Grunderwerbsteuer
The one-time real-estate transfer tax — part of the depreciable basis.
Grunderwerbsteuer is the transfer tax due when you buy German real estate. Each state sets its own rate, currently between 3.5 % and 6.5 % of the purchase price. It is not an annual tax and not a Werbungskosten item: it is part of the Anschaffungskosten. Split it between land and building in the same ratio as the price; the building share is depreciated with the building through AfA over the years. The tax office sends a Grunderwerbsteuerbescheid after the notarial contract; it is the evidence of the amount and date. For non-resident buyers nothing changes: the rate depends on the state where the property lies, not on the buyer's residence or nationality.
Last reviewed: by Yann Lephay.