What triggers the tax
A contract transferring German real estate generally triggers property transfer tax. The rate depends on the federal state. Share transactions involving property-holding entities can also be caught by separate rules.
What belongs in the tax base
The contractual allocation between land, building and movable items matters. Genuine movable inventory may be treated differently, but artificial allocations invite questions.
- Review purchase-price allocation.
- Identify fixtures versus movable assets.
- Budget tax before notarisation.
- Coordinate financing and payment dates.
Tax clearance and registration
The tax office issues clearance after the transfer tax is dealt with; this is normally needed before the buyer can be entered as owner in the land register.
Frequently asked
Who pays property transfer tax in Germany?
The contract commonly allocates it to the buyer, though statutory liability can extend further.
Is there one rate across Germany?
No. The applicable rate depends on the federal state where the property is located.
Is furniture taxed with the property?
Genuine movable items can be treated separately if realistically valued and documented.
This guide is general information on German tax law, not advice on your individual case. Rules and figures change with each tax year.