Cost of Transferring a House in 2026: Notary, Land Registry, Tax

What "transferring a house" means legally

Transferring a house is the notarised transfer of ownership of a property followed by re-registration in the land register (Grundbuch). Notarisation is mandatory because a contract for the transfer of real property requires notarial form under Section 311b paragraph 1 BGB.

The term covers several case groups with different cost consequences:

• the gratuitous gift (for example parents to a child),
• the transfer for consideration (a purchase, including between relatives),
• the mixed gift, in which a partial consideration is agreed (for instance a payment to siblings or the assumption of encumbrances).

This classification determines whether real estate transfer tax, gift tax or both come into consideration. The following explanations assume the frequent variant: a gratuitous transfer to close relatives. Special cases such as a mixed gift, a reserved right of residence or a usufruct shift the cost and tax structure and have to be examined separately.

The types of cost at a glance

The following table names the types of cost and their basis of assessment without flat amounts, because these depend on the individual case.

Notary fees (GNotKG)

Notary fees follow the Courts and Notarial Costs Act (GNotKG). The basis is the transaction value, which for contracts and declarations is determined by the value of the legal relationship that is the subject of the notarisation (Section 97 GNotKG). From the transaction value the value-based fee follows under Section 34 GNotKG (table A or B), which is then multiplied by the respective fee rate of the schedule of costs.

Important for practice: where several declarations stand in a relationship of dependency, the same subject of notarisation can be present, so that the transaction value is determined only by one value under Section 109 GNotKG and is not counted more than once. Additional, independent declarations (for example the creation of a usufruct) can by contrast increase the transaction value and thereby the fee.

A reliable figure only arises once the transaction value and all notarised matters are established. For an initial orientation, use the official cost calculator of the Federal Chamber of Notaries. A fixed percentage rule or a universal cost range would be inaccurate.

Land registry fees

For the registration of the change of ownership, a fee is charged by the land registry under the GNotKG. Here too: the amount arises from the transaction value (Section 34 GNotKG) and the applicable fee rate. The relevant transaction value is generally the fair market value of the property (Section 46 GNotKG). Where additional rights are registered (for example a right of residence or a usufruct), separate fees may arise for these. A flat statement of "0.5 percent of the fair market value" does not correctly reflect the statutory system.

Gift tax (Schenkungsteuer)

For a gift, gift tax only arises to the extent that the taxable acquisition exceeds the personal exemption. The exemptions follow from Section 16 ErbStG:

The exemption applies separately per donor and per recipient and becomes usable again after ten years. Acquisitions from the same person within ten years are aggregated under Section 14 ErbStG. Above the exemption, the graduated tax rate under Section 19 ErbStG applies:

Decisive is the tax value of the acquisition under the valuation rules, not automatically the fair market value. From this value, deductible estate or acquisition charges are taken into account (Section 10 ErbStG). The taxable acquisition is rounded down to full 100 EUR (Section 10 paragraph 1 ErbStG). Section 19 paragraph 3 ErbStG also contains a hardship adjustment on the transition into a higher tariff band.

Real estate transfer tax (Grunderwerbsteuer): when it applies and when not

Here is the most important point that many guides present incorrectly. Decisive is the wording of Section 3 GrEStG:

• Pure gift (Section 3 No. 2): Gifts of real property between living persons within the meaning of the ErbStG are exempt from real estate transfer tax, and this regardless of the degree of kinship. A pure gift to a person outside the family is therefore also exempt from real estate transfer tax. It is, however, subject to gift tax, there with significantly lower exemptions. Exception: for a gift subject to a charge, the value of such charges is subject to real estate transfer tax to the extent that these are deductible for gift tax purposes (Section 3 No. 2 sentence 2).
• Spouse or civil partner (Section 3 No. 4): The acquisition of real property by the spouse or civil partner of the transferor is exempt. This also applies to a purchase.
• Relatives in the direct line (Section 3 No. 6): The acquisition by persons who are related to the transferor in the direct line is exempt. Descendants are treated as equal to stepchildren, and the persons named as equal to their spouses or civil partners. This too applies to a purchase.

From this follows the correct classification:

• Parents to child: a pure gift is exempt from real estate transfer tax under No. 2, a transfer for consideration (a sale) is exempt under No. 6.
• Between spouses: exempt from real estate transfer tax under No. 4.
• Between siblings: siblings are relatives in the collateral line, not in the direct line. A pure gift between siblings is indeed exempt from real estate transfer tax under No. 2 (in return there is gift tax, tax class II, exemption 20,000 EUR). A purchase between siblings is by contrast not exempt under No. 6 and is therefore subject to real estate transfer tax.

The flat statement that sales within the family are always taxable, or that gifts outside the family are always subject to real estate transfer tax, is therefore inaccurate. The exact real estate transfer tax rate varies by federal state and has to be examined in the individual case.

Calculation scheme for gift tax with disclosed assumptions

The following scheme shows the calculation method. It applies expressly only under the assumptions stated. If the assumptions differ, the result changes.

Assumptions:

1. The property belongs to both parents in equal halves. The actual ownership shares have to be checked in the land register.
2. Each parent transfers their share gratuitously to the same child. These are two separate acquisitions from two different donors, each with its own exemption under Section 16 ErbStG.
3. Decisive is the tax value under the Valuation Act. It is set here, in a simplified way, equal to the assumed value and has to be determined separately in the individual case.
4. Within the last ten years there were no relevant prior acquisitions from the same donors (Section 14 ErbStG).
5. It is a pure gift without consideration or charge.

Example: assumed total tax value 1,000,000 EUR, transfer to one child (tax class I).

Calculation per parent (donor):

• transferred share: 500,000 EUR
• less exemption (Section 16 paragraph 1 No. 2): 400,000 EUR
• taxable acquisition: 100,000 EUR
• tax rate under Section 19 ErbStG, tax class I, band up to 300,000 EUR: 11 percent
• gift tax per parent: 11,000 EUR

With two parents as separate donors, this example results in gift tax of 22,000 EUR in total. If the acquisition attributable to one donor is below the respective exemption, no gift tax arises to that extent.

There is no flat overall exemption limit for a married couple and no savings guarantee. What is decisive are the actual ownership shares, the tax value, possible prior acquisitions and any consideration.

Usufruct and right of residence: effect without a fixed rate

If a donor reserves a usufruct or a right of residence, this reduces the value of the gratuitous acquisition and thereby the taxable acquisition. The capitalised value of such a right is assessed under the Valuation Act and depends in particular on the annual value of the use and on the statistical life expectancy of the beneficiary. Depending on the constellation, the gift tax can thereby fall or be eliminated entirely.

A fixed saving rate of 30 to 50 percent or a fixed amount cannot be generalised seriously. The specific amount has to be calculated individually. It should also be noted that a reserved usufruct works differently from a charge assumed by the recipient. Assumed, deductible charges can trigger a part subject to real estate transfer tax under Section 3 No. 2 sentence 2 GrEStG. Whether and to what extent a usufruct is worthwhile belongs in individual advice.

Special case: mixed gift

If parents transfer the house to a child who pays off the siblings or assumes encumbrances in return, there is no longer a pure gift but a mixed gift. It is split into a part for consideration and a gratuitous part: the gratuitous part is subject to gift tax, the part for consideration can be relevant for real estate transfer tax.

Whether the part for consideration actually triggers real estate transfer tax depends on the relationship of the parties. Between persons in the direct line (parents and child), the exemption under Section 3 No. 6 GrEStG applies; between spouses, that under No. 4. There is no fixed fifty percent threshold above which a transaction would become entirely for consideration. The valuation of consideration and value has to be documented cleanly towards the tax office. Anyone who wants to treat several children equally should plan the payment carefully. The procedure is described in the article Transferring a house: paying off siblings.

Decision aid: which questions to clarify in advance

Before you calculate costs, clarify these points. They determine the tax and cost consequence more strongly than any rule of thumb:

1. Who owns the property and in what shares? Check the current land register.
2. Who is transferring to whom? The family relationship determines tax class and exemption.
3. Is it a pure gift, a mixed gift or a purchase? The real estate transfer tax depends on this.
4. How high is the tax value of the property? It has to be determined separately and is not to be equated with the fair market value.
5. Were there already gifts from the same donor in the last ten years (Section 14 ErbStG)?
6. Are rights of use such as a usufruct or a right of residence to be reserved?
7. Are there persons entitled to a compulsory share (Pflichtteil) who have to be taken into account?

What many overlook: possible follow-up costs

The direct transfer costs are not the whole story. Without reliable, generally valid frequency or loss figures, it can only be noted qualitatively which follow-up costs should typically be examined:

• Compulsory share and supplementary compulsory share claims of further relatives when one child is favoured.
• Reclaim and equalisation questions, for instance on the impoverishment of the donor or the insolvency of the recipient.
• Tax notification obligations: a gift acquisition subject to tax must in principle be notified to the tax office within three months (Section 30 ErbStG). For notarised gifts there are simplifications, because the notary handles the notification.
• Valuation differences on a later examination by the tax office.
• Costs of a later adjustment or cancellation, which again has to be notarised.

The specific likelihood and amount of these items can only be assessed in the individual case. How the compulsory share mechanism works is dealt with in the article Transferring a house to one child and the compulsory share.

Frequently asked questions

What does it cost to transfer a house?

The cost is made up of notary and land registry fees under the GNotKG and a possible gift tax. Notary and land registry are based on the transaction value and the specific matters notarised, not on a uniform percentage rule. For an initial estimate, use the cost calculator of the Federal Chamber of Notaries. Gift tax only arises if the taxable acquisition exceeds the exemption under Section 16 ErbStG.

Are the notary fees negotiable?

No. The statutory fees under the GNotKG are the same for the same notarisation with every notary. Only additional services and disbursements can vary. Anyone who comes to the appointment prepared avoids unnecessary extra effort.

Is there a calculator for the cost of a house transfer?

For the notary fees, the cost calculator of the Federal Chamber of Notaries is an official orientation. The gift tax can be determined on the basis of the exemptions (Section 16 ErbStG) and the tax rates (Section 19 ErbStG), separately per donor and recipient.

How can I reduce the gift tax?

Conceivable options include: distribution over several ten-year periods in order to use exemptions more than once (Section 14, Section 16 ErbStG), reduction of the tax value through a reserved usufruct or a right of residence (amount individual under the Valuation Act) as well as distribution among several donors or recipients. Arrangements such as a chain gift (Kettenschenkung) are legally sensitive and have to be examined in the individual case for their tax recognition.

Does real estate transfer tax apply to the gift?

A pure gift is exempt from real estate transfer tax under Section 3 No. 2 GrEStG, regardless of the degree of kinship. It is instead subject to gift tax. Only to the extent that the recipient assumes deductible charges or a consideration can real estate transfer tax arise to that extent. For a purchase, the exemption applies only to spouses and civil partners (No. 4) and to relatives in the direct line including stepchildren (No. 6). Siblings are not exempt for a purchase.

Is advice worthwhile alongside the notary?

For complex family constellations, often yes. The notary notarises neutrally and advises both sides impartially. Anyone planning a tax-optimised arrangement, protective clauses or a compulsory share strategy benefits from additional tax or legal advice.

How do reclaim clauses affect the cost?

Reclaim clauses are notarised together with the gift agreement. Whether and to what extent the transaction value and thereby the fee increase depends on the drafting (Section 97, Section 109 GNotKG). Their civil-law effect, for instance on the insolvency or serious misconduct of the recipient, can make such a clause very sensible.

What does a later cancellation of the gift cost?

A cancellation again requires a notarisation and a change in the land register. The costs are again based on the GNotKG and the transaction value then relevant. There is no cost-free reversal.

Can I deduct the costs against tax?

For a purely private gift, notary and land registry costs are generally not deductible as income-related expenses or special expenses. For rented properties, treatment as acquisition-related costs may come into consideration. This is case-dependent and to be clarified with tax advice.

Further detailed answers

• Transferring a house: main guide (step by step with checklist)
• Transferring a house: paying off siblings (several children and equalisation payments)
• Transferring a house with a lifelong right of residence (reservations and effect)
• Transferring a house: the 10-year period and care (social welfare claw-back and deadlines)
• Transferring a house to one child and the compulsory share (understanding the supplementary compulsory share)
• Will at the notary: costs and procedure

Florian Enders explains the cost calculation for a house transfer to a family using a GNotKG overview and a worked example

Your next steps

• Inheritance tax calculator (quick calculation of the tax burden for your asset transfer)
• Succession checklist (structured advance plan with cost items)
• Book a first meeting (individual cost calculation for your family)

Legal bases

• GNotKG (Courts and Notarial Costs Act)
• Section 34 GNotKG (value-based fees)
• Section 46 GNotKG (fair market value)
• Section 97 GNotKG (contracts and declarations)
• Section 109 GNotKG (same subject of notarisation)
• Section 3 GrEStG (general exceptions from taxation)
• Section 10 ErbStG (taxable acquisition)
• Section 14 ErbStG (consideration of prior acquisitions)
• Section 16 ErbStG (exemptions)
• Section 19 ErbStG (tax rates)
• Section 30 ErbStG (notification of the acquisition)
• Section 311b BGB (contracts over real property)
• Federal Chamber of Notaries notary cost calculator