Transfer tax in Berlin and Brandenburg: 6% and 6.5%

Why the border matters

The Basic Law gives each of the sixteen states the power to set the rate of this tax (art. 105(2a), second sentence). The federal act, the Grunderwerbsteuergesetz (GrEStG), fixes a default of 3.5% in § 11, but each state replaces it with its own law. Berlin and Brandenburg both chose a high rate, and Brandenburg’s is half a point higher.

• Berlin: 6%. The Senate Department for Finance states that the rate applies to transactions “realised” from 1 January 2014. Between 1 April 2012 and 31 December 2013 it was 5%.
• Brandenburg: 6.5%. The state’s rate law, amended on 23 June 2015, applies section 1 to transactions realised from 1 July 2015. The same law says that transactions between 1 January 2011 and 30 June 2015 follow the earlier version of the text, which this guide does not describe.

The rule that counts is the one for the state in which the plot is registered. A flat in Potsdam is taxed at 6.5%; a flat across the city limit in Berlin is taxed at 6%.

What the tax is charged on

The tax is calculated on the value of the Gegenleistung (consideration), not on the market value. For a sale, § 9 GrEStG counts the purchase price plus any other obligations the buyer takes over and any rights of use the seller keeps. The tax itself is neither added to the base nor deducted from it (§ 9(3)).

Berlin’s tax administration adds a point that surprises buyers of land: if you buy a plot and, with the seller or a party tied to the seller, sign a building contract for the house, the courts treat both as one package (einheitliches Vertragswerk). The tax is then charged on the building cost as well as on the land price. If you are in that position, raise it with your notary before signing.

Who pays

By law the contracting parties are the taxpayers (§ 13 GrEStG). In most contracts the buyer agrees to bear the tax. Berlin’s tax office explains that the notice then goes to the buyer first, but that the office can claim the tax from the seller if the buyer does not pay. Read the allocation clause in the draft contract: it decides who receives the bill, but it does not remove the seller’s exposure.

The €2,500 threshold

§ 3 GrEStG exempts an acquisition when the base does not exceed €2,500. Berlin’s FAQ stresses that this is a Freigrenze, a threshold, and not an allowance: once the consideration is above €2,500, the tax is levied on the whole amount. Transfers to a spouse or registered partner, and between persons in a direct line, are also exempt under § 3; those cases are covered in the guide on transfer tax exemptions within the family.

From signature to registration

1. Notary’s report. After the deed, the notary reports the sale to the tax office electronically within two weeks (§ 18 GrEStG), even if the transaction is exempt.
2. Tax notice. For Berlin property, Berlin’s tax administration names the Spandau tax office as centrally responsible. For other land, the office for the district where the property lies is responsible (§ 17 GrEStG). Brandenburg’s rate page does not name an office; the notary knows which one applies.
3. Payment. The tax is due one month after the notice is communicated, and the office may set a longer period (§ 15).
4. Clearance certificate. Once the tax is paid, the office sends the Unbedenklichkeitsbescheinigung (tax clearance certificate) to the notary. Under § 22 GrEStG the land registry may not register the buyer without it. The guide on the tax clearance certificate describes the document.

Which professional to consult

The notary who prepares your deed reports the sale to the tax office and is the person to ask about the allocation clause and the package-contract issue; see notary. A tax adviser can say how the tax interacts with your own situation. The by-state page lists the rate for every state.