2026-10-10 11:51

How much does it cost to buy commercial property in Germany?

On top of the price, a buyer of commercial property in Germany usually pays between 4.5% and 11% of it; in our example of a €10 million supermarket in Lower Saxony, 9.45%. The heaviest items are real estate transfer tax (Grunderwerbsteuer) — from 3.5% in Bavaria to 6.5% in four federal states — and the broker's commission, if the buyer pays it. The notary and the land registry cost a fraction of one per cent under a statutory fee schedule.

Transfer tax depends on the federal state and arises at signing

Exhibit 1. The same €10 million purchase attracts between €350,000 and €650,000 of transfer tax

Rate	Federal states	Tax on €10 million
3.5%	Bavaria	€350,000
5.0%	Baden-Württemberg, Lower Saxony, Rhineland-Palatinate, Saxony-Anhalt, Thuringia	€500,000
5.5%	Bremen, Hamburg, Saxony	€550,000
6.0%	Berlin, Hesse, Mecklenburg-Western Pomerania	€600,000
6.5%	Brandenburg, Saarland, North Rhine-Westphalia, Schleswig-Holstein	€650,000

The tax arises when the contract is signed, unless the transaction depends on a condition or an approval (§§ 1, 14 GrEStG). Its base is the entire consideration — the price plus any obligations the buyer assumes (§§ 8, 9 GrEStG); operating equipment (Betriebsvorrichtungen) does not count as part of the land (§ 2(1) GrEStG). Both parties are liable to the tax office, but the contract usually places the tax on the buyer (§ 13 GrEStG). It is due one month after the tax notice (§ 15 GrEStG), and without the tax office's clearance certificate the buyer will not be entered in the land register (§ 22 GrEStG).

Notary and land registry cost a fraction of 1%, set by statute

The fees are fixed by statute, and no other amount can be agreed (§ 125 GNotKG); by default the buyer bears them (§ 448(2) BGB). For the contract the notary charges a 2.0 fee under Table B of the GNotKG and a further 0.5 each for executing the transaction and for supervising the payment conditions, plus 19% VAT. The land registry charges a 0.5 fee for the priority notice and 1.0 for registering the owner. Fees rise more slowly than the price:

Exhibit 2. As the price rises, the fees' share falls from 0.8% to 0.4%

Price	Notary incl. VAT	Land registry	Together, % of price
€3 million	€17,600	€7,400	0.8%
€5 million	€29,000	€12,200	0.8%
€10 million	€41,000	€17,000	0.6%
€20 million	€62,100	€26,100	0.4%

Gordon Real Estate Group calculation under Table B, rounded, excluding minor outlays. If the purchase is financed with a loan, the land charge (Grundschuld) for the bank is paid for separately: about €19,000 on €6 million.

The broker and due diligence are the items that can be negotiated

The broker's commission on commercial property is freely negotiable (§ 652 BGB), and the seller often pays it. The rules on splitting it between the parties apply only to flats and single-family houses (§§ 656a–656d BGB). In our experience, due diligence on a single supermarket costs €30,000–50,000 (see Part 7 of the series German Prime Retail).

In the example in Part 11, the costs of buying a €10 million store in Lower Saxony came to €945,000. That is €500,000 of tax, €41,000 for the notary, €17,000 for the land registry, €357,000 for the broker (3% plus VAT) and €30,000 for due diligence. About €63,500 of this is VAT on the notary's and broker's services, which a GmbH can reclaim as input tax if it opts to charge VAT on the rent (Parts 7 and 11).

Implications for investors

1. Budget at the transfer-tax rate of the state where the property lies. A €10 million purchase costs €350,000 of tax in Bavaria and €650,000 in the states with a 6.5% rate — and the tax arises as early as signing.

2. Negotiate the broker's commission and the due-diligence budget, not the notary's fees. The commission on commercial property is freely negotiable and often falls to the seller; notary and land-registry fees are fixed by statute.

3. Settle the VAT question on the rent before signing. In the example in Part 11, a GmbH can reclaim about €63,500 of VAT on the notary's and broker's services only if it opts to charge VAT on the rent.

What to check:
• the tax rate in the state where the property lies, and the full base — the price plus the obligations the buyer assumes;
• who pays the broker: the contract decides, not the law;
• a separate line in the contract for operating equipment, if it is sold with the building;
• the VAT option on the rent: it decides whether the GmbH recovers the notary's and broker's VAT;
• the fees for the land charge, if the purchase is financed with a loan.

Sources: GrEStG §§ 1, 2, 8, 9, 11, 13, 14, 15, 22; state laws on the real estate transfer tax rate (as of October 2026); GNotKG §§ 34, 125, Table B, KV 14110, 14121, 14150, 21100, 21200, 22110, 22200; BGB §§ 448, 652, 656a–656d; Gordon Real Estate Group calculation, October 2026; German Prime Retail series, Parts 7 and 11. Legal position as of 10 October 2026.

Photo: Jan-Philipp Thiele / Unsplash

This page is general information and not investment, legal or tax advice.

Ilya Gordon