# Nebenkosten

> Closing costs including taxes, notary, registration, and agent fees

Canonical: https://www.investbud.de/en/glossary/nebenkosten
Last updated: 2026-10-28

Nebenkosten (closing costs) in Germany come to about 4.5 to 11.6% of the purchase price, depending on the state and on whether a broker is involved. They include Grunderwerbsteuer (3.5 to 6.5%), notary and land registry fees (together about 1 to 1.5%) and, where there is a broker, the buyer's share of the commission. Banks usually expect you to pay them from equity.

For a €300,000 property in Berlin: Transfer tax €18,000 + Notary €4,500 + Registry €1,500 + Agent €10,710 = €34,710 total.

Nebenkosten, the closing costs of a purchase, are one of the largest items when buying property in Germany. At up to about 11.6% of the purchase price, they usually come out of your own equity, and they are a key reason long holding periods matter for German property investment.

Practical Example: Nebenkosten Calculation for Two Scenarios: Scenario A, Munich (Bavaria): purchase price €400,000. Grunderwerbsteuer: 3.5% = €14,000. Notary: 1.0% = €4,000. Grundbuch: 0.5% = €2,000. Broker (buyer share): 3.57% = €14,280. Total Nebenkosten: €34,280 (8.57%). Scenario B, Cologne (NRW): purchase price €400,000. Grunderwerbsteuer: 6.5% = €26,000. Notary: 1.0% = €4,000. Grundbuch: 0.5% = €2,000. Broker (buyer share): 3.57% = €14,280. Total Nebenkosten: €46,280 (11.57%). The €12,000 difference comes entirely from the higher transfer tax in NRW.

## Complete Breakdown of German Nebenkosten

German Nebenkosten have four parts. The Grunderwerbsteuer is the largest and depends on the federal state. Notary and land registry fees are set by statute in the GNotKG. The broker commission applies only when a broker is involved; for apartments and single-family houses, buyer and seller have shared it since December 2020 (§ 656c BGB).

- Grunderwerbsteuer (property transfer tax): 3.5 to 6.5% depending on the federal state, the largest part
- Notarkosten (notary fees): the larger part of the roughly 1 to 1.5% that notary and land registry cost together
- Grundbuchkosten (land registry fees): court fees of the land registry for the ownership transfer and any Grundschuld
- Maklergebühr (broker commission): at most half of the total commission, which runs at 5.95 to 7.14% including VAT
- Private sales without a broker: no commission

## How Nebenkosten Vary by Location and Deal Type

The biggest variable is the Grunderwerbsteuer, from 3.5% in Bavaria to 6.5% in Brandenburg, North Rhine-Westphalia, Saarland and Schleswig-Holstein. Whether a broker is involved is the second.

- Bavaria: about 8.6% in total with a broker (3.5% tax, 1.5% notary and registry, 3.57% commission)
- NRW and Brandenburg: about 11.6% in total with a broker (6.5% tax)
- Private sale without a broker: up to 3.57% of the price saved
- On €300,000, the gap between Bavaria and the 6.5% states is €9,000
- Notary and land registry fees are set by statute and are the same everywhere for the same value

## Impact of Nebenkosten on Your Investment Return

Nebenkosten do not add to the property's value, so they reduce your equity position at once. If you buy for €300,000 in a state with 6.5% transfer tax and pay a broker, closing costs come to about €34,700; the property has to gain about 11.6% before the sale price covers the capital you put in. Long holding periods spread these costs over more years of rent.

- Nebenkosten are not recovered on sale
- They raise the capital you put in by up to about 11.6% of the price, which lowers your return on equity
- German banks usually do not finance Nebenkosten; they come from your savings
- For a rented property held more than ten years, the gain on sale is tax-free (§ 23 EStG)

## Practical Tips

- Budget Nebenkosten at the upper end when you plan your equity, and keep a reserve for costs outside them, such as a survey or renovation planning.
- When comparing properties in different states, add the full Nebenkosten to the price: a cheaper property in a high-tax state can cost more in total than a pricier one in Bavaria.

## Frequently Asked Questions

### Can Nebenkosten be financed through the mortgage in Germany?

Usually not. German banks expect the closing costs to come from your own equity. Financing above the purchase price is rare and costs more interest, so plan to have the full Nebenkosten available in cash.

### Are Nebenkosten tax-deductible for investment properties in Germany?

For a rented property they are part of the acquisition cost. The share that falls on the building is depreciated with it: 2% a year for buildings completed after 1924 and before 2023, 3% for buildings completed from 2023 (§ 7(4) EStG). The share for the land cannot be depreciated.

### How have the 2020 commission-sharing rules changed Nebenkosten for buyers?

Since 23 December 2020, § 656c BGB applies to apartments and single-family houses: if buyer and seller both engage the broker, they pay the same; if the seller engaged the broker, the buyer pays at most half. With a total commission of 5.95 to 7.14% including VAT, that is at most 2.98 to 3.57% for the buyer. Commercial property is not covered.