Costs of buying a property in Germany

The hammer price is not the final price

When you buy a property at auction in Germany, several costs are added to the price. They depend on the type of sale and the Land where the property is located. It is best to calculate them before bidding, so you can set your limit.

1. Property transfer tax (Grunderwerbsteuer)

This is the largest item. This tax is due on any property purchase, at auction or otherwise. The rate is set by each Land: it ranges from 3.5% (Bavaria) to 6.5% in several Länder, and can change. Check the rate in force in the Land where the property is located at the time of purchase. It is calculated on the hammer price.

2. The auction house commission (Aufgeld or Courtage)

In voluntary sales (estate agency auctions), the buyer pays a commission. It is sliding scale: the percentage decreases as the price rises, and it is generally quoted including VAT. The exact scale is set out in each house's conditions of sale; Bidorado displays it when published.

In court-ordered forced sales and most public tenders, there is no buyer's commission.

3. Notary and land registry

• Voluntary sale: a notary records the sale and has it registered. Expect notary and land registry (Grundbuch) fees, regulated by a national scale.
• Forced sale: no notary for the purchase, but court fees for the adjudication and land registry registration.

4. No VAT on the price

The sale of a property is in principle not subject to VAT in Germany: property transfer tax takes its place. The auction house commission, however, includes VAT.

5. Other costs to plan for

• financing (arrangement fees, bank guarantee) if you borrow;
• works, especially for properties sold as seen;
• unpaid co-ownership charges, in certain cases;
• translation of documents and legal support if you do not speak German.

Example calculation (indicative)

For a house knocked down at €100,000 in a voluntary sale, in a Land with 5% property transfer tax, you need to allow for the price, the auction house commission according to its scale, €5,000 in property transfer tax, then notary and land registry fees. In a forced sale, the commission disappears, but property transfer tax and court fees remain.

On each property listing, Bidorado displays the starting price with the commission where it applies, and reminds you of the costs to add. The exact amounts are set out in the official conditions of sale, which prevail.