Real estate transfer tax and closing costs when buying property

Why the real estate transfer tax rate depends on the federal state

In Germany, real estate transfer tax is set at the state level (Art. 105 para. 2a of the Basic Law) — each of the 16 federal states sets its own rate and changes it from time to time. The current range spans from 3.5% of the purchase price in Bavaria up to 6.5% in Brandenburg, North Rhine-Westphalia, Saarland, and Schleswig-Holstein. Rates do change over time — Thuringia lowered its rate from 6.5% to 5.0% in 2024, while Bremen raised its rate from 5.0% to 5.5% in 2025.

How the tax is calculated

The formula is simple: purchase price multiplied by the relevant state's rate, rounded to the nearest cent. For a €400,000 purchase in Bavaria (3.5%), that's €14,000; in Brandenburg (6.5%), it's €26,000 — the same purchase price, but a €12,000 difference purely from which state the property is in. Special cases such as exemptions for close relatives, heritable building rights, share consolidations, or deducting co-sold fixtures from the assessment base aren't included — for a binding calculation, contact the responsible tax office or a tax advisor.

What other closing costs to expect

Real estate transfer tax is usually the largest single item among closing costs, but not the only one. Notary fees for certifying the purchase contract and land registry fees for registering the new owner typically come on top. ConverterFleet offers a dedicated calculator for both — the notary fee calculator and the land registry fee calculator.