Fees and Costs when Buying Property in Germany
There are a number of different Fees and Cost which are set out below. These can be relied upon in general terms but may differ in specific cases.
- Approximately 1.5% of the buying price for the notary
- 0.5% of buying price to the Land Registry Office (usually included in the fees for the notary)
- Between 3% and 6% to the estate agents.
Taxes when Buying Property in Germany
'Grunderwerbssteuer'. This is the property transfer tax and amounts to 3.5% of the buying price.
'Grundsteuer', or land tax, is based on the value of the land plus buildings and paid to the local authority, generally to cover costs for infrastructure. Tax rates vary in different local authorities.
Mortgages when Buying Property in Germany
Financing the property requires a good financial track record. A mortgage of up to 60-70% is possible, usually at fixed interest rates for a determined initial period of 5 to 20 years. Sometimes special conditions can be negotiated.
Insurance when Buying Property in Germany
There are various types of insurance you need to take out when buying a property, only one of which, fire insurance (Brandversicherung) is compulsory.
The others, like property, building or furniture insurance
(Gebäudeversicherung, Hausratversicherung) are optional but strongly recommended. The premiums vary according to the value of the property or the items to be insured.