Tax
Real estate transfer tax is levied when buying land or property and varies by German federal state between 3.5% and 6.5%.
Real estate transfer tax is levied on the purchase of land or property. The rate varies by German federal state between 3.5% (Bavaria, Saxony) and 6.5% (Brandenburg, NRW, Schleswig-Holstein, Thuringia).
It is one of the largest ancillary purchase costs and must be paid from equity. As a rule it is not part of the financing. On a purchase price of 300,000 EUR at 6% transfer tax, that comes to 18,000 EUR.
Note: buying land and building separately can reduce the transfer tax, since it then applies only to the land portion. Inventory such as a fitted kitchen or garage fittings can also be deducted from the purchase price.
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