# Baden-Württemberg

> Baden-Württemberg is a wealthy southern German state known for its strong automotive industry and high quality of life.

Canonical: https://www.investbud.de/en/states/baden-wuerttemberg
Last updated: 2026-10-28

Baden-Württemberg has the third-largest economy of the German states after North Rhine-Westphalia and Bavaria, with a GDP of 667 billion euros in 2025. About 11.2 million people lived here at the end of 2025. When you buy, you pay 5.0% property transfer tax. You can see purchase prices, rents and gross yield for Baden-Württemberg in the live figures at the top of this page.

- Transfer Tax: 5.0%
- Capital: Stuttgart
- Population: 11,2 million
- Area: 35.751 km²
- Economy centered on the car industry and mechanical engineering
- About 11.2 million inhabitants at the end of 2025
- Transfer tax of 5.0%; only Bavaria charges less
- Unemployment rate of 4.7% in September 2026, second lowest of the states

## Real Estate Market

Many jobs in the state depend on engineering, technology and manufacturing; in September 2026 the unemployment rate of 4.7% was the second lowest of the German states, after Bavaria. Towns around Stuttgart, Karlsruhe and Freiburg are often connected by S-Bahn or regional train.

- In Stuttgart, the valley basin and its slopes limit the land available for building

## Transfer Tax Details

Baden-Württemberg levies a Grunderwerbsteuer (property transfer tax) of 5.0%. Only Bavaria charges less, at 3.5%; Lower Saxony, Rhineland-Palatinate, Saxony-Anhalt and Thuringia also charge 5.0%. On a 300,000 euro purchase, that is 15,000 euros in transfer tax. On top come notary and land registry fees of about 1 to 1.5% of the price and, where applicable, a broker's commission. Include all of these costs in your yield calculation.

## Investment Cities

The larger cities in Baden-Württemberg differ in price level, employers and tenants.

- Stuttgart: The state capital; median full-time wages in 2025 ranked fourth among all German districts
- Karlsruhe: Home of the Karlsruhe Institute of Technology (KIT), with many students
- Freiburg: A university city near the French and Swiss borders
- Heidelberg: A university city with students and researchers from Germany and abroad

## Practical Tips

- In mid-sized cities such as Heilbronn or Reutlingen, compare the gross yield with the live figures before you buy
- In the Stuttgart region, check the distance to the nearest S-Bahn station. For tenants who commute into the city, travel time counts

## Frequently Asked Questions

### What is the property transfer tax rate in Baden-Württemberg?

Baden-Württemberg charges a Grunderwerbsteuer of 5.0% on the purchase price. Only Bavaria charges less, at 3.5%, while four states charge 6.5%.

### Is Stuttgart a good city for property investment?

Median full-time wages in Stuttgart ranked fourth among all German districts in 2025. Before you buy, run the rental yield for each apartment with a realistic net rent and all costs.

### What rental yields can I expect in Baden-Württemberg?

You can see the current gross yield for Baden-Württemberg at the top of this page. For each city and each apartment, check the yield with a realistic net rent and all costs.