Property
Germany — Property: Property Taxes
Grunderwerbsteuer (property transfer tax) is a one-time levy on purchase price (for transactions above €2,500), ranging from 3.5% in Bavaria and Saxony to 6.5% in Brandenburg, North Rhine-Westphalia, and Schleswig-Holstein — a €500,000 property triggers €17,500 tax in Bavaria versus €32,500 in the highest-rate states. Berlin's rate is 6%. Beyond the one-time transfer tax, an ongoing annual property tax (Grundsteuer) also applies, set by the local municipality.
VerifiedGovernment / official sourceGTAI (Germany Trade & Invest) / Investropa property tax guidesLast reviewed: 2026-07-20
Key facts
- Grunderwerbsteuer (one-time property transfer tax): ranges 3.5% (Bavaria, Saxony) to 6.5% (Brandenburg, North Rhine-Westphalia, Schleswig-Holstein).
- Berlin's Grunderwerbsteuer rate: 6%, among the highest in Germany.
- A €500,000 property costs €17,500 in transfer tax in Bavaria versus €32,500 in the highest-rate states — nearly double.
- An ongoing annual Grundsteuer (property tax) also applies, set at the municipal level, separate from the one-time transfer tax.
Costs
- Grunderwerbsteuer (lowest, Bavaria/Saxony): 3.5% of purchase price
- Grunderwerbsteuer (highest, Brandenburg/NRW/Schleswig-Holstein): 6.5% of purchase price
- Grunderwerbsteuer (Berlin): 6% of purchase price
Common mistakes
- Assuming a single national Grunderwerbsteuer rate — it varies significantly by state, nearly doubling between the lowest and highest states.
- Forgetting the ongoing annual Grundsteuer is separate from, and in addition to, the one-time Grunderwerbsteuer paid at purchase.