Anyone buying a house or condominium in Saarland pays 6.5 percent, one of the highest real estate transfer tax rates in Germany. With a typical purchase price of 300,000 euros, that amounts to almost 20,000 euros in tax alone – in addition to notary, land registry and financing costs. We explain how this rate came about, calculate the tax using specific examples and show where you can legally save.
What is real estate transfer tax – and why is it so high in Saarland?
Real estate transfer tax is due as soon as a plot of land, house or condominium changes ownership. In principle, every purchase agreement for a property in Germany is taxable (Section 1 GrEStG). Nationwide, the law actually provides for a standard rate of 3.5 percent (Section 11 GrEStG) – but today, hardly any federal state charges this rate.
The reason lies in the 2006 federalism reform: Since then, the federal states have been allowed to set the tax rate themselves (Article 105 paragraph 2a GG). Since all revenue flows to the federal states, almost all of them took the opportunity to raise the rate. Saarland went particularly far, fully applying the currently highest rate commonly charged in Germany of 6.5 percent.
How the tax rate in Saarland has developed
Hardly any federal state has increased its rate as quickly and as often as Saarland. Within just a few years, the rate rose from 3.5 to 6.5 percent:
- until 31 December 2010: 3.5 %
- from 2011: 4.0 %
- from 2012: 4.5 %
- 2013 to 2014: 5.5 %
- since 1 January 2015: 6.5 %
Saarland therefore raised the rate four times in just four years – more often than any other federal state. Since 2015, however, the rate has remained stable; no further increase is currently under consideration. The rate applicable at the time of the notarised purchase agreement always applies for the calculation.
Calculating real estate transfer tax in Saarland
The formula is simple: purchase price × 6.5 percent. The tax base is the value of the consideration, which generally means the notarised purchase price, including components sold together with the property on a fixed basis. The result is rounded down to the nearest full euro (Section 11 GrEStG).
A few typical examples for Saarland:
- Purchase price €200,000 → €13,000 real estate transfer tax
- Purchase price €300,000 → €19,500 real estate transfer tax
- Purchase price €350,000 → €22,750 real estate transfer tax
- Purchase price €450,000 → €29,250 real estate transfer tax
The real estate transfer tax is only one part of the ancillary purchase costs. In addition, there are notary and land register costs totaling around 1.5 to 2 percent, as well as – if engaged – the estate agent’s commission. In total, you should expect ancillary costs of around 8 to 10 percent of the purchase price in Saarland, which your bank generally does not finance.
Nationwide comparison: Saarland at the top
In a comparison of the federal states, Saarland is at the top. Only three other states also charge 6.5 percent: Brandenburg, North Rhine-Westphalia and Schleswig-Holstein. At the other end is Bavaria, which is the only state to have remained at the original rate of 3.5 percent to this day.
How much the location matters is shown by an example: For a house costing 350,000 euros, €22,750 is due in Saarland, but only €12,250 in Bavaria. The state border alone makes a difference of €10,500 here.
Process: from notarization to the clearance certificate
You hardly need to worry about the process – much of it happens automatically:
- Notarization: The notary notarizes the purchase agreement and reports the sale to the tax office.
- Responsibility: In Saarland, the Merzig Tax Office is centrally responsible for real estate transfer tax, regardless of where the property is located.
- Tax assessment notice: The tax office assesses the tax and sends you the real estate transfer tax notice.
- Payment: The tax is due one month after notification of the assessment notice (§ 15 GrEStG).
- Clearance certificate: Once the tax has been paid, the tax office issues the clearance certificate (§ 22 GrEStG).
- Registration: Only with this certificate may the land registry office register you as the new owner.
Legally, the buyer and seller are jointly liable for the tax (§ 13 GrEStG). In practice, however, the purchase agreement almost always stipulates that the buyer bears the real estate transfer tax alone.
Can the real estate transfer tax in Saarland be reduced?
The tax can be completely avoided in the case of not with a normal purchase – but at 6.5 percent, it is worth examining every legal option:
- List movable items separately: Fitted kitchen, awning, sauna, or high-quality garden equipment do not belong to the land. If they are listed separately with a price in the purchase agreement, they are not included in the tax base – saving 6.5 percent of their value. However, the amounts must be realistic; otherwise, the tax office will not recognize them.
- New build – separate land and house: If you first purchase an undeveloped plot of land and only then independently commission a construction company, the tax is payable only on the land price. Caution is advised with developer offers: If the transaction is deemed a unified contractual arrangement, the tax office taxes the entire price, including the building.
- Use tax exemptions: Certain acquisitions are completely tax-exempt (§ 3 GrEStG) – for example, sales between spouses and registered civil partners, transfers to children or parents (relatives in the direct line), and properties with a value of up to 2,500 euros. Inheritances and gifts are not subject to real estate transfer tax in any event, but rather to inheritance and gift tax.
FAQ on real estate transfer tax in Saarland
How high is real estate transfer tax in Saarland in 2026?
The rate is 6.5 percent of the purchase price, making it one of the highest in Germany. It has remained unchanged since January 1, 2015.
Who pays the real estate transfer tax – buyer or seller?
Both parties are jointly liable by law. However, it is customary and usually stipulated in the purchase agreement that the buyer pays the tax alone.
When do I have to pay the real estate transfer tax?
After notarization, you will receive a tax notice from the tax office. The tax must then be transferred within one month of its notification.
Is real estate transfer tax payable when inheriting or gifting a property?
No. Acquisition through inheritance or gift is exempt from real estate transfer tax. Instead, inheritance or gift tax may apply, although generous tax-free allowances are available.
Can I deduct real estate transfer tax from my taxes?
Not for an owner-occupied property. If you rent out the property, the real estate transfer tax counts as ancillary acquisition costs and can be claimed for tax purposes together with the building through depreciation (AfA).
Conclusion
At 6.5 percent, Saarland is one of the most expensive federal states for real estate transfer tax—the result of four increases in just four years. When buying a house, this quickly adds up to more than 20,000 euros that you must fund from your own capital. Therefore, factor the tax into your budget from the outset, check whether movable items are listed separately, and seek advice from the notary on possible exemptions. This way, you keep the additional costs under control—and avoid an unpleasant surprise at the completion of the purchase.