Buying Real Estate in Germany: What Additional Costs Can a Buyer Expect?

Buying real estate in Germany appeals to many foreigners, but the actual cost of the transaction often exceeds the price listed in the ad by 9–15%. The buyer’s budget must account for taxes, notary fees, real estate agent commissions, and land registry fees, and the amount of these charges varies by federal state. Learn more about the hidden costs of buying a home in Germany, the transaction process, and the rights of foreign buyers

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Germany remains one of the most popular countries for foreigners to buy real estate. The price listed in the ad is usually only a portion of the total cost of the transaction—taxes, notary fees, and other mandatory payments are added to it. Finance.ua discusses the specifics of how the final cost of real estate in Germany is calculated.

We’ll explain below what additional costs the buyer will have to pay, how the transaction is finalized, and whether foreigners can obtain a residence permit after purchasing a home.

Are you planning to buy a home in Germany and want to avoid hidden costs?

Visit Ukraine’s real estate lawyers will review the documents for your chosen property, calculate the actual budget for the transaction taking into account taxes and fees in the specific federal state, and guide you through the process until the details are entered into the Grundbuch.

How much extra will you need to pay when buying a home in Germany?

In addition to the property price listed in the ad, there are mandatory associated fees that increase the total transaction cost by 9–15%. For example, purchasing an apartment for 350,000 euros could end up costing the buyer nearly 400,000 euros by the time the transaction is finalized.

These expenses have a separate name in Germany—Kaufnebenkosten. They include taxes, professional services, and administrative fees, without which it is impossible to complete the transaction.

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Mandatory Additional Costs When Buying Real Estate in Germany

Kaufnebenkosten consist of several main expense categories:

• real estate transfer tax (Grunderwerbsteuer)—ranging from 3.5% to 6.5% depending on the federal state;
• notary fees and registration in the land registry (Grundbuch)—approximately 1.5–2% of the property’s value;
• real estate agent’s commission—about 3–3.57% when purchasing through an agent;
• bank fees, mortgage processing, as well as moving costs and potential repairs.

The purchase tax rate varies by region. Buyers in Bavaria pay the lowest rate—3.5%—while in other federal states the rate reaches 6.5%. Due to this difference, an apartment with identical specifications in different regions will have a different total cost.

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How is a real estate purchase transaction finalized in Germany?

The purchase of real estate in Germany takes place exclusively with the involvement of a notary. The notary verifies the legality of the transaction, prepares the documentation, and registers the new owner in the land registry.

The procedure typically includes the following steps:

1. the buyer and seller agree on the terms of the future transaction;
2. the buyer receives a draft contract for review and consideration;
3. after the contract is signed, tax payments are made and the transaction is settled with the seller;
4. ownership is established only after the details are registered in the Grundbuch land registry.

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What should you check before signing the contract?

Before concluding the transaction, the buyer should carefully review all documents related to the property. Particular attention should be paid to checking for any encumbrances, the building’s energy certificate, and the amount of monthly maintenance fees (Hausgeld).

It’s also important to clarify exactly what is included in the apartment’s price. The contract must clearly specify whether a kitchen, appliances, or a parking space are included—this will help avoid misunderstandings after the deal is finalized.

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Can foreigners buy real estate in Germany?

Non-residents have nearly the same rights to purchase housing as German citizens. Neither German citizenship nor a permanent residence permit is required to close a deal.

When processing a mortgage, the bank verifies the applicant’s income level, credit history, and documents proving the source of funds. A foreign buyer typically needs to prepare the following set of documents:

• passport and proof of residence;
• tax ID number, if available;
• documents proving the source of funds;
• a German bank account and translations of supporting documents.

How to Obtain a Permanent Residence Permit and Resident Status in Germany in 2026 — we explain in this article.

Does purchasing real estate grant the right to reside in Germany?

Purchasing an apartment or house in Germany does not automatically grant the owner the right to a residence permit or visa. The country does not have a so-called “golden visa” program for real estate investors.

Ownership of a home may only be considered as proof of financial capacity when reviewing specific immigration applications.

Remember! Buying real estate in Germany involves legal complexities, tax nuances, and risks that are difficult to assess on your own. Visit Ukraine’s real estate lawyers will review the documents for your chosen property, guide you through the transaction at every stage, and explain the specifics of taxation in the relevant federal state. This support will help you account for all associated costs before signing the contract and avoid unexpected payments.

Schedule a consultation with a Visit Ukraine real estate lawyer and complete your home purchase in Germany safely, transparently, and without unexpected costs!

Reminder! In our previous article, we discussed how much housing will cost in Germany in 2026.

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Products from Visit World for a comfortable trip:

Checklist for obtaining a visa and necessary documents in Germany;

Legal advice on business issues in Germany;

Travel insurance for foreigners in Germany;

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