German Closing Costs 2025: 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). Unlike the UK or US where closing costs might be 2-5%, in Germany they typically range from 10% to 15% 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.

The Breakdown

1. Grunderwerbsteuer (Property Transfer Tax):

   • This is the biggest chunk. It varies by Federal State (Bundesland).
   • Bavaria: 3.5% (Lowest)
   • Berlin, Hamburg, NRW: 6.0% - 6.5% (Highest)

2. Notary & Land Registry (Notar und Grundbuchamt):

   • Mandatory for every transaction.
   • Cost: Approx. 2.0% of the purchase price.

3. Real Estate Agent (Maklerprovision):

   • Since 2020, the commission is split 50/50 between buyer and seller for residential homes.
   • 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

You need nearly €60k in cash just to pay the fees, before you even start paying for the house itself.

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