Real estate transfer tax explained
Number of federal states at each tax rate
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What is the real estate transfer tax?
The real estate transfer tax is due when land or a property in Germany changes ownership. It is regulated by the Real Estate Transfer Tax Act, but each federal state sets its own tax rate.
Legally, buyer and seller owe the tax jointly. In almost all purchase contracts, however, the buyer pays it. Only once it is paid does the tax office issue the clearance certificate required for the entry in the land register.
How the transfer tax calculator works
Enter the purchase price according to the contract, choose the federal state in which the property is located and optionally add movable items sold with it. The calculator then shows:
- Tax base: purchase price minus separately valued movable items.
- Tax rate: the current rate of the selected federal state.
- Transfer tax: tax base multiplied by the tax rate.
- Purchase price including transfer tax as a guide for your financing.
Tax rates by federal state
Bavaria has the lowest rate at 3.5 %. 5.0 % applies in Baden-Württemberg, Lower Saxony, Rhineland-Palatinate, Saxony-Anhalt and Thuringia. 5.5 % applies in Bremen, Hamburg and Saxony. Berlin, Hesse and Mecklenburg-Western Pomerania charge 6.0 %. The highest rate of 6.5 % applies in Brandenburg, North Rhine-Westphalia, Saarland and Schleswig-Holstein.
The federal states can change their rates at any time. The rate in force on the date the purchase contract is notarised is decisive.
When no transfer tax is due
Some acquisitions are exempt from the transfer tax. The calculator deliberately does not cover these cases:
- Purchases between spouses or registered partners.
- Purchases from direct relatives, for example from parents.
- Acquisitions by inheritance or gift, which are subject to inheritance or gift tax instead.
- Land purchases with a value of up to 2,500 euros.
