What it costs to buy a home in each German state

What the table shows

The tax is the whole story

Notary and land registry fees are federal — the same schedule applies in Flensburg and in Munich. Agent commission varies a little by regional custom. Everything else that differs between states is transfer tax, and it ranges from 3.5% to 6.5%. On a €400,000 home that single line is the difference between €14,000 and €26,000.

The tax ranking is not the cost ranking

This is what a plain Grunderwerbsteuer table hides. Bremen charges 5.5% — well above the 5.0% states — yet on a €400,000 purchase with an agent it comes out second cheapest in the country, ahead of every 5.0% state. The reason is commission: the customary total in Bremen is 5.95% rather than the usual 7.14%, so the buyer's half is €11,920 instead of €14,280. That €2,360 more than cancels the extra €2,000 of tax.

Hesse and Mecklenburg-Vorpommern benefit from the same lower custom, and Hamburg from a middling 6.25%. Saxony shows the effect in reverse: same 5.5% tax as Bremen, ordinary commission, and it lands five places lower. If you are comparing states, compare the total — the headline tax rate will mislead you.

Bavaria never moved

Until 2006 the rate was a uniform 3.5% nationwide. The federalism reform of that year handed the decision to the states, and fifteen of the sixteen used it to raise money. Bavaria is the exception: it has charged 3.5% since January 1997 and has not changed it since.

The rates still move

The most recent change is Bremen, from 5.0% to 5.5% on 1 July 2025. Before that, Thüringen went the other way — 6.5% down to 5.0% at the start of 2024, the only cut of the last decade. Hamburg and Saxony both raised in January 2023. The "rate since" column is in the table for exactly this reason: a figure without a date is a figure you cannot check.

There is no first-time buyer relief

Unlike the Netherlands, where buyers under 35 pay no transfer tax on a home up to €555,000, and unlike Ireland, where first-time buyers of a new build under €500,000 are exempt from stamp duty, Germany offers nothing. A first small flat is taxed at the same rate as an investor's twentieth rental property.

And you cannot usually borrow it

German lenders finance the property, not the cost of acquiring it. The transfer tax, the notary and the agent come out of savings. This is why the honest question for a German purchase is not "what can I afford monthly" but "how much cash do I have on the day" — and why the gap in the table above decides purchases.

Frequently asked questions

Which German state has the lowest property transfer tax?

Bavaria, at 3.5%. It is the only state that never raised the rate after the 2006 reform handed the decision to the states, and it has charged 3.5% since January 1997.

Which German states charge 6.5%?

Brandenburg, North Rhine-Westphalia, Saarland and Schleswig-Holstein. On a €400,000 home that is €26,000 in transfer tax alone, against €14,000 in Bavaria.

How much are total purchase costs when buying a house in Germany?

Between about 8.6% and 11.6% of the purchase price for a buyer using an agent, depending on the state. Set your own price in the table above for the exact figures.

Do first-time buyers pay less transfer tax in Germany?

No. Germany has no first-time buyer relief on Grunderwerbsteuer, which makes it unusual among its neighbours.

Can I borrow the purchase costs as part of my mortgage?

Usually not. German lenders generally finance the property price and expect the buyer to cover transfer tax, notary fees and agent commission from savings.