A LISTED AND VALUABLE
CAPITAL INVESTMENT
PRESERVING
MAINTAIN AND
WHILE
PROFITING
Claim tax deductions for the refurbishment share
Purchasing a listed residential property is not only worthwhile because of the special charm of historic buildings. In Germany, the preser vation of architectural treasures is subsidised by tax deductions. These make it possible to effectively deduct the refurbishment costs for a residential property used by the owner or rented to a third party for tax purposes, thereby reducing taxable income.
This results in the following advantages:
Faster refinancing of investment costs
Reduction of the tax burden in the initial years
Encrease in liquidity.
This noticeably enhances the attractiveness of listed properties.
WHEN TO BUY
OWN USE
In the case of listed buildings, eligible refurbishment costs for owner-occupied residential properties can be deducted from tax at a rate of up to 9% p.a. over ten years. This means that after just 10 years, 90% of the eligible refurbishment costs are tax-deductible.
Calculation example Section 10f of the German Income Tax Act (EStG) –
Refurbishment costs covered € 300,000
| Year | Tax benefit p. a. | Tax benefit (with a sample tax rate of 30%) |
|---|---|---|
| 01 | 9 %: 27.000 € | 8.100 € |
| 02 | 9 %: 27.000 € | 8.100 € |
| 03 | 9 %: 27.000 € | 8.100 € |
| 04 | 9 %: 27.000 € | 8.100 € |
| 05 | 9 %: 27.000 € | 8.100 € |
| 06 | 9 %: 27.000 € | 8.100 € |
| 07 | 9 %: 27.000 € | 8.100 € |
| 08 | 9 %: 27.000 € | 8.100 € |
| 09 | 9 %: 27.000 € | 8.100 € |
| 10 | 9 %: 27.000 € | 8.100 € |
| TOTAL | 270,000 € | 81,000 € |
APARTMENT PURCHASE AS
CAPITAL INVESTMENT
When letting, the depreciation rates for listed residential properties are higher than for other properties: eligible refurbishment costs can be offset against tax at up to 9% p.a. over 8 years and up to 7% p.a. over the following 4 years. This means that 100% of the eligible refurbishment costs are tax-deductible after just 12 years.
Our service for you as an investor:
- All-round carefree package
- Optimal financing
- Convenient administration
- Simple set-up with Roomhero: buwog.roomhero.de
You can find more information on the subject of capital investment here:
Calculation example for monument depreciation Section 7i of the German Income Tax Act (EStG) – subsidised refurbishment costs € 300,000
| Year | Tax benefit p. a. | Tax benefit (with a sample tax rate of 30%) |
|---|---|---|
| 01 | 9 %: 27.000 € | 8.100 € |
| 02 | 9 %: 27.000 € | 8.100 € |
| 03 | 9 %: 27.000 € | 8.100 € |
| 04 | 9 %: 27.000 € | 8.100 € |
| 05 | 9 %: 27.000 € | 8.100 € |
| 06 | 9 %: 27.000 € | 8.100 € |
| 07 | 9 %: 27.000 € | 8.100 € |
| 08 | 9 %: 27.000 € | 8.100 € |
| 09 | 7 %: 21.000 € | 6.300 € |
| 10 | 7 %: 21.000 € | 6.300 € |
| 11 | 7 %: 21.000 € | 6.300 € |
| 12 | 7 %: 21.000 € | 6.300 € |
| TOTAL | 300,000 € | 90,000 € |
Your tax advisor can answer all your questions about your depreciation options and your personal tax advantages. Talk to him and we will be happy to show you the right properties for you.
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