Real estate concept:
Real estate transfer tax
19.12.2024
What is real estate transfer tax?
Real estate transfer tax is a tax that is payable on the purchase of land or property in Germany. It is paid by the buyer and is calculated as a percentage of the purchase price. The exact amount varies depending on the federal state.
See: Statista, Real estate transfer tax rate in Germany by federal state
Real estate transfer tax vs. property tax
It is important to distinguish between land transfer tax and property tax:
Real estate transfer taxOne-off tax on the purchase of property or land.
Property taxAnnual tax on the ownership of land and property.
The property tax reform will come into force on 1 January 2025. It affects all property owners and is based on a revaluation of properties in order to ensure fair and constitutional taxation. Property tax is levied by the municipalities and finances municipal tasks. Its amount is determined by the property tax value, the tax base and the assessment rate of the respective municipality.
For property buyers, the land transfer tax will therefore remain unchanged, while owners may see changes as a result of the property tax reform from 2025.
Here you will find detailed information: Federal Ministry of Finance
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