Income Generator: Real Estate Transfer Tax

How the state and municipalities are profiting from Germany's real estate boom

The six per cent real estate transfer tax is a thorn in the side of everyone who buys a condominium in Berlin. For every apartment that changes hands for €150,000 the city's coffers are swelled by a hefty €9,000. And with roughly 23,000 sales in Berlin per year, the total figure is not inconsiderable.

Real time tax calculator

Our real time tax calculator provides you with a visual representation of real estate transfer tax income across eight German cities. In addition, total sales volumes for each of the real estate markets are displayed. Our figures are based on data provided by each of the official expert committees (Gutacheterausschüssen).

The counter shows the cumulated real estate transfer tax for condominiums in Berlin, Munich, Hamburg, Dusseldorf, Cologne, Frankfurt, Stuttgart and Dresden since 01.01.2015.

Berlin
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Real Estate Transfer Tax
München
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Real Estate Transfer Tax
Hamburg
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Real Estate Transfer Tax
Düsseldorf
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Real Estate Transfer Tax
Köln
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Real Estate Transfer Tax
Frankfurt
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Real Estate Transfer Tax
Stuttgart
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Real Estate Transfer Tax
Dresden
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Real Estate Transfer Tax

Source: own calculations based on numbers provided from expert committees

Berlin leads the pack

Berlin is benefiting most from the real estate boom. Income from the real estate transfer tax is almost twice as high as in the country's second placed city, Munich. The major income driver is the high rate of tax in Germany's capital city, a tax that not too long ago stood at 4.5%, then 5.0% and has now been increased to 6%. The tax rate in Bavaria has been frozen at 3.5%.

Of the eight cities included here, Dresden brings up the rear. Relatively few deals are done in the state capital of Sachsen's comparatively inactive real estate market. And the real estate transfer tax rate of 3.5% is also lower than elsewhere.

Record income from real estate transfer taxes

Germany's federal states were gifted €8.4 billion of real estate transfer tax income in 2013 - a record high which is certain to be beaten by 2014's incomes. Looking back to 2006, real estate transfer taxes generated €2.3 billion less. Many of the federal states have been determined to increase their share of profits from the country's real estate boom and have continually upped the real estate transfer tax rate. Depending on which state you look at, the rates vary from 3.5 to 6.5 - and the trend is ever upwards.

PART B will help you with all issues surrounding the purchase of condominiums in Berlin.


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