HBW KNOWLEDGE / BUYING
Purchase costs in Hesse: plan the full price
Property transfer tax, notary and land register fees, and any agreed estate agent commission must be included from the start.
An illustrative purchase in Hesse
For an ordinary taxable property purchase, Hesse currently charges property transfer tax at 6%. Other German states have different rates. The tax base and any special circumstances must be checked for the actual transaction.
| Item | Assumption | At a €400,000 price |
|---|---|---|
| Property transfer tax in Hesse | 6% | €24,000 |
| Notary and land register | 2% planning allowance | €8,000 |
| Buyer’s agent commission, if agreed | Illustrative 3.57% incl. VAT | €14,280 |
| Total example purchase costs | Including that commission | €46,280 |
| Overall cost before modernisation | Price plus purchase costs | €446,280 |
The 2% is a planning allowance, not a fixed fee. Actual fees depend on the transaction and statutory fee rules. Commission is not automatically 3.57%: the particular agreement and applicable rules determine the amount.
Further items for your budget
- Renovation and energy improvements needed immediately.
- Moving costs, overlapping housing expenses and new furnishings.
- For apartments: service charges, the owners’ association reserve and agreed special assessments.
- For new builds: site infrastructure, external works, ancillary construction costs and time contingencies.
When the money is needed
These items fall due at different times. Follow the tax assessment, invoices and contractual arrangements. Funds available only later do not automatically cover an earlier bill.
Your next step
Prepare a complete cost list before making a binding purchase commitment. Add the actual commission agreement, property location, modernisation needs and available liquidity. Together they determine the financing requirement.
Frequently asked questions
Are these costs included in the property price?
They are normally payable in addition to the agreed price. Check each item separately.
Can purchase costs be financed?
This depends on your circumstances and the lender. Borrowing beyond the purchase price increases the loan required and may mean higher rates and stricter criteria.
What does this mean for your plans?
Discuss your purchase price, own funds and intended borrowing with us.
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