LfA Bavaria Development Bank — housing funding with a tax advantage
LfA Bavaria housing funding and modernisation programme — combinable with KfW 261 and listed-building depreciation §7i. Plus: at 3.5%, the lowest transfer tax of any federal state.
LfA programmes at a glance
LfA housing funding Bavaria
Funding for the construction and acquisition of rental flats at controlled rents. Low-interest loans — particularly relevant for new QNG builds in the Munich area and in Nuremberg.
LfA modernisation programme
Funding for energy modernisation and age-appropriate conversion of rental flats. Combinable with KfW 261 — for existing properties in Munich, Augsburg and Erlangen.
LfA home ownership Bavaria
Low-interest loans for acquiring owner-occupied property — income-dependent. Particularly relevant for families in Munich and the surrounding area.
Bavaria specifics: the lowest transfer tax nationwide
3.5% transfer tax — 3 percentage points cheaper than NRW. On a purchase price of €400,000 you save exactly €12,000 in transfer tax alone compared with NRW (6.5%). Together with notary (approx. 1.5%), ancillary costs of only approx. 6–7% arise — the lowest nationwide.
| Federal state | Transfer tax | Ancillary costs approx. |
|---|---|---|
| Bavaria | 3.5% | 6–7% |
| Baden-Württemberg | 5.0% | 8–10% |
| Berlin | 6.0% | 9–11% |
| NRW | 6.5% | 9–12% |
Munich: high prices, a stable market. Munich has the highest property prices in Germany — but also the most stable rental market and the lowest vacancies. Listed properties in Schwabing, Haidhausen and Bogenhausen have refurbishment shares of 40–65%.
Application process LfA Bavaria
- Funding check: align the LfA programme + KfW + bank loan
- Application through the financing house bank — not directly with the LfA
- Factor the Bavarian ancillary-cost advantage (3.5% transfer tax) into the financing plan
- Listed-building depreciation: structure the purchase-price / refurbishment split correctly
Frequently asked questions
What does the LfA Bavaria fund?
Why is Bavaria often cheaper for investors than expected?
Can I combine LfA and KfW?
Funding in other federal states
L-Bank Baden-Württemberg — housing funding
State funding.
View page → Federal stateIBB Investment Bank Berlin — housing funding
State funding.
View page → Federal stateNorthern Germany funding: IFB Hamburg · NBank · ILB Brandenburg
State funding.
View page → Federal stateWIBank Hesse — housing funding
State funding.
View page → Federal stateNRW.BANK — housing funding NRW
State funding.
View page → Federal stateRLP & Saarland funding: ISB Rhineland-Palatinate · SIKB Saarland
State funding.
View page → Federal stateSAB · IB Saxony-Anhalt · TAB
State funding.
View page →Check the funding for your project
I check state funding, the KfW combination and the right bank for your property — free, non-binding, in German and Russian.