When buying a house, flat or plot of land, other costs are incurred in addition to the purchase price - including the legally regulated Notary fees. As property transactions in Germany are not valid without a notarised purchase contract, the notary's fees and the costs for land register entries are among the central components of the ancillary purchase costs.

Find out more in this article, How high the notary fees really are when buying a househow they are calculated, what differences there are between buying a house, flat and land and in which cases the costs are tax-deductible. You will also receive Sample calculationsa Notary fees table as well as tips on how to optimise fees.

The most important facts in brief 

• The Notary costs when buying a house are usually 1.0-1.5 % of the purchase price.
  
• For Land registry costs additionally fall around 0,5 % to.
  
• All fees are regulated in the Court and Notary Fees Act (GNotKG).
  
• The costs include, among other things: Notarisation, creation of land charge, conveyance, transfer of ownership and expenses.
  
• The buyer bears most of the notary costsThe seller only bears certain cancellation costs.
  
• Tax deductible Notary fees are only payable if the property is let or used for commercial purposes.
  
• Sample calculations and a table help with the calculation.
  

What are notary fees when buying a house?

In Germany, a notary is required by law when buying property. Without notarisation, a purchase contract would not be legally effective.

The notary takes over, among other things:

• the legally compliant drafting of the purchase agreement
  
• the verification of all land register data
  
• the settlement of the purchase price due date
  
• Communication with authorities and banks
  
• the registration of the priority notice of conveyance and later of the owner
  

The costs are based on not at costbut according to fixed fee tables in accordance with GNotKG. This means that notary fees are comparable throughout Germany.

Amount of notary fees when buying a house

Usually, the notarisation of the purchase agreement and all associated processes are 1.0-1.5 % of the purchase price to.

In addition Land registry costs in the amount of approx. 0,5 % added.

Total costs: around 1.5-2.0 % of the purchase price

Example:

• Purchase price: € 400,000
  
• Notary fees: approx. 4,000-6,000 €
  
• Land register costs: approx. € 2,000
  → Total costs: approx. 6,000-8,000 €
  

Composition of notary fees

The notary fees are made up of several components.

Notarisation of purchase contract

This is the largest cost block.
The fee is based on the purchase price, which is deemed to be the transaction value.

Creation of a land charge

If the buyer uses financing, the bank must register a land charge.
This order is also notarised by the notary.

Conveyance & transfer of ownership

The conveyance is the agreement on the change of ownership. The notary also ensures the transfer of ownership in the land register.

Expenses & VAT.

These include:

• Postage
  
• Copies
  
• Register retrievals
  
• Value added tax on all fees
  

These items are comparatively small, but unavoidable.

Land register costs in detail

In addition to the notary fees, further costs are incurred at the land registry.

New entries

• Prior notice of conveyance
  
• Transfer of ownership
  
• Land charges of the financing bank
  

Deletions

• Old land charges of the seller
  
• Usufruct or residential rights (if applicable)
  

Important: Extinguishing costs is usually borne by the seller - if he arranges for this cancellation.

Amount of the land register costs

They amount to usually around 0.5 % of the purchase price.

Notary fees for house purchase, flat purchase & land purchase in comparison

Property purchases sometimes involve more inspection work (e.g. contaminated sites), but hardly change the fees, as here too the GNotKG applies.

Who pays the notary when buying a property?

The usual practice:

Buyer pays:

• Notarisation of purchase contract
  
• Creation of a land charge
  
• Conveyance & transfer of ownership
  
• Land register costs for new entries
  

Seller paid:

• Cancellation of own land charges
  
• Cancellation of own rights (heritable building rights, usufruct, residential rights)
  

Both parties sign the contract - but the buyer bears the costsbecause he initiates the changes in the land register.

Are notary fees tax-deductible?

Whether you can claim notary costs for tax purposes depends on the use of the property.

Own use

Not deductible

In the case of owner-occupied homes, notary fees are included in private living expenses.

Letting

Deductible as income-related expenses

These include:

• Notarisation of purchase contract
  
• Creation of a land charge
  
• Land register fees
  

Commercial use / property trading

Deductible as operating expenses

In this case, the costs belong entirely to the business assets.

Sample calculations: Notary fees according to purchase price

Purchase price € 250,000

• Notary fees: approx. 2,500-3,500 €
  
• Land register costs: approx. 1,250 €
  Sum: approx. 3,750-4,750 €
  

Purchase price € 400,000

• Notary fees: approx. 4,000-6,000 €
  
• Land register costs: approx. € 2,000
  Sum: approx. 6,000-8,000 €
  

Purchase price € 650,000

• Notary fees: approx. 6,500-9,500 €
  
• Land register costs: approx. 3,250 €
  Sum: approx. 9,750-12,750 €
  

Notary costs table for house purchase

Saving tips: How to optimise notary costs

Notary fees are regulated by law - so it is not possible to make major savings. Nevertheless, some costs can be influenced.

1. avoid double notarisation

Example: separate declarations of division or two land charges instead of one.

2. clarify draft purchase agreements at an early stage

Any additional change may result in additional costs.

3. compare offers

Although the fees are fixed by law Expenses vary slightly.

 4. avoid unnecessary entries

Z. E.g. waiver of clauses not subject to prior authorisation or unnecessary rights.

5. professionally inspect the property

A smooth process prevents additional costs due to missed deadlines or contract renegotiations.
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