Property transfer tax (Grunderwerbsteuer)

The highest additional cost of buying a home in Germany.
You’ll usually need to pay between 3.5% and 6.5% of the purchase price.
https://hypofriend.de/en/property-transfer-tax.fhd
Pay it within four weeks of finalizing your purchase.
- Once paid, the transfer of ownership of the property can be registered in the German land registry (Grundbuch).
- Use an online platform to simplify the taxation process:
  - https://taxfix.de/en/
  - https://expatica.germantaxes.de/

Notary and land registration

Find all mortgage options in advance.
German banks that offer mortgages include:
- Commerzbank
- Deutsche Bank
- DKB
- Postbank
- Santander
- Hypovereinsbank
Ask if they have an English-speaking staff member who can help you.
Get a mortgage agreement in principle (pre-approval) from a bank.
Downpayment: 20%
Mortgage repayments won't be more than 35% of your monthly income.
- Some banks might ask me insurance for this, just in case if I fall seriously ill or die.
- Might be required if I am the sole earner in a family or if I borrow at a high loan-to-value level.
Fixed-rate mortgages for 10 years.
After 10 years, you can then refinance the loan at whatever the market rates are at that time.

Analyze house prices and property types in the area before searching.
Buying a property that I'll need to renovate? Find out about the local building rules and regulations.
Visit a potential property at different times of the day to get an idea of things such as noise pollution and traffic levels.
- Consider taking a friend along for a second opinion.

Note

Before searching for a German property, it’s a good idea to get an informal mortgage agreement in principle (pre-approval).

If I need an independent property survey to check for any problems with the building, I should do this before signing the contract to buy the home.
The Royal Institute of Chartered Surveyors (RICS) provides a list of surveyors in Germany.
- https://www.ricsfirms.com/search/DE/?search=true&location=Germany&page=4

Reservation fee (0.5% to 1% of the property’s price).
- Property will be taken off the market.
- Reservation period: 2 or 4 weeks.
- During this time we have to finalize our mortgage.

Shop around for a notary and surveyor (if required).
- Do NOT necessarily choose the ones recommended by the estate agent.
Agree on a notary with the seller to progress the legal elements of the transaction.
The notary will draft the final purchase contract.
A 14-day cooling-off period before it can be signed.
- Then attend the notary's office in person with the seller.
- I need a translator to come to this meeting with you.
Notary will provide a priority notice to the land registry, registering an intention for the property to be transferred into my name.

The estate agent's fee.
Notary's fee.
Some weeks, the notary will set a date for me to transfer the full purchase amount to the seller.
Transfer tax bill, which must be paid within four weeks.
- After land registry transfer is complete -- some weeks after you get the keys and move in.

Cost of any damage to the structure of the property -- for example, due to fire or flooding.
For apartments I might not need this since it might be shared between all owners in the building.
Contents insurance: protection against damage to or theft of your belongings, ain't required by law.