Transfer tax exemptions for family, spouses and heirs

The exemptions that matter for families

Section 3 lists the cases below. The wording is the law’s; the English is a gloss.

The Hessian finance ministry gives plain examples when explaining why its subsidy cannot apply: buying from parents, children, stepchildren, adopted children, grandparents, grandchildren, spouses or registered partners involves no tax.

Who is left out

The direct line does not include siblings. The text in § 3 Nr. 6 speaks of persons “in gerader Linie verwandt” (related in the direct line); a brother or sister is not in that line, so a sale between siblings is taxed in the normal way.

Unmarried couples are not exempt either. In a reply published on 6 May 2026 (Drucksache 21/5776), the federal government confirmed that § 3 Nr. 5 does not apply to cohabiting couples who are not married or registered partners. Its reasoning was that marriage and registered partnership create a set of legal rights and duties that a non-marital cohabitation does not. It added that the coalition agreement contains no statement on transfer tax and that it had no cost estimates for extending the exemption. If one partner takes over the other’s share of a shared home after a separation, tax is due on that share.

The €2,500 threshold and the “all or nothing” effect

The exemption in Nr. 1 applies where the base “does not exceed” €2,500. Berlin’s finance department stresses the other side: above that amount, the tax is calculated on the whole base, not only on the excess. A purchase worth €2,501 is taxed as a whole. For a home purchase this threshold is almost never relevant; it matters for small strips of land and similar acquisitions.

Gifts with a condition

A gift of a property is exempt under Nr. 2, but when it comes with a condition (an obligation the recipient takes on), the exemption is limited. The text says such a gift is taxable only to the extent that the condition would be deductible for gift tax purposes. Whether a particular obligation counts is a question for the tax office. Whether inheritance or gift tax is due on the transfer is a separate question; see inheritance tax on property and gift tax on property.

What still has to happen when no tax is due

An exemption does not remove the paperwork. A notary is still needed for a property transfer, and the notary reports the transaction. Under § 19 the parties themselves must also report certain events to the tax office within one month of learning of them, even if the transfer is exempt. The tax office issues the clearance certificate required for the land register entry also where an exemption applies (§ 22), and the Bavarian tax office adds that the land registry may waive the certificate for transfers that are clearly exempt. See the guide on the tax clearance certificate.

Couples who buy together

Spouses or registered partners who buy as co-owners are, according to the North Rhine-Westphalia tax offices, generally not treated as joint debtors: each owes the tax on his or her own share and receives a separate notice with a separate tax number. If you pay both notices in one transfer, quote both tax numbers, otherwise the payment is hard to match and the clearance certificate can be delayed.

Which professional to consult

A notary drafts and certifies the transfer (see the notary profession page). For a borderline case, such as a gift with conditions or a partner taking over a share, ask the competent tax office or a tax adviser (Steuerberater) before you sign. Payotte does not rank notaries.