Glossary
Kaufnebenkosten
Kaufnebenkosten: Kaufnebenkosten (German for incidental purchase costs, i.e. the closing costs) are all the costs you pay on top of the purchase price when buying property in Germany. They cover real estate transfer tax, notary and land-registry fees, and any agent commission, and add up to 7 to 15% of the purchase price.
What are Kaufnebenkosten (closing costs)?
Kaufnebenkosten is the German term for the closing costs, or incidental purchase costs, that you pay when buying a property on top of the actual purchase price. They are made up of three main items: real estate transfer tax (Grunderwerbsteuer), notary and land-registry fees, and (where an agent is involved) the agent commission.
The total comes to between 7 and 15% of the purchase price, depending on the Bundesland and the agent arrangement. Despite that, many budget plans treat them as a footnote. On a property costing €350,000, the closing costs quickly add up to €25,000 to €50,000 that you have to pay out of your own pocket. Your nationality makes no difference: foreign buyers in Germany pay exactly the same Kaufnebenkosten as locals.
The four cost blocks at a glance
1. Real estate transfer tax (Grunderwerbsteuer, 3.5 to 6.5%) The largest single item. The rate depends on the Bundesland. Bayern charges 3.5%, while Nordrhein-Westfalen and Brandenburg charge 6.5%.
2. Notary fees (Notarkosten, about 1.0 to 1.5%) The notary notarises the purchase contract, registers the land charge (Grundschuld), and oversees completion. The fees are set uniformly across Germany in the GNotKG.
3. Land-registry fees (Grundbuchkosten, about 0.5%) The land registry office (Grundbuchamt) charges its own fees for entering the new owner and (where there is financing) the land charge into the land register (Grundbuch).
4. Agent commission (Maklerprovision, about 3.0 to 3.57%) Only applies if an agent is involved in the purchase. Since December 2020, buyer and seller split the commission equally on residential property. The buyer's share is typically 3.57% (including VAT).
Calculating Kaufnebenkosten: an example
Purchase price: €350,000 in Hessen, with an agent
| Cost type | Percentage | Amount |
|---|---|---|
| Real estate transfer tax | 6.0% | €21,000 |
| Notary fees | 1.0% | €3,500 |
| Land-registry fees | 0.5% | €1,750 |
| Agent commission (buyer's share) | 3.57% | €12,495 |
| Total | 11.07% | €38,745 |
So the real total cost of the property is not €350,000 but €388,745. In Bayern without an agent, the closing costs would be only around €17,500 (5.0% instead of 11.07%).
Good to know
- Plan for equity: Banks usually do not finance the closing costs. Anyone looking to buy should bring at least the closing costs (7 to 15% of the purchase price) as equity. With a so-called 110% financing (purchase price plus closing costs without any equity), the bank charges noticeably higher interest.
- Save by skipping the agent: If the property is sold directly by the owner, the agent commission falls away entirely. That saves 3 to 4% of the purchase price.
- Not deductible for owner-occupiers: If you live in the property yourself, you cannot claim any of the closing costs for tax. They count as incidental acquisition costs (Anschaffungsnebenkosten) only for rented property.
- Inventory lowers the transfer tax: Movable items (a fitted kitchen, an awning, a sauna) can be listed separately in the purchase contract. No transfer tax is due on that amount.
Legal basis
The individual items of the closing costs are governed by different laws: the transfer tax by the Grunderwerbsteuergesetz (GrEStG, the Real Estate Transfer Tax Act), the notary fees by the Gerichts- und Notarkostengesetz (GNotKG, the Court and Notary Costs Act), the land-registry fees by the Grundbuchordnung (GBO, the Land Register Code) in conjunction with the GNotKG, and the agent commission by sections 656a to 656d of the Bürgerliches Gesetzbuch (BGB, the German Civil Code).
Frequently asked questions
Kaufnebenkosten means closing costs or incidental purchase costs. It covers all the extra costs you pay on top of the purchase price when buying German property: real estate transfer tax (Grunderwerbsteuer), notary and land-registry fees, and any agent commission. Together they come to 7 to 15% of the purchase price.
Depending on the Bundesland and whether an agent is involved, closing costs run between 7 and 15% of the purchase price. Without an agent they sit at roughly 7 to 8.5%. With an agent, another 3 to 4% is added. Your nationality does not change these costs: foreign buyers pay the same Kaufnebenkosten as German residents.
Only for rented property. Owner-occupiers cannot claim closing costs for tax. For an investment property, the transfer tax, notary and land-registry fees, and agent commission count as incidental acquisition costs (Anschaffungsnebenkosten) and are recovered through the building depreciation.
As a rule, yes. Most banks finance only the purchase price (and sometimes the agent commission). The transfer tax, notary and land-registry fees almost always have to be paid from your own equity. That is why mortgage advisers recommend bringing at least the closing costs as equity.