Transfer tax in Bavaria and Baden-Württemberg

Bavaria: the federal default rate

Bavaria is the only state, among those whose rate was read for this guide, at the rate written into the federal act. Section 11 of the GrEStG sets 3.5%, and the Bavarian tax office says the tax is “regelmäßig 3,5 %” of the base. No later increase is mentioned on its page. Under Article 105(2a) of the Basic Law each state may set its own rate; Bavaria has not used that power to move away from 3.5%.

The Bavarian tax office describes the way the tax is built in an FAQ that is a handy reference for any buyer:

• Base. The consideration is everything the buyer spends to acquire the property, in most cases the price attributable to the land and buildings. Assumed debts, rights reserved by the seller (such as a right of residence) and capitalised ground rent can be added. The tax itself and the notary costs are not part of the base, and neither is furniture priced separately in the contract.
• Who owes it. The buyer and seller are jointly liable, but the tax office first claims the tax from the party who undertook to pay it in the contract, and only turns to the other if it cannot collect.
• When. The tax arises with the valid sale contract; handover, price payment and registration do not change that. It falls due one month after the tax notice is announced. Deferral comes into question only in justified exceptional cases.
• If the price is lowered. Within two years, the assessed tax is reduced on application.
• Who deals with it. The tax is assessed and collected by 18 tax offices acting as transfer-tax central offices; which one handles your file depends on the district of the property.

Baden-Württemberg: 5.0%

The Baden-Württemberg tax offices state in one line: whoever buys or otherwise acquires land in the state must pay the Grunderwerbsteuer, and “der Steuersatz beträgt 5,0 Prozent”. The page read for this guide does not give a start date for that rate, so Payotte does not state one. For anything beyond the rate, the general federal rules described in the guide on real estate transfer tax in Germany apply as they do everywhere.

Side by side

These are calculations from the stated rates. The notary and land registry fees do not depend on the state: they follow a federal fee schedule, and the purchase costs calculator applies them.

Other state-specific points in the south

Property tax. Both states use their own law for the annual Grundsteuer since 1 January 2025. The federal government’s reply of 17 December 2025 lists Baden-Württemberg and Bavaria among the five states (with Hamburg, Hesse and Lower Saxony) that used the constitutional opening to deviate from the federal model. Baden-Württemberg applies a “modified land-value model”: the value comes from the land alone, from the plot area and the standard land value (Bodenrichtwert). Bavaria applies an area-based model that does not depend on value; the statutory figure for land is 0.04 euro per square metre, and the tax office says this prevents the tax from rising automatically with property prices. The municipality’s multiplier still sets the final bill. For the national picture, see the property tax guide.

First-buyer aid. Neither state’s tax office page read for this guide mentions a relief or subsidy for first-time buyers, and no federal allowance was found. Hesse’s Hessengeld is the only confirmed state grant; see the Hessengeld guide.

Which professional to consult

The notary who prepares the sale contract reports it to the tax office and receives the clearance certificate later (see clearance certificate and the notary profession page). For questions about a specific assessment, contact the competent tax office or a tax adviser (Steuerberater). Payotte does not list or rank notaries.