The notary and the land register (Grundbuch) cost the buyer of a commercial property roughly 0.4–0.9% of the price, including 19% VAT on the notary's services and without bank financing. That is about €8,800 at a price of €1 million and about €57,700 at €10 million; the fees are set by statute (GNotKG) and are not negotiable (§ 125 GNotKG). Their share of the price falls as the price rises, and as a general rule the buyer bears them (§ 448(2) BGB).
The dearer the property, the smaller the share of fees
Exhibit 1. At a price of €20 million, the notary and land register cost 0.44% of the price — half the share at €1 million
Sources: § 34(2) GNotKG, Table B; Gordon Real Estate Group calculation on the assumptions of Part 11 of the series German Prime Retail; amounts rounded to the euro.
The scale is degressive, so a store bought for €10 million costs only 40% more at the notary and land registry than one bought for €5 million. From €0.5 million to €5 million the full fee rises by €80 for every €50,000 of price or part thereof. From €5 million to €10 million it rises by €130 for every €200,000, and from €10 million to €20 million by €150 for every €250,000. The fee is calculated on the transaction value — the purchase price, but not less than the property's market value (§ 47 GNotKG).
For comparison: real estate transfer tax in Lower Saxony on a price of €10 million is €500,000 — almost nine times as much as the notary and land register combined.
Three fees go to the notary, two to the land registry
Exhibit 2. Five steps add up to 4.5 full fees
Source: fee schedule (Annex 1) to the GNotKG, as in force on 10 October 2026.
The first three are notarial fees, to which 19% VAT is added; the last two are land-registry court fees, without VAT. A GmbH that charges VAT on its rent can deduct the notary's VAT as input tax (see Part 11 of the series German Prime Retail).
Bank financing adds two more fees
If a bank finances the purchase, it requires a land charge (Grundschuld) as security for the loan: two fees beyond the table, both calculated on the amount of the charge. The notarial deed for it costs 1.0 fee (no. 21200 of the schedule), its registration another 1.0 (no. 14121). For a land charge of €6 million this comes to €10,454 for the notary including VAT and €8,785 for the land registry, about €19,200 in total (our calculation).
The table also leaves out other costs: the deletion of the seller's encumbrances (0.5 fee, no. 14140) and the removal of the priority notice after registration (€25, no. 14152). Nor does it include the notary's postage, capped at €20 per matter (no. 32005), or copies. If your command of German is insufficient, the cost of an interpreter comes on top (see Part 8 of the series German Prime Retail).
Implications for investors
1. Budget the fees from the table, not by rule of thumb. At a price of €5 million the notary and land register cost €41,245 (0.82% of the price), at €10 million €57,722 (0.58%), and these amounts are not negotiable.
2. Add two fees if the purchase is financed by a loan. A land charge for the bank costs a further 1.0 fee at the notary and 1.0 at the land registry, both on the amount of the charge. For a charge of €6 million that is about €19,200 (our calculation).
3. Allocate the costs in the contract and check the VAT deduction. As a general rule the buyer bears them (§ 448(2) BGB), and a GmbH that charges VAT on its rent can deduct the notary's VAT as input tax.
What to check:
• Check the value on which the fee is calculated: the purchase price, but not less than market value.
• Find out which steps the notary is instructed to carry out — each adds its own fee.
• Ask the bank for the amount of the land charge: two additional fees are calculated on it.
• Check who bears the costs under the contract if the parties depart from § 448(2) BGB.
• Have a tax adviser confirm that a GmbH charging VAT on its rent may deduct input VAT.
See also: Grunderwerbsteuer (real estate transfer tax); How much does it cost to set up and run a GmbH?; Price and yield: a table of multiples.
Sources: GNotKG §§ 34, 47, 125 and fee schedule (Annex 1), nos. 14110, 14121, 14140, 14150, 14152, 21100, 21200, 22110, 22200, 32005; BGB § 448(2); German Prime Retail series, Parts 8 and 11; Gordon Real Estate Group calculations. Law as at 10 October 2026.
Photo: Didier Weemaels / Unsplash
This page is general information and not investment, legal or tax advice.