Buying a house in Germany: the system protects you with sequence — and the Finanzamt holds the key
Germany has the safest purchase process of all destinations: you only pay once the Vormerkung in the Grundbuch protects you, and the seller only loses his ownership once you have paid. But the Grunderwerbsteuer differs per federal state (3.5 to 6.5%), and without proof that it has been paid, the Grundbuch doesn't register you as owner. After that comes the annual Grundsteuer.
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Written and checked by Auke on , against the sources at the bottom. Is something no longer right? Report it below and I'll fix it.
Yes, as a Dutch citizen you buy in Germany without restriction. And with the safest purchase process of all destinations: the Notar (the notary) first has a Vormerkung, a reservation in your name, entered in the Grundbuch (the land register), and only then do you pay.
What it costs depends on the federal state:
- The Grunderwerbsteuer, the property transfer tax, runs from 3.5% to 6.5%. In North Rhine-Westphalia you pay that top rate.
- On top come notary and Grundbuch costs at the statutory tariff.
- And at most half of the agent's commission.
Two things to know in advance:
- The find. Without the Unbedenklichkeitsbescheinigung from the Finanzamt, the proof that this tax has been paid, the Grundbuch doesn't register you as owner.
- The pitfall is patience. Registration only follows the payment of both the price and the tax, and a cooling-off period after signing doesn't exist here.
In your first year you don't buy. You rent, you get to know the city or the region, and only then do you decide — why that order is fixed. This article is for the moment you've got that far.
How does the purchase run, and when do I pay?
The purchase runs compulsorily via the Notar. The notary builds the transaction like a lock in which money and ownership can never miss each other:
- Two weeks to read. If you buy as a private individual (for instance from a building company or via a professional party), the notary should as a rule give you the draft contract two weeks before signing. Really use that time. A statutory cooling-off period after the signature, as in France, doesn't exist here.
- First the Vormerkung, only then money. After notarisation (signing the deed at the notary's) the notary has an Auflassungsvormerkung entered for you in the Grundbuch. That is a reservation that prevents the seller from selling or encumbering the property again. Only once that's in place, the documents to cancel old mortgages are in, and the municipality does not exercise its statutory right of first refusal, does the notary send the Fälligkeitsmitteilung, the notice that the price is due. Only now do you have to pay.
- Ownership only on registration. The seller in turn only loses his ownership once you have paid in full. Only then does the notary file the transfer. You become owner at the moment of the Eintragung in the Grundbuch: not at the signature, not at the payment.
That registration takes its time is not a backlog, that's the system.
What does buying a house in Germany cost on top of the price?
The transfer tax is called the Grunderwerbsteuer. The law sets the base rate at 3.5%, but the federal states may deviate from it themselves. Most do so considerably: in North Rhine-Westphalia, for instance, you pay 6.5%. On the same € 350,000 home that's a difference of well over € 10,000 between federal states, so calculate with the rate of your Bundesland.
The way it goes:
- The tax arises when the notarial deed is signed, regardless of when you pay or are registered.
- You receive an assessment from the Finanzamt and pay within a month. The Finanzamt as a rule grants no deferral, so include the amount in your financing.
- If you buy as a married couple, you receive two assessments, each with its own tax number.
- Only after payment does the Finanzamt issue the Unbedenklichkeitsbescheinigung, directly to the notary. Without that paper the Grundbuch doesn't register you as owner.
So the tax office sits literally between you and your ownership. Exempt are, among others, acquisitions up to € 2,500, by inheritance, between spouses and between parents and children.
| Cost item or time limit | What applies |
|---|---|
| Grunderwerbsteuer, base rate in the law | 3.5% |
| Grunderwerbsteuer in North Rhine-Westphalia | 6.5%, for deeds since 1 January 2015 |
| Exemption | price up to € 2,500; inheritance; between spouses; in direct line |
| Payment term of the assessment | 1 month after notification, without deferral |
| Draft contract in advance, for a consumer purchase | as a rule 2 weeks before notarisation |
| Agent's commission for the buyer | at most half; only due once the seller has demonstrably paid their share |
| Grundsteuer | since 1 January 2025 under new law: value × Steuermesszahl × municipal Hebesatz |
Two more cost items to know: the notary and Grundbuch costs (at the statutory rate), and the estate agent. For the latter a legal brake has applied since the end of 2020. If the seller engages the agent, he must bear at least as much commission himself as is asked of you. So as the buyer of a home you never pay more than half, and only after the seller has paid their share and shown proof of it.
What do I pay every year after that?
As owner you pay the annual Grundsteuer, the property tax, to the municipality. The system has been completely reformed as of 2025:
- Most federal states follow the federal model.
- Five (Baden-Württemberg, Bavaria, Hamburg, Hesse and Lower Saxony) have a model of their own.
- Every municipality puts its own multiplier (Hebesatz) on it.
- Since 2025 a municipality may tax building-ready but undeveloped land more heavily.
So amounts from before the reform say little any more. With a concrete property, ask for the current assessment and count it in your monthly budget. And don't forget: after the move your Anmeldung at the new address belongs with it too.
In Vertrekklaar this is phase 5 of 5 of the journey: the same steps, but for your situation — in your order, tickable, and with the deadlines watched. See the whole journey to Germany.
What this rests on
The facts in this article come from these official pages. Rules change. When in doubt, go by the source, not this article.
- Notar.de (Bundesnotarkammer) — the Kaufpreisfälligkeit and the Vormerkung as payment condition — notar.de
- Notar.de (Bundesnotarkammer) — the Eigentumsübergang and the Unbedenklichkeitsbescheinigung — notar.de
- Beurkundungsgesetz § 17 — the two weeks for consumers before notarisation — gesetze-im-internet.de
- Grunderwerbsteuergesetz § 11 — the base rate of 3.5% — gesetze-im-internet.de
- Finanzamt NRW — Grunderwerbsteuer 6.5%, payment term and Unbedenklichkeitsbescheinigung — finanzamt.nrw.de
- BGB § 656d — the division of the estate agent's commission — gesetze-im-internet.de
- Bundesfinanzministerium — FAQ on the new Grundsteuer — bundesfinanzministerium.de
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