German Closing Costs: The 'Kaufnebenkosten' Guide

Note: This content is specific to the German property market.

The biggest shock for expats buying property in Germany is the Kaufnebenkosten (Purchase Ancillary Costs). In Germany they typically range from about 5% (no agent) to about 12% (with an agent) of the purchase price. Crucially, banks rarely finance these costs. You usually need to pay them out of pocket, in addition to your down payment.

What are the Kaufnebenkosten and How Do They Work?

The Kaufnebenkosten are a series of fees associated with buying a property in Germany. These costs are mandatory and can be a significant burden on buyers. The fees include:

• Grunderwerbsteuer (Property Transfer Tax): This is the biggest chunk of the Kaufnebenkosten. It varies by Federal State (Bundesland).
• Notary & Land Registry (Notar und Grundbuchamt): These are mandatory for every transaction and typically cost 1.5% to 2.0% of the purchase price.
• Real Estate Agent (Maklerprovision): Since 2020, the commission is split 50/50 between buyer and seller for residential homes. The cost is typically 3.57% (including VAT) for the buyer.

The Breakdown of Kaufnebenkosten

Here is a detailed breakdown of the Kaufnebenkosten:

• Grunderwerbsteuer (Property Transfer Tax), 2026 rates by Federal State (Bundesland):
  • Baden-Württemberg: 5.0%
  • Bayern (Bavaria): 3.5% (lowest)
  • Berlin: 6.0%
  • Brandenburg: 6.5% (highest)
  • Bremen: 5.5%
  • Hamburg: 5.5%
  • Hessen: 6.0%
  • Mecklenburg-Vorpommern: 6.0%
  • Niedersachsen: 5.0%
  • Nordrhein-Westfalen (NRW): 6.5% (highest)
  • Rheinland-Pfalz: 5.0%
  • Saarland: 6.5% (highest)
  • Sachsen (Saxony): 5.5%
  • Sachsen-Anhalt: 5.0%
  • Schleswig-Holstein: 6.5% (highest)
  • Thüringen (Thuringia): 5.0%
  • Recent changes: Hamburg and Sachsen from 01.01.2023, Thüringen from 01.01.2024, Bremen from 01.07.2025.
• Notary & Land Registry (Notar und Grundbuchamt):
  • Cost: Approx. 1.5% to 2.0% of the purchase price (notary about 1.0–1.5%, land registry about 0.5%)
• Real Estate Agent (Maklerprovision):
  • Cost: Typically 3.57% (including VAT) for the buyer

Example Calculation: Buying in Berlin

If you buy a €500,000 apartment in Berlin:

• Tax (6.0%): €30,000
• Notary (2.0%): €10,000
• Agent (3.57%): €17,850
• Total Extra Cash Needed: €57,850 (11.57% of the price) You need nearly €60k in cash just to pay the fees, before you even start paying for the house itself.

How to Calculate Kaufnebenkosten

To calculate the Kaufnebenkosten, you need to consider the following factors:

• The purchase price of the property
• The location of the property (to determine the Grunderwerbsteuer rate)
• The notary and land registry fees
• The real estate agent commission You can use a German mortgage calculator to estimate the Kaufnebenkosten and get a better understanding of the total costs involved in buying a property in Germany.

What are the Consequences of Not Paying Kaufnebenkosten?

If you don't have enough liquidity to pay the Kaufnebenkosten, most banks will reject your mortgage application instantly. This can be a significant setback for buyers who are not prepared for these costs. It's essential to factor in the Kaufnebenkosten when budgeting for a German home to avoid any unexpected surprises.

Tips for Buyers

Here are some tips for buyers to keep in mind:

• Always calculate the Kaufnebenkosten first when budgeting for a German home
• Consider the location of the property and the corresponding Grunderwerbsteuer rate
• Factor in the notary and land registry fees, as well as the real estate agent commission
• Use a German mortgage calculator to estimate the Kaufnebenkosten and get a better understanding of the total costs involved

Conclusion

When budgeting for a German home, always calculate the Kaufnebenkosten first. If you don't have this liquidity, most banks will reject your mortgage application instantly. 👉 German Mortgage Calculator: Purchase & Closing Costs

Key Takeaways

• Kaufnebenkosten can range from about 5% to 12% of the purchase price
• Grunderwerbsteuer rates vary by Federal State (Bundesland), from 3.5% (Bayern) to 6.5%
• Notary and land registry fees typically cost 1.5% to 2.0% of the purchase price
• Real estate agent commission is typically 3.57% (including VAT) for the buyer
• Use a German mortgage calculator to estimate the Kaufnebenkosten and get a better understanding of the total costs involved

Frequently Asked Questions

• What are Kaufnebenkosten?
  • Kaufnebenkosten are a series of fees associated with buying a property in Germany.
• How much are the Kaufnebenkosten?
  • Kaufnebenkosten can range from about 5% to 12% of the purchase price.
• What is the Grunderwerbsteuer rate in Berlin?
  • The Grunderwerbsteuer rate in Berlin is 6.0%.
• How much are the notary and land registry fees?
  • The notary and land registry fees typically cost 1.5% to 2.0% of the purchase price.
• How much is the real estate agent commission?
  • The real estate agent commission is typically 3.57% (including VAT) for the buyer.