Germany — Property: Buying Process

Key facts

• A notary (Notar) must draft and notarize the purchase contract, and register the sale in the land registry (Grundbuch) — this is a mandatory legal step for every German property transaction.
• Total closing costs typically run 7-12% of the purchase price.
• Notary fees: 1-2% of the purchase price, including 19% VAT — e.g. ~€2,400-3,000 for a €200,000 property, ~€6,000-7,500 for a €500,000 property.
• Grunderwerbsteuer (transfer tax) and land registry fees are the other two major cost components alongside notary fees.

Steps

1. Agree terms with the seller — Negotiate price and conditions before drafting the contract.
2. Notary drafts and reviews the purchase contract — Legally mandatory — cannot be skipped or replaced by a private agreement.
3. Sign in the notary's presence — Both buyer and seller must sign the contract before the notary.
4. Pay Grunderwerbsteuer (transfer tax) — Due before the notary can register the transfer.
5. Notary registers the sale in the Grundbuch — Completes the legal transfer of ownership.

Costs

• Total closing costs: 7-12% of purchase price

Required documents

• Notarized purchase contract
• Proof of identity
• Proof of funds/mortgage approval

Common mistakes

• Assuming a private purchase agreement without a notary is legally binding — German law requires notarization for any property transfer.
• Budgeting only for the purchase price without accounting for the additional 7-12% in closing costs.

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