Less tax, correctly depreciated
Anyone who owns a let property depreciates it: depending on the year of construction usually at 2 or 2.5 per cent of the proportionate acquisition costs of the building, corresponding to a standardised useful life of 50 or 40 years.
If the actual remaining useful life is shorter, section 7 (4) sentence 2 of the German Income Tax Act permits faster depreciation. That requires a report.
What that amounts to
With a building value of 300,000 euros and standardised depreciation over 50 years, you pay tax on 6,000 euros less each year. Where a report establishes a remaining useful life of 25 years, that figure doubles.
| Purchase price | 300,000 € |
| Purchase costs | 36,000 € |
| Total costs | 336,000 € |
| less land value (example 20 %) | 67,200 € |
| Building value (80 %) | 268,800 € |
| standardised depreciation 2 % | 5,376 € per year |
| depreciation per report 4 % | 10,752 € per year |
Straight away
- higher annual depreciation
- possible refunds for past years
- more net income without raising the rent
Over time
- higher net yield
- higher value on sale
- stronger effect during working life than in retirement
Time value
- a tax advantage today is worth more than one tomorrow
The legal position
An elaborate building fabric report is not required. As early as 1971 the Federal Fiscal Court made clear (VIII R 73/68) that absolute certainty cannot be demanded when determining the remaining useful life.
In its judgment of 28 July 2021 (IX R 25/19) the court held that the actual remaining useful life may also be established by simpler and less expensive methods.
What it costs
1,181.88 euros including 19 % VAT, within a travel radius of 50 kilometres around Hofheim.
We carry out an initial assessment beforehand. If it is positive and the report does not achieve its aim, you get your money back. Our experts are certified to DIN EN ISO/IEC 17024.
Which documents we need
About the land
- land register extract
- cadastral extract
About the building
- energy certificate
- floor plans
- construction documents
- brochures
Photographs
- front and rear elevation
- stairwell, windows, bathrooms
- walls, doors, ceilings, stairs
- radiators and electrical installation
- roof inside and out
- any visible damage
All of it conveniently via our file upload.
Important: give your details to the best of your knowledge — particularly on modernisation. If you do not have precise information, tell us rather than estimating. The documents must relate to the property being valued; images of neighbouring properties are not suitable for producing the report.
Have the amounts and the radius confirmed before going live. Tax advice remains a matter for the tax adviser.
Request an initial assessment
The more precise your details, the more reliable the assessment. Leave blank whatever you are unsure about — we will ask.
