Hidden Costs of Buying Property in Germany: What You Must Budget For

Barbara Okwufulueze
Dec 1
2 min read

Many buyers focus only on the asking price of a flat or house. In Germany, however, a long list of extra costs sits on top of the purchase price. If you do not plan for them, your budget can quickly become too tight.

Here are the main hidden costs you should know about.

1. Property transfer tax (Grunderwerbsteuer)

Every buyer pays a tax when purchasing property. The rate depends on the federal state and is usually somewhere between about 3.5% and 6.5% of the purchase price.

You pay this after signing the notary contract. Without this payment, the property cannot be entered in your name in the land register.

2. Notary and land registry fees

In Germany, a notary must oversee every property purchase. Their tasks include:

Drafting and explaining the contract
Managing payments and legal checks
Arranging the entry in the land register

The combined cost for notary plus land registry is usually around 1–2% of the purchase price.

If you need an interpreter at the appointment, budget a bit extra.

3. Estate agent (Makler) commission

If an estate agent is involved in arranging the sale, a commission is due. The exact rules vary by state and by who hired the agent, but the fee can be up to about 6–7% (plus VAT) of the purchase price.

In many cases, buyer and seller share this cost, but make sure you understand what your contract says before you sign.

4. Bank and mortgage fees

Taking out a mortgage can lead to additional costs:

Property valuation fee
Processing or arrangement fees (though many banks no longer charge these)
Interest that starts as soon as the money is paid out

Ask your bank or broker for a full list of costs in writing.

5. Renovation and furnishings

Older properties may need:

New kitchen or bathroom
Painting and flooring
Windows, heating or insulation upgrades

These works are not part of the legal purchase cost, but they are real money leaving your account. A good rule is to have a separate renovation budget, especially if you are buying a flat that needs work.

6. Ongoing ownership costs

Once you own the property, there are regular outgoings:

Monthly building charges (Hausgeld) in flats
Repairs and maintenance
Building insurance
Local property tax (Grundsteuer)

These costs do not appear in the purchase contract but affect your long-term budget and rental yield if you are an investor.

7. Example: How quickly costs add up

Imagine a flat with a purchase price of €300,000. A rough budget might be:

Transfer tax (5% example): €15,000
Notary + land registry (2%): €6,000
Agent fee (3.5% share): €10,500
Total legal / transaction costs: €31,500

On top of that, add any renovation, moving and furniture.

You can see why advisors often say you need around 8–15% extra on top of the purchase price.

Understanding the full cost of buying in Germany will help you avoid stress later. When you view a property you like, always calculate: purchase price + 8–15% extra for taxes and fees, plus your renovation budget.