Purchase Costs in Bavariathe Costs Buyers Should Expect

Purchase Costs at a Glance

Worked Example: a Flat in Hof

Purchase price: €180,000, financed with a land charge of €150,000.

For a detached house in Bayreuth at €420,000, the purchase costs with an agent are correspondingly around €37,000.

Land Transfer Tax: Bavaria Is the Cheapest

For decades, Bavaria has levied only 3.5% land transfer tax – in most other federal states it is 5 to 6.5%. After notarisation, the tax office sets the tax by means of an assessment notice, and it is due within one month. Only after payment does the tax office issue the clearance certificate (Unbedenklichkeitsbescheinigung), without which you cannot be entered in the land register as the owner. More on this in our guide Land transfer tax in Bavaria.

Notary and Land Registry Fees

Notary and land registry fees are set nationwide in the Court and Notary Fees Act (Gerichts- und Notarkostengesetz, GNotKG) and are based on the purchase price. They cannot be negotiated. The notary charges for notarising the purchase contract, for completion (obtaining approvals and deletion documents) and for supervision (notice that the purchase price is due). The land registry charges for registering the priority notice of conveyance (Auflassungsvormerkung), the transfer of ownership and, where applicable, the land charge.

How Buyers Can Reduce Purchase Costs

Show movable items separately. A fitted kitchen, furniture, an awning or heating oil in the tank are not part of the property. If a reasonable amount is shown separately in the purchase contract, no land transfer tax is charged on it. The values must be realistic; the tax office may check them.

Maintenance reserve for flats: According to a ruling of the Federal Fiscal Court (Bundesfinanzhof, 2020), the share of the maintenance reserve no longer reduces the basis for assessing land transfer tax – a once widespread saving tip that no longer applies.

Separate the plot and the house construction: Anyone who buys an undeveloped plot and concludes the building contract separately with an independent construction company pays land transfer tax only on the plot. With a "single contractual arrangement" (einheitliches Vertragswerk) with the seller, on the other hand, the construction of the house is also taxed.

Further Costs After the Purchase

In addition to the purchase costs, you should plan for: the move, renovation, possibly a new kitchen, a survey before the purchase (approx. €500–1,500), buildings insurance and property tax. For flats, there is also the monthly service charge (Hausgeld).

Bavaria Compared with Other Federal States

Land transfer tax is the largest single item in the purchase costs – and it varies considerably from one federal state to another. For a purchase price of €300,000:

For buyers from Thuringia or Saxony who move across the state border to Hof, Coburg or Kronach, this is a noticeable advantage. Tax rates can change – the rate on the day of notarisation applies.

When Which Costs Are Due

Purchase costs are not incurred all at once, but are spread over several weeks:

Plan these amounts in a separate account so that they do not clash with the payment of the purchase price.

Planning Your Own Capital Properly: an Example

A couple buys a terraced house in Coburg for €280,000. The bank requires at least the purchase costs and 10% of the purchase price to come from their own capital:

With more own capital, the interest rate falls, because the bank bears less risk. Rule of thumb: 20 to 30% own capital including purchase costs leads to significantly better terms. More on this in the Financing guide and under Financing. For families, KfW development loans can supplement own capital – see Funding programmes for property.

Additional Costs for Plots and New Builds

Anyone who buys a plot and builds themselves has further costs that do not arise when buying an existing house:

• Development contributions (Erschließungsbeiträge), if the plot is not yet fully serviced (road, sewer, water) – clarify in the purchase contract who bears them. Background under Site development.
• Surveying and boundary determination by the Office for Digitisation, Broadband and Surveying.
• Utility connections for electricity, water, sewage and telecommunications: often €10,000 to €25,000.
• Soil survey, building permit, structural engineer.

Covered in detail in our guide Buying a plot.

Running Costs After the Purchase

In addition to the one-off purchase costs, your monthly expenses also change with the purchase:

• Property tax (Grundsteuer): Since 2025, Bavaria has applied its own area model. The tax is based on the plot and building area, no longer on value. For a detached house in Upper Franconia, it is usually a few hundred euros a year, depending on the municipality's assessment rate (Hebesatz).
• Buildings insurance including natural hazards: €400 to €1,200 a year depending on location and size.
• Reserves for maintenance: rule of thumb 1 to 1.5% of the building value per year for houses.
• Service charge for flats: details in our guide Flats, owners' associations and service charges.

Purchase Costs for Investors

If you let the property, you can use the purchase costs for tax purposes: land transfer tax, notary, land registry and agent's commission increase the acquisition costs. The share attributable to the building is claimed through depreciation (AfA), the share for the land is not. The costs of the land charge, on the other hand, are immediately deductible as income-related expenses (Werbungskosten). More in our guide Depreciation on property.

Purchase Costs for Different Types of Property

The make-up of purchase costs differs depending on the property:

Costs That Are Often Forgotten

In addition to the classic purchase costs, further expenses arise when buying that rarely appear in the budget:

• Commitment interest (Bereitstellungszinsen) if the loan is only drawn down months after approval
• The bank's valuation fees for assessing the property (not at all banks)
• Moving including boxes, van or removal company: €1,000 to €4,000
• Renovation before moving in: walls, floors, minor repairs
• Kitchen and furniture, if no kitchen is sold with the property
• New locks for greater security
• Double housing costs during the transition period between purchase and moving out of the rented flat

Plan a buffer of at least €5,000 to €10,000 for this. The Financing guide gives a complete overview of financing.

Costs for Sellers

Sellers also have costs, though fewer than buyers: the energy performance certificate, deletion of their own land charges, possibly an early repayment penalty from the bank, and their share of the agent's commission. If a let property is sold within the ten-year period, speculation tax may be due. You will find a complete overview in the Checklist for sellers and under Speculation tax.