Fee waiver when buying property: How to avoid unpleasant surprises

From July 1st, the time has come: then, under certain conditions, it will be possible to apply for exemption from registration and lien fees for the purchase of real estate. As reported, the federal government decided this as part of the housing package. The aim is to support young people and families. The land register and lien registration fee is waived for the purchase of residential property with a tax base of up to 500,000 euros. In total, up to 11,500 euros in relief can be guaranteed for home purchases, according to the Ministry of Finance. Amounts that exceed the tax base of 500,000 euros but are less than two million euros are subject to the regular fees. If the tax base exceeds two million euros, the fee exemption is waived entirely.

However, future property owners must think ahead about whether they will meet the requirements for the exemption in the long term, according to a press release from the Chamber of Notaries this week: The aim is to avoid negative surprises.

To benefit from the fee exemption, the land registry application must be submitted after June 30, 2024 and before July 1, 2026. A corresponding implementing decree to implement the new legal situation has now been published. The Chamber of Notaries gives an example to make it easier to understand: For a couple who, for example, buy a house together for one million euros, each of the partners can apply for exemption from the land registry entry fee (1.1 percent of the purchase price) for a purchase of 500,000 euros. This saves each partner 5,500 euros.

Not in the case of inheritance or gift

The acquisition of real estate by inheritance or by gift is not covered by the fee exemption, as only legal transactions for a fee are covered.

The notaries also point out that the fee exemption can be subsequently withdrawn within a five-year period, namely if the apartment is sold or passed on in another form: The Chamber of Notaries cites a couple as an example. If they have an urgent need for housing (main residence registration confirmation) and jointly purchase an apartment for a purchase price of 600,000 euros, the conditions for claiming the exemption are met. 300,000 euros per purchase, and thus the entire purchase price, are exempt from the registration fee. After two years, the marriage is divorced and the joint apartment is sold. Each partner is obliged to inform the relevant court within one month of the withdrawal of the exemption. Both are subsequently charged the registration fee.

This loss must be actively reported to the court within one month of the entry into force. If this is not done and the court determines on its own initiative that the conditions for exemption no longer apply, a fee increase can be imposed in addition to the registration fee.