Real estate transfer tax is a significant cost factor when purchasing property. We explain the current tax rates, exemptions and structuring options for 2026.
Real Estate Transfer Tax: A Significant Cost Factor
Real estate transfer tax (Grunderwerbsteuer, GrESt) is one of the largest ancillary costs associated with property acquisitions. Depending on the federal state, it ranges between 3.5 and 6.5 per cent of the purchase price. For a property valued at 500,000 euros, this can amount to up to 32,500 euros.
Current Tax Rates by Federal State
Lower Saxony currently levies 5.0 per cent. The lowest rates apply in Bavaria and Saxony at 3.5 per cent, while the highest rates of 6.5 per cent are charged in Brandenburg, North Rhine-Westphalia, Schleswig-Holstein, Saarland and Thuringia.
Tax Base
The real estate transfer tax is calculated based on the purchase price (§ 8 Abs. 1 GrEStG). Inventory items such as fitted kitchens or furniture are not subject to real estate transfer tax and should be listed separately in the purchase agreement.
Exemptions and Reliefs
Acquisitions Between Spouses
Property transfers between spouses and registered civil partners are exempt from tax pursuant to § 3 Nr. 4 GrEStG.
Acquisitions Upon Death
Property transfers upon death are exempt pursuant to § 3 Nr. 2 GrEStG.
Acquisitions Between Direct Relatives
Transfers between relatives in direct line are tax-exempt pursuant to § 3 Nr. 6 GrEStG — i.e. between parents and children as well as grandparents and grandchildren.
Structuring Options
Share Deal Instead of Asset Deal
Since the Real Estate Transfer Tax Act 2021, the transfer of 90 per cent or more of the shares in a property-holding company triggers real estate transfer tax (§ 1 Abs. 2a, 2b GrEStG).
Separately Listing Inventory
Items not forming part of the real property — such as fitted kitchens, saunas or awnings — are not subject to real estate transfer tax. Listing them separately in the purchase agreement reduces the tax base.
Real Estate Transfer Tax in Corporate Restructurings
Restructuring transactions may be exempt under certain conditions pursuant to §§ 5-7 GrEStG. The tax relief is subject to a five-year pre- and post-retention period.
Procedural Notes
The notary reports the purchase agreement to the tax office. The tax clearance certificate required for the transfer of ownership is only issued after payment has been made. Be sure to factor the real estate transfer tax into your financing plan in good time.
Conclusion
Through careful structuring of the purchase agreement and forward-looking planning, costs can be reduced. The experts at compleneo provide individual advice on optimisation options for your property acquisition.
