The most important points
For many people, owning their own property is a lifelong dream, and this dream is absolutely achievable if you are well prepared. However, in addition to the purchase price, there are other costs that are easily overlooked: the incidental purchase costs. These can quickly add up to tens of thousands of euros. If you are aware of them and plan for them correctly, you can ensure that the financing remains stable and affordable.
As your real estate agent in Berlin, we are at your side and guide you step by step through this "cost jungle." We explain in an understandable way how notary fees, brokerage commissions, and real estate transfer tax are composed and how you can calculate them realistically. This turns uncertainty into clarity—and you can plan your real estate purchase confidently and with foresight.
What are incidental purchase costs?
Incidental purchase costs are all expenses incurred in addition to the actual purchase price of a property. They are binding and must be covered by your own capital, as banks in Berlin do not generally co-finance these costs. For a house or apartment, you should expect to pay a total of around 11.5% to 12.5% of the purchase price. This amount consists of three fixed components: real estate transfer tax, notary and court fees, and brokerage commission. With this knowledge, you can plan your financing securely from the outset and avoid surprises.
Overview of incidental costs when buying real estate in Berlin
Real estate transfer tax in Berlin: The biggest cost factor in detail
The real estate transfer tax in Berlin is 6.0% and is therefore the largest single item among the incidental purchase costs. It is levied on the notarized purchase price of your property. As this is a state tax, the rate varies in the different federal states.
When is real estate transfer tax due?
Real estate transfer tax is an important factor in your financial planning. You do not have to pay it immediately after signing the contract. Instead, it works as follows:
- Forwarding by the notary: The notary sends the notarized purchase agreement to the responsible tax office.
- Review by the tax office: The office reviews the transaction and sends you, the buyer, the real estate transfer tax assessment.
- Payment deadline: As a rule, you must transfer the tax within one month of receiving the notice.
Only after payment of the real estate transfer tax does the tax office issue the so-called clearance certificate. This certificate is mandatory for the land registry office to register the change of ownership. Without it, you cannot legally be registered as the new owner of the property.
Special case: Real estate transfer tax on gifts
Real estate transfer tax on gifts applies in cases where real estate is transferred free of charge, for example from parents to their children. In these cases, gift tax is levied instead of real estate transfer tax, i.e., the tax on the transfer of assets free of charge.
- Tax exemption: If you receive a property as a gift or inherit it, you do not have to pay real estate transfer tax in Germany. This is regulated by law (§ 3 No. 2 GrEStG) and always applies when the property is transferred free of charge – for example, from parents to children.
- Allowances: However, gift tax may be relevant in such cases. Fortunately, there are high allowances for this: between parents and children, this is €400,000 every ten years. This means that in most cases, no gift tax is payable.
Notary and court costs: essential protection
Notary fees for buying a house or apartment are set by law and are based on the Court and Notary Fees Act (GNotKG).
The notary plays a neutral role in this process: they ensure that the purchase is handled correctly from a legal perspective, check the formalities, certify the purchase agreement, and ensure that the change of ownership is properly entered in the land register. This means you are on the safe side and the purchase is completed reliably.
How high are the notary fees when buying a house?
When you buy a house or apartment in Berlin, you will incur costs for the notary and land registry in addition to the purchase price. These costs are required by law and serve to ensure that your purchase is legally secure and correctly processed. In total, you should budget for around 1.5% to 2% of the purchase price for these costs in Berlin.
Notary fees (approx. 1.0% to 1.5%)
The notary fees cover all services necessary for the purchase agreement and legal protection. These include, among other things:
- Notarization of the purchase agreement: The notary ensures that the agreement is legally valid and that all important points are correctly regulated.
- Preliminary notice of conveyance: This is a legal protection for buyers. It ensures that the property cannot be sold to someone else in the meantime.
- Obtaining deletion authorizations: If there are still encumbrances or rights on the property, the notary ensures that these are properly deleted.
Land registry costs (approx. 0.5%)
Land registry costs are incurred for everything related to the registration of your new ownership rights:
- Registration as owner: This establishes you as the new legal owner of the property.
- Registration of the land charge: This gives the bank the necessary security if it is financing the purchase.
Can notary fees be deducted from taxes?
Whether notary fees are tax-deductible depends on what you are buying the property for:
- Owner-occupied property: If you intend to live in the apartment or house yourself, the notary fees are considered private acquisition costs. This means that you cannot deduct these costs from your taxes.
- Rented property: If you buy a property to rent out, the notary fees are included in the acquisition costs of the apartment or house. This means that you cannot deduct the expenses in full from your taxes immediately. Instead, the amount is spread over the entire useful life of the property – this is called depreciation. In practical terms, this means that you can claim a small portion of the notary fees for tax purposes each year. For residential properties, a period of around 50 years is usually applied. In this way, the notary fees can be deducted from your taxes step by step, even if the total amount seems high at first glance.
Real estate agent commission in Berlin: Who pays what?
The brokerage commission, also known as a brokerage fee, is the remuneration for professional support in the purchase of real estate. In Berlin, the regulations have been adjusted in recent years, so that buyers now often only pay part of the commission.
Who pays the broker's commission: the buyer or the seller?
Since December 2020, there have been clear legal rules on how the brokerage commission is distributed for real estate purchases – this creates transparency and fairness:
- Shared costs: When brokering apartments and single-family homes, the buyer and seller usually split the commission 50/50.
- Limited buyer's commission: In Berlin, the total commission is often 7.14% including 19% VAT. For the buyer, this means a maximum of 3.57% of the purchase price.
- Secure payment: The buyer only has to pay their share after it has been proven that the seller has paid their share.
For you as a buyer, this arrangement means less financial burden and, at the same time, the security of being supported by an experienced real estate agent—from selecting the right property to legally compliant contract processing.
Calculation example: Additional purchase costs in Berlin
To help you plan your financing realistically, we show you step by step how to calculate the incidental purchase costs in Berlin.
What does this mean for you? The additional purchase costs of €55,350 are added to the purchase price of €500,000. You should therefore budget for a total of around €555,350.
Final tips for property buyers
Incidental purchase costs are simply part and parcel of buying an apartment or house – but with the right planning, they won't be a stumbling block, but part of a solid financial plan.
Your mini-guide to incidental purchase costs – simple and easy to understand
- Plan everything from the outset: incidental purchase costs are part of the process. Include them in your budget from the start so that you don't experience any unpleasant surprises later on.
- Use your own capital: Ideally, you should pay the additional costs from your own funds. This makes you more attractive to the bank and can secure better interest rates.
- Rely on professional help: An experienced real estate agent will accompany you every step of the way: finding suitable properties, planning viewings, concluding legally binding contracts. This will ensure that your purchase goes smoothly.
- Stay calm and keep track of everything: With good planning, you will always know what to expect. This gives you security and makes buying a property less stressful.
- Be well informed from the start: If you know all the costs and procedures, you can make an informed decision – this strengthens your confidence and ensures that your dream of owning your own home becomes a reality.
Our coming home sales team will personally support you in finding exactly the
property in Berlin that suits you. Get in touch at any time—we will reliably accompany you from the initial idea to moving in.
