Buying a property involves considerable costs - and it's not just about the purchase price. Many buyers underestimate the additional costs that are incurred when buying a property. In this blog post, we explain what additional costs you will incur, whether you have to pay land transfer tax, notary fees or estate agent commission and what ongoing costs arise after the purchase.
1. what additional costs will I incur in addition to the purchase price?
In addition to the actual purchase price, property buyers must plan for various additional costs. These can vary depending on the federal state and individual situation. The most important additional costs are
- Real estate transfer tax(depending on the federal state 3.5 % - 6.5 % of the purchase price)
- Notary fees and land register entry(approx. 1.5 % - 2 % of the purchase price)
- Broker commission(depending on the federal state, up to 7.14 % of the purchase price)
- Costs for a property valuation or surveyor
- Ancillary financing costs (bank charges, commitment interest, valuation costs)
- Insurance costs (e.g. home insurance)
These ancillary costs must be taken into account in the financial planning, as they cannot be financed from the property loan, but usually have to be paid from equity.
2. do I have to pay land transfer tax, notary fees or estate agent's commission?
2.1 Real estate transfer tax
Land transfer tax is a mandatory tax that is payable when buying a property. Depending on the federal state, it varies between 3.5 % and 6.5 % of the purchase price. This tax is payable once to the tax office and is due as soon as the purchase contract has been notarised.
Table: Real estate transfer tax rates in Germany (current status)
| Federal state | Tax rate |
| Bavaria, Saxony | 3,5 % |
| Hamburg | 4,5 % |
| Baden-Württemberg, Bremen, Mecklenburg-Western Pomerania, Lower Saxony, Rhineland-Palatinate, Saxony-Anhalt | 5 % |
| Berlin, Brandenburg, Hesse, North Rhine-Westphalia, Saarland, Schleswig-Holstein | 6 % - 6.5 % |
2.2 Notary fees and land register entry
Every property purchase in Germany must be notarised. The notary fees amount to around 1 % - 1.5 % of the purchase price and include:
- The preparation of the purchase contract
- Notarisation of the purchase agreement
- Communication with the land registry
In addition, there are costs for the land register entry, which amount to around 0.5 % of the purchase price.
2.3 Broker commission
Whether you have to pay an estate agent's commission depends on whether the property was brokered by an estate agent. Since 2020, the following applies in Germany Buyer principleIn most cases, the buyer and seller share the commission, with buyers paying a maximum of 50 % of the estate agent's fees. The amount of the estate agent's commission varies depending on the federal state, but is usually between 3 % and 7.14 % of the purchase price.
Example calculation for a property with a purchase price of €400,000:
| Cost type | Percentage | Amount |
| Real estate transfer tax (NRW) | 6,5 % | 26.000 € |
| Notary & land register | 1,5 % | 6.000 € |
| Brokerage commission (50 % of 7.14 %) | 3,57 % | 14.280 € |
| Total costs | approx. 11.5 % | 46.280 € |
3. are there any running costs (property maintenance, maintenance reserve, property tax)?
After buying a property, there are still regular costs that are often underestimated. Here are the most important running costs:
3.1 House rent (for condominiums)
When you buy a condominium, you pay monthly property management fees to the property management company. This includes:
- Operating costs(water, refuse collection, caretaker, lift, cleaning)
- Reserves for repairs and maintenance
The amount of the house rent varies depending on the property and is usually 2-4 € per square metre of living space.
3.2 Maintenance reserve
A maintenance reserve is formed for owner-occupied flats to finance major repairs (e.g. roof renovation, facade renewal). This reserve is financed from the house rent.
For single-family homes, owners must build up their own reserves for repairs and modernisation. The rule of thumb is 1-1.5 % of the purchase price per year should be set aside.
3.3 Property tax
The property tax is an annual levy to the municipality and is calculated on the basis of the assessed value of the property. The amount varies depending on the municipality and can amount to several hundred euros per year.
Example:
- A flat with a unit value of €100,000 and an assessment rate of 400 % pays around 400-600 € Property tax.
3.4 Insurance costs
- Residential building insuranceCompulsory for homeowners, covers damage caused by fire, water and storm (approx. 200-800 € per year).
Household contents insuranceOptional, protects inventory against theft or water damage (approx. 100-300 € per year).
Conclusion
When buying a property, you should not only budget for the purchase price, but also for the ancillary costs and ongoing expenses. In addition to land transfer tax, notary fees and estate agent's commission, monthly costs such as house fees, maintenance reserves and property tax will also be incurred after the purchase. Thorough financial planning helps to avoid unpleasant surprises and keep the property affordable in the long term.
