Buying from a developer and buying a finished home look alike on paper, but the transfer-tax base, the payment schedule and the energy-law exposure differ. A practical decision guide.
Buying new from a developer (a Bauträger) and buying a resale home in Germany look similar on the surface: a notary, the land register, financing. Underneath, the costs, the protections and the exposure to energy rules differ. This is a decision guide; our separate resale checklist covers the paperwork for an existing home.
What you are actually choosing
A new build is usually bought from a developer who builds and sells in one package, often before the building is finished. A resale is a finished home with a history: a tenant or an owner-occupier, a reserve fund if it is a flat, and the age of the building to price in. The first puts construction risk on you until handover; the second puts condition risk on you from day one.
Purchase costs: where they differ
- Grunderwerbsteuer (real estate transfer tax) is set by each federal state, in a range of roughly 3.5% to 6.5%. It is a major line item, so check the current rate for the state you are buying in.
- On a new build bought as one package from a developer, land and building together, the tax authorities generally take the whole price as the tax base, not only the land. Where land is bought separately and the building contract is genuinely independent, the tax may apply to the land only. How the contracts are structured matters, so have it reviewed before you sign.
- The sale of a property is generally exempt from VAT in Germany, including new buildings sold before first occupancy, so the quoted price normally carries no VAT for a private buyer. Separate service contracts are a different matter.
- Broker commission: since 23 December 2020, for flats and single-family homes bought by a private individual, the buyer may not be charged more than half of the broker fee when the seller instructed the broker, and pays only after the seller has proved payment of their share. This matters mainly on resale and on developer sales run through brokers. Commission levels themselves remain negotiable.
Paying a developer: what protects you
Under the Makler- und Bauträgerverordnung (MaBV), a developer may take instalments only according to construction progress, grouped into at most seven payment stages, unless it instead provides a bank guarantee under section 7 MaBV covering refund claims. In practice: never pay ahead of the schedule in the notarised contract, and ask the notary to confirm that the priority notice (Vormerkung) is registered before the first instalment. The exact percentage per stage is set in the regulation, so check your contract against it.
A resale has no such schedule: you pay on completion, once the conditions in the notarised contract are met.
Energy rules after the 2026 reform
Germany reformed its heating law in summer 2026. It is reported as adopted by the Bundestag and Bundesrat on 10 July and in force since 29 July 2026, under the new name Gebäudemodernisierungsgesetz (GModG). Reported key points: the blanket 65% renewable-heat requirement for heating replacements was dropped; a working gas or oil heating system in an existing building may stay; newly installed fossil heating must follow a rising biofuel share from 1 January 2029; and new buildings move to a zero-emission standard from 2030 for most building types.
For a buyer, an older home with a working boiler is less exposed to a forced replacement than under the previous rules, but fuel and carbon-cost exposure over time is still real, while a new build starts with a modern system. On any resale, check the energy certificate and the age of the heating. Details are still being implemented, so confirm them with an energy adviser.
Subsidies
The state development bank KfW runs the Klimafreundlicher Neubau programmes (297 and 298) for newly built, climate-friendly homes and for their first purchase. The funding guideline in force since 15 December 2025 runs to the end of 2030, and the Effizienzhaus 55 standard has been reported as eligible only until 31 December 2026. Eligibility, rates and conditions change, so ask a financing adviser, and do not assume that a resale qualifies.
Where each option tends to fit
A new build tends to suit you if:
- you want a modern energy standard and predictable running costs
- you can wait for completion and carry the payments in stages
- you can have a lawyer or notary check the contract and payment schedule before signing
A resale tends to suit you if:
- you want to see exactly what you are buying, today
- you want to move in or let it out soon
- you are comfortable pricing in renovation and heating replacement
FAQ
Is the Grunderwerbsteuer the same on new and resale homes? The rate is set by the state and is the same, but on a new build bought as a package the base can include the building, so the amount can differ. Who pays the broker? For flats and single-family homes bought by a private individual, the buyer's share is capped at half of the fee when the seller commissioned the broker. Can I pay a developer in advance? Only according to the construction-progress schedule, or against a bank guarantee under the MaBV. Does the 2026 heating reform make old homes risk-free? No. It removed the blanket 65% rule, but fuel costs and the rules for new fossil heating remain, and details are still being implemented.
How we help
We help you compare real listings, ask the right questions of developers and sellers, and connect you with a notary, lawyer and tax adviser in Germany. This article is general information, not legal, tax, financing or investment advice. Rules, rates and subsidies change, so verify current figures with the relevant authority or your advisers before you commit.