GuideCosts

Compulsory auction: what differs by federal state?

By Pascal Szorath··4 min read·

The auction procedure is identical nationwide – the one major difference is the real estate transfer tax (3.5% to 6.5%). Here are all 16 rates and what else varies.

Does it matter in which federal state you buy at auction? For the procedure, barely – for the costs, yes. The reason: the auction procedure is governed by the ZVG as federal law (identical nationwide), whereas the most important incidental cost item – the real estate transfer tax – is set by each state itself.

The procedure is identical nationwide

Because the Compulsory Auction Act (ZVG) is federal law, these rules apply identically across all 16 states:

  • Security deposit = 10% of the market value, no cash (§§ 68, 69 ZVG)
  • Bidding period at least 30 minutes (§ 73 ZVG) – see the course of the hearing
  • Value thresholds 5/10 (ex officio) and 7/10 (on the creditor's application) at the first hearing (§§ 85a, 74a ZVG)
  • Bidding authorisation for third parties must be publicly certified (§ 71 ZVG)
  • The award = immediate transfer of ownership, no notary/agent fees (§§ 89, 90 ZVG)
  • Interest on the cash bid from the award onward (§ 49 ZVG) – see After the award

So there is no "state variant" of bidding – a hearing in München (Munich) follows the same sections as one in Hamburg.

What does not depend on the federal state, but on the individual property, is the risk: appraisal, occupancy, rights and data gaps are assessed by ZVG Melder via risk classes. For risk assessment, this classification is often more important than the question of whether the hearing takes place in Bayern (Bavaria) or Nordrhein-Westfalen.

The big difference: real estate transfer tax

Since the federalism reform (2006), each state may set its own tax rate (Art. 105 para. 2a GG; the nationwide base rate of 3.5% under § 11 GrEStG applies only in the absence of a state's own determination). The range currently spans 3.5% to 6.5%:

  • 3.5% — Bayern
  • 5.0% — Baden-Württemberg, Niedersachsen, Rheinland-Pfalz, Sachsen-Anhalt, Thüringen
  • 5.5% — Bremen, Hamburg, Sachsen
  • 6.0% — Berlin, Hessen, Mecklenburg-Vorpommern
  • 6.5% — Brandenburg, Nordrhein-Westfalen, Saarland, Schleswig-Holstein

As of: June 2026. Most recent changes: Bremen 5.0 → 5.5% (01/07/2025), Thüringen 6.5 → 5.0% (01/01/2024), Sachsen and Hamburg each to 5.5% (01/01/2023). Rates can change – when in doubt, check with the tax office.

Important in compulsory auctions: the assessment basis is not the market value, but the highest bid including the rights that remain in place (§ 9 para. 1 no. 4 GrEStG). It is precisely this rate that our cost cockpit factors in per federal state.

What else varies by state or court

  • Recipient account and deadline for the security deposit: the competent court treasury or state justice treasury and the lead time differ by court. The binding source is always the official notice (notice of hearing).
  • Local hearing and payment practice may differ slightly.

By contrast, the court fees for the award (GKG) and the land register fees (GNotKG) are uniform across the federation – these depend only on value, not on the federal state.

In a nutshell

  1. Procedure: identical everywhere (federal law).
  2. Real estate transfer tax: 3.5%–6.5%, by federal state – the biggest regional cost factor.
  3. Security deposit account/deadline: by court – see the official notice.

Note: General guidance, not tax or legal advice. Tax rates change; what matters is the current state rate or the official notice.

Sources