Guide · 2026
The purchase price is only part of the bill: property transfer tax, notary, estate agent, maintenance and insurance come on top. This guide sets out the costs in 2026, the rules for your mortgage, building insurance and owner-occupied flats, and which cover matters from when.
According to the consumer advice centre (Verbraucherzentrale), these costs can already amount to 10 per cent of the purchase price.
Each federal state sets its own rate: in 2026 it ranges from 3.5% in Bavaria to 6.5% in Brandenburg, North Rhine-Westphalia, Saarland and Schleswig-Holstein; Hamburg has charged 5.5% since 2023. Only once you have paid the tax does the tax office issue a clearance certificate (Unbedenklichkeitsbescheinigung) – without it you cannot be entered in the land register as the owner.
A notary certifies the purchase contract. Notary and land registry fees together usually come to about 1 to 1.5% of the purchase price; the fees are fixed nationwide by law (GNotKG) and depend on the value. Important: since April 2023 you may not pay the purchase price in cash (§ 16a GwG), only by non-cash means such as a bank transfer.
Since 23 December 2020, the following applies when private buyers purchase a flat or single-family house: if the agent works for both sides, buyer and seller each pay half. If only the seller hired the agent, the seller may pass on at most half of the commission to you – and your share only becomes due once the seller has proven payment of theirs (§§ 656c, 656d BGB).
Example for Hamburg: 5.5% property transfer tax, around 1.5% for notary and land register and a share of the agent's commission quickly add up to around 10% of the price – about €40,000 on a €400,000 property. Moving, renovation and commitment interest (Bereitstellungszinsen) often come on top; many banks charge it if you do not draw down the loan within, usually, 3 to 12 months.
Banks base their calculation on your current income – the instalment should remain affordable even with higher interest rates after the fixed-rate period, during parental leave or in case of illness.
Weeks or months often pass between the notary appointment, the handover (Besitzübergang) and the land register entry – there must be no gap at any stage.
It pays for damage caused by fire, escape of water, storm from wind force 8 and hail, usually at sliding replacement value (gleitender Neuwert). Banks usually require it, but you choose the insurer freely (§ 492b BGB). From the handover, usually when the purchase price is paid, you generally bear the costs and risks of the house – cover must be in place from that day.
An existing building policy automatically passes to you with your land register entry (§ 95 VVG); you and the seller are jointly liable for the premium for the current insurance year. The sale must be reported to the insurer without delay, otherwise cover may be lost (§ 97 VVG). You may cancel within one month of the entry – with immediate effect or at the end of the insurance year (§ 96 VVG); the insurer can also cancel with one month's notice.
Flooding after heavy rain, sewage backflow, landslides or snow load are a separate module, not part of the basic cover. The Verbraucherzentrale advises every homeowner to have it; so far only around 57% of private buildings are covered. The Federal Government plans to have new building policies offered only with natural hazard cover – as of September 2026 this has not been adopted. Until then, the module is optional.
Your contents insurance moves with you: during the move you are covered in both homes, in the old one usually until two months after the move begins at the latest. Report the move and the new floor area in good time, otherwise you risk underinsurance. The tariff for the new location applies; if your premium rises as a result, you can cancel.
For a single-family house you live in or a flat you use yourself, your personal liability insurance is usually enough – for example if someone falls on your uncleared pavement. Rented-out property or undeveloped land generally needs property owner's liability insurance (Haus- und Grundbesitzerhaftpflicht). With a heating oil tank you are liable for water pollution even without fault (§ 89 WHG); many personal liability policies include tanks up to 5,000 litres, otherwise you need water damage liability insurance (Gewässerschadenhaftpflicht).
As the client (Bauherr), you are responsible for your building site. Personal liability insurance often covers smaller projects – the Verbraucherzentrale recommends policies that include building projects up to at least €100,000 in building costs – while larger ones need separate builder's liability insurance (Bauherrenhaftpflicht). Builder's risk insurance (Bauleistungsversicherung) pays for unforeseeable damage to the building works, for example from severe weather or vandalism. Fire cover during construction is often included free of charge in the later building policy.
The instalment continues even if an income is lost – for example through the death or occupational disability of the main earner.
It pays an agreed sum if the insured person dies during the term – your family can use it to repay the loan and stay in the house. Sum and term should match the financing; as the outstanding debt falls, you can choose a decreasing sum insured, which is usually cheaper. If you finance as a couple, both partners should be covered.
If the person carrying the loan can no longer work because of illness, the statutory reduced earning capacity pension is usually nowhere near enough – and it generally requires five years of insurance. Private occupational disability insurance pays an agreed monthly pension. Take it out before buying if possible; premium and acceptance depend on occupation, age and health.
It covers loan instalments in the event of death, unemployment or incapacity for work, often only for a limited time, and is readily offered together with the loan. The Verbraucherzentrale criticises it as usually very expensive, rarely paying out and full of waiting periods and exclusions; it names term life and occupational disability insurance as alternatives. If the bank requires cover in the event of death, you may choose another provider.
With a flat, you buy the flat itself (Sondereigentum) and a share of the building and plot (Gemeinschaftseigentum). Many decisions are taken by the owners' association (Eigentümergemeinschaft).
Once you move in, you pay for everything a landlord used to cover.
The order follows the typical process; some steps overlap.
This content provides general orientation. Situations and benefits mentioned are examples; the specific need, policy terms and individual advice are decisive. It does not state a price, acceptance or cover decision.
Contact and content responsibility
Owner and insurance broker authorised under section 34d(1) of the German Trade Regulation Act · Register number D-H3YB-K7WLO-18.
Expect 5.5% property transfer tax, around 1 to 1.5% for notary and land register and, where an agent is involved, at most half of the commission – together often around 10% of the purchase price.
It passes to you automatically with the land register entry. You can cancel it within one month – but only do so once your new policy starts without a gap.
No, as of September 2026 it is voluntary; the planned new rules have not yet been adopted. Consumer advocates nevertheless advise homeowners to take it out now.
No. A bank may require suitable insurance for a mortgage, but you choose the provider. The Verbraucherzentrale names term life and occupational disability insurance as alternatives.
Usually not: the association insures the building, including property owner's liability. You do, however, need your own contents and personal liability insurance.
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