Germany Real Estate Transfer Tax Guide (Grunderwerbsteuer 2026)
Grunderwerbsteuer (GrESt) is a one-time tax on the purchase of real estate in Germany, ranging from 3.5% (Bavaria, Saxony) to 6.5% (NRW, Saarland). The buyer pays the tax on the full purchase price (including fixtures and fittings). Exemptions exist for transfers between spouses, inheritance, and certain share deals or corporate restructurings.
When you buy a property in Germany, Grunderwerbsteuer is one of the largest additional costs after the purchase price. The tax is based on the notarised purchase price (Kaufpreis) and must be paid before the property can be registered in your name at the Grundbuch (land registry). The exact rate depends on the Bundesland where the property is located. For related reading, see our Property Tax Guide → and Property Investment Guide →.
Grunderwerbsteuer Rates by State (Bundesland)
- 3.5% (lowest): Bavaria (Bayern) and Saxony (Sachsen). These states have maintained the lowest rate, making property purchases significantly cheaper than elsewhere.
- 4.5%: Hamburg. The city-state has a moderate rate compared to other northern states.
- 5.0%: Berlin, Brandenburg, Bremen, Mecklenburg-Vorpommern, Rhineland-Palatinate (Rheinland-Pfalz), Saxony-Anhalt (Sachsen-Anhalt), Schleswig-Holstein, Thuringia (Thüringen).
- 5.5%: Baden-Württemberg, Hesse (Hessen). These states raised rates in recent years to fund state budgets.
- 6.5% (highest): North Rhine-Westphalia (NRW / Nordrhein-Westfalen), Saarland. These states have the highest GrESt rates in Germany.
Exemptions and Special Rules
- Spouse transfers (Ehegatten): Transfers of property between spouses (including during divorce proceedings) are exempt from Grunderwerbsteuer. Also exempt: transfers between civil partners (Lebenspartnerschaft).
- Inheritance and gifts (Erbschaft/Schenkung): Property acquired through inheritance or gift is not subject to GrESt, but may be subject to Erbschaftsteuer (inheritance tax) or Schenkungsteuer (gift tax).
- Share deals (Anteilskauf): Buying shares in a property-owning GmbH or corporation can be structured to avoid GrESt if the share transfer stays below certain thresholds (90% or 95% depending on the year). This is a common tax planning strategy for large portfolios, but the rules have been tightened.
- Corporate restructurings: Mergers, demergers, and certain restructurings under the Umwandlungssteuergesetz may qualify for GrESt exemptions, subject to holding periods and other conditions.
- Purchase of first property from a developer: The full purchase price — including the land, building, and any fixtures — is subject to GrESt. There is no exemption for first-time buyers at the federal level (though some states offer limited relief).