Property Purchasing Cost Calculator Germany
Purchasing costs for properties in Germany vary from state to state. With our calculator, you can easily find out what costs you can expect for your dream home.Published on Jan 3, 2023 . Updated a month ago
Since most banks only grant mortgages up to a maximum of 100 % of a property's purchase price, you normally need to be able to contribute at least the purchasing purchase costs as equity. But how high are the purchasing costs in Germany? As some fees vary from state to state, there is no general way to tell. With our property purchasing cost calculator, you can easily find out how high the costs for your dream home are.
Let's calculate your purchasing costs
The purchasing costs of your property
For your desired property, the costs you have to consider the following purchasing costs:
Cost | Cost in % | Cost in € |
|---|---|---|
Property transfer tax | 6 % | 24.000 € |
Notary fees | 2 % | 8.000 € |
Real estate commission | 3,57 % | 14.280 € |
Total purchasing cost | 11,57 % | 46.280 € |
In total, you will have to calculate the purchase cost of 11,57 % for this property. If you want to reduce the loan-to-value ratio to 95 %, you would have to bring an additional 5 % of the purchase price. That means you then have to bring 66.280 €.
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The individual costs explained in detail
Property Transfer Tax
The property transfer tax is a tax every buyer must pay to the tax office when purchasing a property. Depending on the state in which the property is located, it ranges from 3,5-6,5 % of the purchase price. It is calculated based on the property's value at the time of sale.
Paying this tax is an important factor in the transfer of ownership rights to the new owner. Note that the real estate transfer tax must be paid fairly soon after the purchase contract has been signed. There is usually a deadline of one to two months to pay the tax, and there are also penalties for late payments. Only when the tax office has confirmed that the property transfer tax has been paid will the buyer be registered as the new owner in the land register.
Notary Fees
Notary fees for buying a property in Germany are quite high compared to most countries.
The notary fees are usually about 1,5-2 % of the purchase price. The fees include the cost of land registration of about 0,5 %. They are at the lower end of this range for more expensive properties and if the loan is relatively small compared to the purchase price.
Keep in mind that you have to pay about half these fees if the notary draws up the purchase contract but you don't buy the property.
Among other things, the notary will take care of drafting the purchasing contract, entering the buyer in the land registration, and generally taking care of all communication with the German tax office. For a detailed overview, see our 10-step guide on the notary process in Germany.
Real Estate Commission
If a real estate agent brokers the property you want to buy in Germany, you will be charged a commission. Since a change in the law in 2020, real estate buyers only have to pay a maximum of 50 % of the brokerage fees. So, as a rule, the real estate commission is split 50/50 between the seller and the buyer. There is no official regulation on the maximum amount of the broker's commission, but on average, in Germany, it is 7,14 %, i.e., 3,57 % each for the buyer and the seller.
These fees are mostly incurred when you buy an existing property. If you buy a new building directly from the builder or project developer, this is often commission-free.
When your property is well priced, It can sometimes pay to ask the real estate agent to fold their fees into the purchase price. This saves you cash and allows you to reduce the loan-to-value ratio, which may lead to a lower interest rate. The drawback is that you have to pay property transfer taxes over the higher purchase prices. But the interest savings may be quite worth it.
Are you still not sure if you can afford your dream home, including the purchase costs? Use our affordability calculator to discover your maximum home-buying budget.