The true cost of buying a home in Germany: A guide for expats

When you start looking for a home in Germany, the purchase price is only part of the picture. You also need to budget for taxes, notary and land registry fees, and in some cases, an estate agent's commission.

These additional expenses are known as ancillary purchasing costs (Kaufnebenkosten). In general, you should plan for around 10 to 15 percent of the purchase price in extra costs. The exact amount depends on factors such as the federal state, the property and whether an estate agent is involved. In many countries, the seller covers the agent's fee, so these costs can catch international buyers by surprise.

Which additional costs should you expect?

Cost	Typical amount
Real estate transfer tax	3,5–6,5%
Notary and land registry fees	Approximately 1,5–2%
Estate agent commission	Often up to approx. 3,57% for your share
Other costs and reserves	Varies

Real estate transfer tax

Real estate transfer tax (Grunderwerbsteuer) is a one-off tax paid when purchasing a property. The rate depends on the federal state where the property is located, not on your nationality or place of residence. In 2026, rates range from 3,5 to 6,5 percent:

Federal state	Tax rate
Bavaria	3,5%
Baden-Württemberg, Lower Saxony, Rhineland-Palatinate, Saxony-Anhalt & Thuringia	5,0%
Bremen, Hamburg & Saxony	5,5%
Berlin, Hesse & Mecklenburg-Western Pomerania	6,0%
Brandenburg, North Rhine-Westphalia, Saarland & Schleswig-Holstein	6,5%

For a €400.000 property, you would pay €14.000 in Bavaria, €20.000 in Lower Saxony and €26.000 in North Rhine-Westphalia. After your purchase contract has been notarised, the tax office will generally send you a payment request. You normally need to pay the tax before the ownership transfer can be completed in the land register.

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Notary & land registry fees

In Germany, you must have your property purchase contract notarised. The notary explains the contract, records your agreement with the seller and coordinates key parts of the purchase process. Notary and land registry fees together usually amount to approximately 1,5 to 2 percent of the purchase price and can include:

• Preparing and notarising the purchase contract
• Registering the priority notice of conveyance (Auflassungsvormerkung)
• Registering you as the new owner and recording the mortgage charge in the land register
• Completing other formal steps connected with the transaction

For a €400.000 property, budget approximately €6.000 to €8.000. The notary is independent and does not represent you or your lender exclusively, so read the draft contract carefully before signing. If your German is limited, ask early whether the notary can conduct the appointment in English or whether an interpreter can attend.

Estate agent commission

If you use an estate agent (Makler), you may have to pay part of the commission. When purchasing residential property, your share commonly reaches up to approximately 3,57 percent of the purchase price, including VAT, depending on the agreement.

If both you and the seller commission the agent, you generally cannot be required to pay more than half of the total fee. Some properties are also offered without a buyer's commission, so always clarify the agent's commission (Maklerprovision) before making an offer.

Example: What could a 400.000-euro property cost you?

The following example shows how quickly ancillary purchasing costs can add up:

Cost item	Example amount
Purchase price	€400.000
Transfer tax in Lower Saxony (5%)	€20.000
Notary & land registry fees (approximately 1,75%)	€7.000
Estate agent commission (3,57%)	€14.280
Total additional costs	€41.280
Total purchase price including additional costs	€441.280

This is around 10,3 percent of the purchase price. Use it as a guide rather than a fixed quotation: actual costs depend on the property, federal state and contractual arrangements.

Remember these additional costs

Depending on your situation, you may also need to budget for:

• Renovation, repairs and modernisation
• Furniture, appliances and moving expenses
• Surveys, energy assessments or specialist inspections
• Building and other property-related insurance
• Ongoing property tax and maintenance costs
• A financial reserve for unexpected repairs
• Currency conversion fees if you transfer savings from abroad

If you buy an apartment, you will also usually pay a monthly maintenance fee (Hausgeld) to the homeowners' association. While this fee can cover shared building maintenance and common insurance, you should still keep your own financial reserve for private repairs.

How do these costs affect your mortgage?

Before starting your property search, work out how much you can realistically afford. Many German banks expect you to cover most or all of the ancillary purchasing costs using your own equity. Lenders will require clear proof that these funds exist; if your savings are held abroad or in another currency, ask early how to document them properly.

Financing these additional costs may be possible, but it can complicate your application and negatively affect your interest rate, loan-to-value ratio and affordability assessment.

Start by calculating:

• How much of your savings you can allocate without exhausting your emergency reserve
• Which costs you must pay before or shortly after completion
• How much of the purchase price you need to finance
• How comfortably your income can support mortgage repayments alongside ongoing ownership expenses 

As an expat, your assessment can also depend on your residence status, employment history, income structure and where your existing assets are held. Income paid in a foreign currency may be discounted to account for exchange-rate risk.