Guides4 min read

Incidental costs when selling a property

Many owners underestimate what selling a property costs. Not the sale price — but the incidental costs that come off the proceeds. Here is the complete overview.

incidental costs property salecosts of selling a housenotary costs real estate transfer tax

What costs do I have as a seller when selling a property?

As a seller you typically bear the energy certificate, cancellation of land charges, possibly an early repayment penalty on an ongoing loan, the proportionate agent commission and possibly speculation tax. Notary costs and real estate transfer tax, by contrast, are paid by the buyer. Our initial assessment is free – a commission is only due in the event of success.

All costs for the seller at a glance

Type of costWho pays?Amount
Agent commissionBuyer + seller3.57% each (incl. VAT)
Notary feesBuyer1.0–1.5% of the purchase price
Real estate transfer taxBuyer5.5% in Saxony
Land register entryBuyer0.3–0.5%
Removal of land chargeSeller€200–500
Early repayment penaltySellerVariable
Energy certificateSeller€80–500
Valuation report (optional)Seller€1,500–3,000

The seller usually bears: the agent commission, removal of the land charge (Grundschuld), where applicable the early repayment penalty, and the energy certificate. The buyer pays everything else.

Notary fees: who pays what?

The notary certifies the purchase contract. The fees are based on the purchase price and are set by law (GNotKG, the German law on court and notary costs).

In practice the buyer pays the notary fees. Legally, however, both parties are liable. If the buyer does not pay, the notary can turn to the seller. This rarely happens — but it is good to know.

Example: €300,000

Certificationapprox. €1,800
Execution and supervisionapprox. €400
Land registry officeapprox. €1,200
Totalapprox. €3,400 (1.1%)

Real estate transfer tax: Saxony at 5.5%

5.5% since 2023

Since January 2023, Saxony has had a real estate transfer tax (Grunderwerbsteuer) rate of 5.5%. On a purchase price of €300,000: €16,500 in transfer tax. Paid by the buyer.

Relevant for the seller: the rate is mid-range — cheaper than in federal states with 6.5% (e.g. Brandenburg, North Rhine-Westphalia), but higher than in Bavaria (3.5%).

Agent commission in Saxony

In Saxony, this split is customary for residential properties:

Seller

3.57%

incl. VAT

Buyer

3.57%

incl. VAT

Example €300,000

€10,710

per party

On a purchase price of €300,000: €10,710 for the seller and €10,710 for the buyer. Shifting the entire commission onto the buyer is not possible for residential properties. Different rules apply to commercial properties.

A detail from my practice: some sellers count the commission as “money lost”. That is a miscalculation. Agent-supported sales achieve, on average, 5–10% higher prices in Dresden than private sales. On €300,000 that is €15,000–30,000 more — after deducting €10,710 in commission, there is often a clear net gain.

Speculation tax: when does it apply?

Potentially the largest cost factor — and the one most often overlooked.

Tax-free if:

  • Holding period over 10 years (for an investment property), or
  • Owner-occupation in the year of sale + the 2 preceding calendar years

Taxable if:

  • Holding period under 10 years AND no continuous owner-occupation
  • Tax rate: your personal income tax rate (up to 42%+)

Worked example

Purchase 2020€200,000
Sale 2026€280,000
Gain (less incidental costs)€80,000
Tax rate42%
Speculation taxapprox. €33,000

That is often more than all the other selling costs combined.

Early repayment penalty

If you have a current loan and sell before the end of the fixed-interest period, the bank charges an early repayment penalty (Vorfälligkeitsentschädigung). The amount depends on: the remaining debt, the remaining term of the fixed-interest period and the current interest rate level.

Rule of thumb: the lower the loan interest rate and the longer the remaining term, the higher the penalty. For a loan of €200,000 at 1.5% interest with 5 years remaining, the penalty can amount to €10,000–15,000.

Exceptions:

After 10 years of loan term

Special right of termination without penalty (Section 489 BGB).

At the end of the fixed-interest period

No penalty.

In the event of death

The bank loan can be terminated with 6 months' notice.

My advice: review your loan documents BEFORE starting the sale. The early repayment penalty can significantly reduce the net proceeds.

Other costs

Energy certificate

Mandatory for every sale. Consumption certificate from €80 (online), demand certificate €300–500. For buildings from before 1977 with fewer than 5 residential units, the demand certificate is mandatory.

Removal of the land charge

If a land charge (Grundschuld) is entered in the land register, it must be removed on sale. Cost: €200–500 (notary + land registry office).

Appraisal

Optional. Cost €1,500–3,000. Sensible for inherited properties, divorce cases, or when the market value is disputed.

Worked example: a Dresden flat

Sale of a 3-room flat in Striesen for €280,000:

Striesen — 3-room flat

Sale proceeds€280,000
Agent commission (3.57%)−€9,996
Removal of land charge−€350
Energy certificate−€150
Early repayment penalty−€8,000
Speculation tax€0 (> 10 years)
Net proceeds€266,502

Without speculation tax, over 95% of the sale price remains. With speculation tax (for a shorter holding period), the net proceeds can fall by a further €20,000–35,000.

Tax note: Non-binding guidance, without warranty – not a substitute for tax advice.

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Frequently asked questions

What does your service cost me as an owner?
For you as an owner, our initial assessment and advice are completely free and non-binding. A commission is only due in the event of success — that is, only when your property is actually sold. You take no financial risk.
What costs will I face when selling a property?
As a seller you usually bear: possibly the agent commission (a split with the buyer is customary), the costs of the energy certificate, the cancellation of land charges, possibly an early repayment penalty on an ongoing loan and possibly speculation tax. The notary costs and the real estate transfer tax are usually borne by the buyer. We give you a transparent overview of all expected costs in advance.
What costs does the seller bear?
Agent commission (3.57%), cancellation of the land charge (200-500 euros), possibly an early repayment penalty, energy certificate. Notary and real estate transfer tax are paid by the buyer.
How high is the real estate transfer tax in Saxony?
5.5% of the purchase price (since 2023). Paid by the buyer.
Can I deduct the sale costs for tax purposes?
For rented properties: yes, as income-related expenses. For owner-occupied properties: no. The agent commission and notary costs are not deductible for owner-occupation.
What happens if I still have a loan?
The loan is redeemed from the sale proceeds. If the proceeds are not enough, a residual debt remains. The early repayment penalty becomes due if the fixed-interest period is still running.
Can I negotiate the agent commission?
In theory, yes. In practice, 3.57% is standard in Saxony. Some agents offer reduced rates for high-value properties.
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