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PROPERTY

EXPLAINED: What fees do you have to pay when buying a home in Germany?

Few experiences in Germany will take you through the full German bureaucratic, tax, and legal experience the way buying property here will - and there are plenty of fees. Here's what you need to know about extra charges so you don't face a nasty surprise.

Published: 15 May 2024 12:52 CEST
Updated: 15 May 2024 15:16 CEST
A couple viewing a property in Germany
A couple view a property. Buying property in Germany comes with a whole lot of extra fees on top of the listed purchase price. Photo: dpa/RTLZWEI, EndemolShine Germany | RTLZWEI

One of the big reasons as to why property ownership is so low in Germany? The fees.

Depending on where you buy your own piece of paradise – you could be on the hook for taxes and fees that add up to over 10 percent of the purchase price! It’s a figure that’s high enough to make some wonder if the investment is worth it – and often used to explain why figures on German home ownership, at around 50 percent – are some of the lowest in Europe.

READ ALSO: Why is home ownership in Germany so low?

Land transfer tax

When you sign a contract to buy property in Germany, you’ll get a letter soon after from your local tax office – telling you how much land transfer tax you have to pay. Such a tax triggers whenever property ownership changes hands in Germany and needs to be paid by the new owner.

It’s calculated based on property value – most often the agreed purchase price – and varies depending on the federal state where the property is located.

The lowest transfer taxes are found in Bavaria – whose 3.5 percent rate is significantly lower than any other Bundesland. Five percent rates apply in Saxony-Anhalt, Mecklenburg-West Pomerania, Rhineland-Palatinate, Bremen, Lower Saxony, and Baden-Württemberg. 

Hamburg and Saxony follow with 5.5 percent rates, whereas Berlin and Hesse start going to the high end of tax rates at six percent.

At the highest end with 6.5 percent rates – lie North Rhine-Westphalia, Brandenburg, Saarland, Schleswig-Holstein, and Thuringia.

You won’t be able to add your name to the land registry – or Grundbuch – until you pay your tax.

READ ALSO: Why property prices in Germany are likely to rise this year

Real estate agent fee

In most German states, you’ll also have to pay your estate agent a commission amounting to about 3.57 percent of the property purchase price.

There are four federal states where this fee is lower though – and even a slightly lower percentage could make a big difference given the amounts involved. Hamburg and Mecklenburg-West Pomerania have commission fees of 3.18 and 3.08 percent, respectively.

At 2.98 percent, the lowest real estate commission fees are found in Bremen and Hesse.

These commission fees are also a reason why it may be an attractive option to buy a newer build property directly from a real estate developer – as you won’t pay any commission if you purchase from the developer directly. Private selling or buying foreclosed properties at a court auction also allows you to avoid this fee entirely.

If buying from a developer though, you may have to wait months or years to be able to actually move in though, as the places are often sold while still under construction.

EXPLAINED: What you need to know about buying property in Germany

Notary fee

No matter where you buy property in Germany, a notary must read out the contract in front of both parties.

This can be tedious and take hours – but the idea is to allow both parties the chance to ask questions on the terms of a neutral party.

Unfortunately, you’ll pay for the privilege and there’s no avoiding it. Notary fees are about 1.5-2 percent of the purchase price around Germany in most cases. Some shopping around might help you find a notary who charges the lower end at 1.5 percent.

If you’re not comfortable with legal German, you’re allowed to bring an accredited translator with you to the reading. This is, of course, at your own cost as well.

READ ALSO: Is it a good time to buy a home in Germany?

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PROPERTY

Is renting a flat ‘without Anmeldung’ illegal in Germany?

In today's tough housing environment, it's growing more and more common to see flats rented out without the right to register - or 'Anmelden'. The Local looks at whether this is legal under German tenancy law.

Published: 27 June 2024 15:34 CEST
Is renting a flat 'without Anmeldung' illegal in Germany?

In Germany, Anmeldung – or registration – is an essential part of the bureaucratic process, and often the first step you need to take after moving to the country.

Whether you’re opening a bank account, obtaining a residence permit, or even just getting a library card, the Meldebescheinigung, or certificate of registration, is an absolutely crucial document.

But increasingly, there seems to be a trend of rooms and flats being advertised online with the words ‘ohne Anmeldung’ – that is, without the ability to register. If you, like many renters in Germany, are seeing these words far too often, here’s what you need to know about your rights.

What does the law say about it?

According to Germany’s Bundesmeldegesetz, or Federal Registration Act, every resident in the country is required to register their primary address with their local Bürgeramt, or citizens’ office, within two weeks of moving in.

In order to do this, you’ll need what’s known as a Wohnungsgeberbestätigung, or confirmation of residence, which verifies that you’ve moved into the property either as a main tenant or subletter. 

READ ALSO: How to understand the German ‘Anmeldung’

Is my landlord required to allow me to register?

According to Wibke Werner, head of the Berlin Tenants’ Association, landlords are required to provide a certificate of registration to all of their tenants. 

“In order for tenants to fulfil their registration obligation and register their place of residence with the relevant registration authority, they require a so-called landlord’s certificate of residence,” Werner says.

“The landlord is therefore obliged to confirm that a tenant has moved in with the relevant registration authority.” 

The Federal Registration Act, which came into effect in November 2015, mandates that landlords furnish their tenants with the Wohnungsgeberbestätigung within two weeks of the move-in date.

Failure to comply can result in fines for the landlord, which can be as high as €1,000.

The confirmation must include:

  • The name and address of the landlord
  • The move-in date of the tenant
  • The address of the rented property
  • The names of all persons moving in

On the flip side, landlords also have the right to check who is currently registered at their property to make sure nobody is living there who shouldn’t be.

READ ALSO: What you need to know about the German rent brake 

What if I’m a subletter? 

Though this is an area that confuses many people, the rules are actually pretty simple: as a subletter, the main tenant or Hauptmieter(-in) becomes your landlord and should supply you with the certificate of residence instead. 

However, this can become tricky if the main tenant is subletting a room in the flat – or indeed the entire flat – without the landlord’s authorisation. 

A new tenant signs their rental agreement.

A new tenant signs their rental agreement. Photo: picture alliance/dpa/dpa-tmn | Christin Klose

“If tenants sublet the flat, they need the landlord’s authorisation,” Anja Franz of the Munich Tenant’s Association told The Local.

“If the tenant sublets without this authorisation and the landlord becomes aware of this, he can give the main tenant notice to quit after issuing a warning. I assume that the tenants are afraid that their landlord will find out that they are subletting the flat.”

READ ALSO: How to sublet your apartment in Germany

According to Franz, it doesn’t matter if the tenancy is a long-term sublet or for a restricted period: you are obliged to register in both cases, and you are also entitled to receive confirmation of that tenancy. 

Tenants’ information portal ProMietrecht have a handy template for a confirmation of residence certifcate on their website that you can offer to the main tenant. 

What can I do if the main tenant or landlord refuses to let me register?

If you’re in the tough situation of dealing with an incooperative landlord or main tenant, it’s important to first know that German tenancy law is on your side.

Though it can be intimating to approach the person renting a property to you, there are some steps you can take to try and secure your Meldebescheinung:

  • Communicate openly: Before taking any other steps, try having an open conversation with the landlord or main tenant. Let them know that they are obliged to support you in registering your tenancy and that they could face a fine or other ramifications if they refuse to help. Remind them that having the Anmeldung is crucial to your life here in Germany.
  • Offer assistance: It can move things along faster if you supply any relevant documents the landlord may need, such as a template of the certificate of residence. If the main tenant is subletting without the knowledge of the landlord, you could also make them aware that having a subletter is also generally permissable in Germany – provided they have a good reason to do so. That may convince them to take the right step and request permission from their landlord. 
  • Get legal advice: Germany has an excellent system in place to support tenants’ rights, meaning you don’t have to find a lawyer immediately. Instead, becoming a member of a tenants’ association and seeking their advice can give you a good overview of both your rights and any steps you can take to secure proof of residence. 
  • Approach local authorities: Another option is to be transparent with your local Bürgeramt and inform them of your situation. While they won’t be able to help with enforcing the law directly, they may be able to advise you on what steps to take in the meantime. 

Have you struggled to find an apartment with the right to register? Should there be tougher rules to clamp down on landlords who don’t let tenants’ register? We’d love to know your thoughts. 

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