Anyone buying a property in Brandenburg pays the highest real estate transfer tax rate in Germany at 6.5 percent—alongside North Rhine-Westphalia, Saarland and Schleswig-Holstein. Particularly in the expensive Berlin commuter belt, this quickly adds up to an additional five-figure burden that hardly any bank will finance. We explain exactly how high the tax is, how to calculate it and where you can legally save.
What is real estate transfer tax?
Real estate transfer tax is a one-time tax incurred when purchasing a plot of land, a house or a condominium. Its legal basis is the Real Estate Transfer Tax Act (GrEStG). Tax is imposed on every transaction aimed at transferring ownership of a property located in Germany—usually the notarized purchase agreement (Section 1 GrEStG).
Nothing proceeds with the purchase without payment of the real estate transfer tax: The tax office only issues the so-called clearance certificate after payment. Without this document, the land registry office will not register the new owner (Section 22 GrEStG). The tax is therefore an unavoidable step on the way to ownership.
Under the law, the tax debtors are the buyer and seller jointly, as so-called joint and several debtors (Section 13 GrEStG). In practice, however, the purchase agreement almost always stipulates that the buyer alone bears the real estate transfer tax. If the buyer does not pay, the tax office can also approach the seller.
How high is the real estate transfer tax in Brandenburg?
In Brandenburg, the real estate transfer tax amounts to 6.5 percent of the purchase price. The state has levied this rate since July 1, 2015. Previously, it had been 5.0 percent since 2011; before that, the nationwide standard rate of 3.5 percent applied.
Why does Brandenburg differ from federal law? In Section 11, the GrEStG still specifies 3.5 percent as the standard rate. Since the 2006 federalism reform, however, the states have been allowed to set the tax rate themselves (Article 105 para. 2a of the Basic Law). Brandenburg made use of this option and has ranked at the top ever since.
The difference becomes clear when comparing the federal states. So much Real estate transfer tax is incurred on a purchase price of 500,000 euros:
- Brandenburg (6.5%): 32,500 euros
- Bremen (5.5%): 27,500 euros
- Thuringia (5.0%): 25,000 euros
- Bavaria and Saxony (3.5%): 17,500 euros
The difference between Brandenburg and Bavaria alone is 15,000 euros at this purchase price. For buyers weighing Berlin against the surrounding area, the tax rate is therefore a significant location factor—especially since Berlin itself is also high at 6.0 percent.
How to calculate real estate transfer tax
The calculation is simple. You multiply the tax base by the tax rate of 6.5 percent. The tax base is the value of the consideration, which is generally the purchase price agreed in the purchase contract (Section 8 and Section 9 GrEStG). This also includes assumed encumbrances such as a reserved right of residence.
A few examples show how quickly the amounts increase:
- 300,000 euros purchase price: 19,500 euros real estate transfer tax
- 450,000 euros purchase price: 29,250 euros real estate transfer tax
- 600,000 euros purchase price: 39,000 euros real estate transfer tax
- 750,000 euros purchase price: 48,750 euros real estate transfer tax
A legal opportunity lies in the inventory sold with the property: movable items such as a fitted kitchen, a sauna or an awning are not part of the land. If they are listed separately in the purchase contract with realistic values, they reduce the tax base. For a separately listed kitchen worth 15,000 euros, you can save around 975 euros in tax. It is important that the amounts remain verifiable—the tax office will not accept excessive valuations.
The commuter-belt effect: Why buying around Berlin becomes particularly expensive
The high rate hits buyers in the area surrounding Berlin twice. Since 6.5 percent has a greater impact the higher the purchase price—and prices in the inner commuter belt are among the highest in all of Brandenburg. In sought-after surrounding municipalities such as Potsdam, Kleinmachnow, Teltow, Stahnsdorf or Falkensee, purchase prices are significantly above the state average.
An example: For a detached house in Kleinmachnow costing 650,000 euros, you pay 42,250 euros in real estate transfer tax alone—before notary fees, land registry costs or moving expenses are even taken into account. If you could hypothetically move the same house to Bavaria, you would pay 22,750 euros.
There are also the other ancillary purchase costs. In addition to the Real estate transfer tax, notary fees, and land register registration usually amount to around 1.5 to 2.0 percent of the purchase price. If a broker is involved, the buyer and seller generally share the commission since the end of 2020. All in all, buyers in Brandenburg should expect purchase-related ancillary costs of around 8 to 12 percent. Crucially, the bank usually does not finance these ancillary costs – they must be covered from equity.
When you do not have to pay real estate transfer tax
Not every transfer of ownership is taxed. The law provides for several exceptions (§ 3 GrEStG):
- Purchase price up to 2,500 euros: If the consideration remains below this exemption threshold, no tax is payable. If it is exceeded, however, the entire amount is taxable.
- Inheritance and gifts: The gratuitous transfer of real estate is exempt from real estate transfer tax (inheritance or gift tax applies instead).
- Spouses and registered civil partners: A purchase between partners is tax-free.
- Relatives in the direct line: If parents sell to their children or vice versa, the tax is waived. The same applies to stepchildren and children-in-law.
- Division of assets after divorce: If an ex-partner transfers their share, the transaction is exempt.
Process: From notarization to registration in the land register
The notary reports the notarized purchase agreement to the competent tax office. The tax office then issues the real estate transfer tax assessment notice. The tax becomes due one month after the notice has been served (§ 15 GrEStG). For financed purchases, the tax office generally does not grant a deferment.
As soon as you have paid, the tax office issues the certificate of clearance and forwards it to the notary. Only then can the transfer of ownership be registered in the land register. Allow time for this step: Several weeks often pass between notarization and registration in the land register.
FAQ on real estate transfer tax in Brandenburg
Who pays the real estate transfer tax, the buyer or the seller?
Legally, both are jointly and severally liable. In practice, however, the buyer almost always pays the real estate transfer tax, as is usually stipulated in the purchase agreement.
When is the real estate transfer tax due?
One month after the tax assessment notice has been served. The tax office sends the notice after the notary has reported the purchase agreementhas reported it – usually a few weeks after the notary appointment.
Can I reduce the real estate transfer tax?
You cannot influence the tax rate itself. However, you can list movable inventory sold with the property, such as a fitted kitchen, separately in the purchase agreement. These items are not part of the tax base and reduce the tax, provided they are valued realistically.
Do I also pay real estate transfer tax on construction costs when building a new property?
That depends on how the contract is structured. If you purchase an undeveloped plot and independently commission a construction company, the tax is payable only on the purchase price of the land. If the plot and turnkey house form a single contractual arrangement – as in a developer purchase –, the tax office taxes the total price, including construction costs.
Is real estate transfer tax tax-deductible?
Not for a property you occupy yourself. If you rent out the property or use it commercially, the real estate transfer tax is counted among the acquisition-related costs and can be claimed proportionally through depreciation of the building.
Conclusion: The highest rate makes planning essential
At 6.5 percent, Brandenburg charges the highest real estate transfer tax rate in Germany – and this is particularly significant in the high-priced areas surrounding Berlin. Even with an average purchase price, the tax adds up to a five-figure amount that buyers must finance from their own capital. Therefore, factor the real estate transfer tax in from the outset, check possible exemptions, and clearly list any inventory sold with the property. Anyone who plans the ancillary costs realistically will not experience any unpleasant surprises at the notary appointment.