What is the Grunderwerbsteuer?

It is Germany's real estate transfer tax, paid once by the buyer when a property changes ownership. The Finanzamt issues a tax notice, and the notary cannot register the new owner in the land register until the tax is paid.

Why does the rate differ by state?

Since 2006 each of the 16 Bundesländer sets its own Grunderwerbsteuer rate. Rates currently range from 3.5% in Bavaria and Saxony to 6.5% in states such as Brandenburg, North Rhine-Westphalia, Saarland, Schleswig-Holstein, and Thuringia.

Is the tax based on the full purchase price?

Yes, it is generally levied on the agreed purchase price of the land and building. You can reduce the base by the documented value of movable items (kitchen, furniture) invoiced separately, within reasonable limits accepted by the tax office.

Are there other purchase costs?

Yes. On top of Grunderwerbsteuer, buyers typically pay notary and land-registry fees (around 1.5% to 2%) and, if used, an estate agent commission. This tool calculates only the transfer tax.

Are first-time buyers exempt?

Germany has no general first-time-buyer exemption from Grunderwerbsteuer, though some states have discussed allowances. Transfers between close relatives (spouses, parents to children) and small transactions below 2,500 EUR can be exempt.

Germany Grunderwerbsteuer Calculator

This tool calculates the German Grunderwerbsteuer (real estate transfer tax) due when you buy property. The rate depends entirely on the Bundesland where the property sits, ranging from 3.5% to 6.5%. It is a planning estimate of one of your main closing costs.

How it works

Since 2006 each federal state sets its own transfer-tax rate. The tax is a flat percentage of the purchase price:

grunderwerbsteuer = purchase_price × state_rate

The buyer pays it once, after the notarised contract, and the Finanzamt issues a tax notice (Steuerbescheid). The notary will not file the change of ownership in the Grundbuch (land register) until the tax has been settled, so it is an unavoidable part of completing the purchase.

Current rates by Bundesland

3.5%: Bavaria, Saxony.
5.0%: Baden-Württemberg, Bremen, Lower Saxony, Rhineland-Palatinate, Saxony-Anhalt.
6.0%: Berlin, Hamburg, Hesse, Mecklenburg-Vorpommern.
6.5%: Brandenburg, North Rhine-Westphalia, Saarland, Schleswig-Holstein, Thuringia.

Example

A 400,000 EUR purchase in North Rhine-Westphalia (6.5%): 400,000 × 0.065 = 26,000 EUR transfer tax. The same property in Bavaria (3.5%) would cost only 14,000 EUR.

Notes

Reduce the base by separately invoiced movable items where the tax office accepts it. Add notary and land-registry fees (about 1.5% to 2%) and any agent commission for a full cost picture. Rates can change, so confirm your state’s current figure. All math runs in your browser.