Parking space transfer fee

Parking Space Exemption - A parking space exemption is a monetary payment made to the municipality that allows a developer to fulfill their legal obligation to provide parking spaces on their own property. It applies when the required number of parking spaces cannot be provided on the building lot, or can only be partially provided.

Legal Basis and How It Works

In Bavaria, the obligation to provide parking spaces arises from Section 47 of the Bavarian Building Code (BayBO). According to this provision, when constructing buildings with incoming and outgoing traffic, parking spaces of sufficient number and size must be provided. The exact number depends on the type of use and size of the building and is specified in the municipality’s respective parking space ordinance.

If the builder cannot demonstrate that the required parking spaces are available on their own property-for example, because the lot is too small, the access road is inconveniently located, or historic preservation regulations prevent the construction of a parking facility-Art. 47(3) BayBO allows for a financial payment in lieu. The municipality collects the substitution fees for a specific purpose and uses them to construct public parking facilities, improve public transportation, or implement other measures to reduce parking pressure.

The obligation to pay a substitution fee does not arise only in the case of new construction. Additional parking space requirements may also arise in the event of changes in use, renovations, or the conversion of an attic. For example, if a commercial unit is converted into residential space or additional residential units are created, the additional need for parking spaces must be demonstrated or compensated for.

The amount of the compensation is determined by the respective municipality in its parking space ordinance and varies considerably. Depending on the municipality and the location of the property, the amounts range from 5,000 to 20,000 euros per parking space, and in some cases even higher. Payment is generally stipulated as a condition in the building permit and must be made before construction begins or, at the latest, before the building is occupied.

Parking Space Regulations and Municipal Differences

Each municipality may establish its own regulations regarding the number of required parking spaces, size requirements, and the amount of the fee in its parking space regulations. These regulations sometimes differ significantly, even within the Nuremberg metropolitan region. While some municipalities provide for generous parking space ratios, others specifically reduce the requirements in locations with good public transportation connections.

Some municipalities differentiate the fee amount by zone: In the city center, where parking space is particularly scarce and expensive, higher fees apply than in outlying areas. The type of use also plays a role-different parking space ratios often apply to commercial and retail spaces than to residential buildings.

Practical Tip for Nuremberg and the Metropolitan Region

The City of Nuremberg regulates the parking space requirement in its Garage and Parking Space Ordinance. Within the city limits, the exemption fees range from approximately 7,500 to 12,000 euros per parking space, depending on the zone. Especially in densely built-up neighborhoods such as the Old Town, Gostenhof, or St. Leonhard, where it is often not possible to create parking spaces on the property, the parking space buyout is a common tool.

We recommend that builders and investors clarify the parking space issue as early as the pre-planning phase. If several parking spaces are missing, the redemption costs can quickly reach five-figure sums and significantly impact a project’s budget. Early coordination with the Building Authority of the City of Nuremberg or the respective municipality helps avoid unpleasant surprises during the permitting process.

Frequently Asked Questions

Can I freely decide whether to build parking spaces or pay a redemption fee?

No. Creating parking spaces on your own property generally takes precedence. A fee-based alternative is only considered if it can be proven that the parking spaces cannot be created, or cannot be created in full, on the building lot. The building authority reviews this as part of the building permit process and determines the number of parking spaces for which a fee must be paid.

When is the parking space fee due?

The payment obligation is stipulated as a condition in the building permit. As a rule, the fee must be paid before construction begins or, at the latest, before the final inspection of the building. Payment in installments is possible in some municipalities upon request, but is not provided for everywhere. If payment is not made, the building authority may prohibit the start of construction or refuse to grant occupancy approval.

Does the parking space requirement also apply to an attic conversion?

Yes. If the conversion of an attic creates additional residential units or usable space, this generally triggers a need for additional parking spaces. The number of parking spaces required is determined by the municipality’s parking space regulations. If the additional parking spaces cannot be provided on the property, a parking space exemption fee may be paid, and this is often the only way to make the project eligible for approval.

Can a parking space exemption fee be reclaimed?

Once paid, parking space exemption fees are generally non-refundable, even if the construction project is not carried out or the building permit expires. An exception applies only if the application for revocation is filed in a timely manner and the building permit is formally revoked before the exemption fee becomes due. We recommend clarifying this issue with the building authority during the preliminary building inquiry to ensure planning certainty.

Parking Space Redemption as a Cost Item in Investment Projects

For larger residential construction projects in the city center-such as the conversion of an office building into residential space-the parking space requirement can be substantial. For an office building with 2,000 square meters of usable floor space that is being converted into twenty residential units, ten or more parking spaces may quickly need to be demonstrated or redeemed. At a redemption rate of 10,000 euros per parking space, this alone results in 100,000 euros in additional project costs. This amount must be taken into account in the feasibility analysis prior to purchasing the existing building.

We recommend that project developers and investors in the Nuremberg metropolitan region address the parking space issue early on, in conjunction with site development and building permit planning, and compare both the construction costs of an underground garage and the buyout costs. In dense downtown locations, an underground parking garage is often more expensive than the buyout-conversely, an underground parking garage can increase the sales value of the apartments and economically outweigh the buyout costs.

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