Purchase price The price agreed with the seller in the notarised purchase contract. All incidental costs are calculated from it.

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Federal state Bundesland · Where the property is – sets the transfer tax Federal state German: Bundesland Germany's 16 states. Each sets its own real estate transfer tax, which is why the state of the property matters for the purchase costs. All terms in the glossary

Fees

Kaufnebenkosten

Notary Notar Notary German: Notar In Germany every property purchase must be signed in front of a notary, who drafts the contract and handles the registration. Fees are set by law (GNotKG), roughly 1–1.5% of the price. All terms in the glossary

Land registry Grundbuch Land registry German: Grundbuch The official register of who owns a property and which loans are secured on it (Grundschuld). Entering you as owner and registering the bank's security costs about 0.5% of the price. All terms in the glossary

Broker's fee Maklerprovision · Your share incl. VAT; 0 if you buy without an agent Broker's commission German: Maklerprovision The fee for the estate agent. For houses and apartments the buyer pays at most half of it; a common share is 3.57% of the price including VAT. There is none if you buy directly from the owner. All terms in the glossary

Money

Own capital Eigenkapital · Savings you put in Own capital (down payment) German: Eigenkapital Savings you put into the purchase yourself. Banks expect it to cover at least the incidental costs; with 20% or more of the price on top you get noticeably better interest rates. All terms in the glossary

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More details

Furniture and fittings e.g. a fitted kitchen Furniture and fittings Movable items you buy with the home can be listed separately in the contract. No transfer tax is due on them, which lowers the tax. Keep the value realistic – the tax office may check it.

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Renovation Financed together with the purchase Renovation Work you plan right after buying, such as a new bathroom or flooring. It is added to the loan; no transfer tax is due on it.

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Results update as you type.

Incidental costs Incidental purchase costs German: Kaufnebenkosten Costs on top of the price: real estate transfer tax, notary, land registry and possibly a broker. Together 7–15% of the price, depending on the federal state. Banks rarely finance them, so plan to pay them from your own capital. All terms in the glossary: €52,065
Total cost Total cost Price plus incidental costs plus renovation – everything the purchase costs you.: €502,065
Loan needed Loan amount German: Darlehensbetrag The total cost minus the own capital you bring. This is what you ask the bank for. The amount you borrow from the bank – usually the purchase price plus incidental costs, minus the own capital you bring. All terms in the glossary: €412,065
Loan-to-value Loan-to-value (LTV) German: Beleihungsauslauf Here: the loan divided by the price plus renovation. Banks use their own, lower valuation of the property (Beleihungswert), so their figure is usually somewhat higher. The loan as a share of the property's value. The lower it is, the less risk for the bank and the better your interest rate – the usual steps are 60%, 80%, 90% and 100%. Banks measure it against their own cautious valuation (Beleihungswert), often 10–20% below the price, so their figure is higher than loan ÷ price. All terms in the glossary: 91.6%

What you pay on top Incidental purchase costs German: Kaufnebenkosten Costs on top of the price: real estate transfer tax, notary, land registry and possibly a broker. Together 7–15% of the price, depending on the federal state. Banks rarely finance them, so plan to pay them from your own capital. All terms in the glossary

Due within weeks of signing, on top of the price

Transfer tax (Grunderwerbsteuer): €27,000 52%
Notary (Notar): €6,750 13%
Land registry (Grundbuch): €2,250 4%
Broker (Makler): €16,065 31%

How the purchase is paid How the purchase is paid Your own capital is used first; the bank lends the rest. The larger your share, the better the interest rate you are offered.

Total cost including incidentals and renovation

Own capital: €90,000 18%
Loan: €412,065 82%

Transfer tax across Germany Real estate transfer tax German: Grunderwerbsteuer A one-off tax on buying property, between 3.5% and 6.5% of the price depending on the federal state. The tax office sends the bill after the purchase; you are only registered as owner once it is paid. Movable items such as a fitted kitchen can be listed separately and are not taxed. All terms in the glossary

The same €450,000 home in each federal state

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