Depreciation calculator — work out your tax advantage

Non-binding orientation aid and not tax advice

A remaining useful life report can increase your annual depreciation (AfA) and so lower your tax burden in the following years. Calculate here how a shorter remaining useful life can compare with statutory depreciation. Total depreciation stays the same; it is brought forward.

All information provided without guarantee. This calculator serves as non-binding orientation and does not replace tax advice.

Purchase & incidental costs

purchase price

EUR

50,000EUR 20 million

Federal state (real estate transfer tax) Rates pursuant to § 11 Abs. 1 GrEStG in conjunction with Art. 105 Abs. 2a S. 2 GG (as of 2026).

Notary & land register 2,0 % Notary + land register entry — typically 1.5–2.5% of the purchase price

0 %5 %

Broker commission 3,57 % Usually 3.57% per party (incl. VAT) — in some cases 0%

0 %8 %

Handover date (transfer of possession, benefits and burdens) 01,2024

Jan 2000

Property

Property (optional – appears only in your PDF)

Property type —

Owner-occupied
flat Multi-
family house One-/two-
family house Residential and
commercial
building

Living/usable area (optional)

m²

Year of construction (completion) 1985 (41 yrs) The statutory depreciation rate depends on the year of completion (Section 7 (4) sentence 1 EStG): before 1925 → 2.5 % · 1925–2022 → 2 % · from 2023 → 3 %. A notional "economic year of construction" does not change the statutory rate. The 3 % from 2023 applies only to residential buildings; non-residential buildings held as business assets (building application after 31 March 1985) get 3 % regardless of the year of construction (Section 7 (4) sentence 1 no. 1 EStG). The calculator is designed for let residential property held as private assets.

19002026

Land share 20 % Only the building share (= 100% minus land share) is tax-deductible via depreciation.

0 %80 %

Rural5–15 % Suburb15–25 % City25–40 % City centre40–60 % Prime location60–80 %

Tax & Appraisal

Income tax rate 42 % 42% top rate Your personal marginal tax rate (Section 32a EStG), excluding solidarity surcharge and church tax (these may fall as well). The higher the rate, the greater the tax relief from depreciation.

14 % 45 %

Remaining useful life (appraisal report)

Remaining useful life determined by appraisal 28 years The shorter the remaining useful life (RUL), the higher your depreciation rate (100 % ÷ RUL). Only an RUL below the statutory standard useful life (50 / 40 / 33 years) leads to higher depreciation (Section 7 (4) sentence 2 EStG); for an earlier purchase, the statutory useful life remaining since acquisition counts (Section 11c (1) sentence 2 no. 3 EStDV). Modernisation extends the RUL (Section 4 (3) in conjunction with Annex 2 ImmoWertV). A valuer determines the exact value.

10 yrs49 yrs.

Refurbishment
needs10–20 yrs Period building20–30 yrs Existing stock30–40 yrs Modernised40–49 yrs.

appraisal costs —

Results

Building value (depreciation base)

—

Tax relief — statutory depreciation (2.00 % p.a.)

—

Tax relief — with appraisal report (model calculation)

EUR / year

—

in the first 10 years

—

Free preliminary check

Statutory With appraisal report

Depreciation rate — —

Depreciation base — —

Annual depreciation — —

Tax relief / year — —

Tax relief 10 yrs — —

Additional tax relief in the first 10 years (model calculation) —

Purchase price allocation

Cumulative tax relief up to the end of the statutory useful life – the head start from the appraisal report evens out afterwards

Depreciation schedule

Year	Statutory depreciation	Statutory book value	AfA appraisal report	Book value per appraisal report	Cumulative head start
Enter your details …

Have your precise value determined through an appraisal report A remaining useful life report under Section 7 (4) sentence 2 EStG can prove the actual remaining useful life of your property to the tax office and so justify higher depreciation than the statutory 2 to 3 % p.a. (Section 7 (4) sentence 2 EStG). Whether it is accepted is decided by the tax office case by case.

Frequently asked questions about the depreciation calculation

What is AfA (depreciation)?

The AfA (depreciation for wear and tear) spreads the acquisition or construction costs of the building over its useful life; the annual amount reduces your rental income as an income-related expense (Section 7 (4), Section 9 (1) sentence 3 no. 7 EStG). Under Section 7 (4) sentence 1 EStG, straight-line depreciation is 2% of the building value per year (completion 1925–2022), 2.5 % for completion before 1925 (40 years) and 3 % for completion from 2023 (33 years). This reduces your taxable income over the entire depreciation period.

Why can I depreciate more with an appraisal report than the statutory depreciation (AfA) rate?

Section 7 (4) sentence 2 EStG (German Income Tax Act) permits a higher depreciation rate if the actual remaining useful life of your building is demonstrably shorter than the statutory standard useful life (50, 40 or 33 years). An expert appraisal report can provide this proof. You may use any method of demonstration suitable for the individual case; a building fabric survey is not required, and the tax office and fiscal court assess the report (Federal Fiscal Court, 28 July 2021 – IX R 25/19). A report based on the ImmoWertV can also suffice if it is substantiated for the specific property (Federal Fiscal Court, 23 January 2024 – IX R 14/23; Fiscal Court of Münster, 2 April 2025 – 14 K 654/23 E); a mere reference to the ImmoWertV model values is not enough. The tax authorities revoked the stricter requirements of the Federal Ministry of Finance letter of 22 February 2023 with its letter of 1 December 2025. The shorter the remaining useful life determined by the valuer, the higher the individual depreciation rate: For an RND of 25 years, for example, 4 % instead of 2 % p. a. (100 % ÷ 25 years).

What is the difference between the purchase price and the depreciation basis (building value)?

Not the entire purchase price is depreciable. The tax office distinguishes between two portions:

Building portion → depreciable (the building wears out)
Land share → not depreciable (land does not lose value)

The land share depends heavily on the location: rural areas typically 5–15 %, suburbs 15–25 %, cities 25–40 %, inner-city locations 40–60 %, prime locations up to 80 %. The allocation is based on the ratio of the market values of the land and the building (BFH v. 10.10,2000 – IX R 86/97). Our calculator automatically determines your personal depreciation base from this.

What does a remaining useful life report cost?

The cost depends on the property; after the free preliminary check you receive a binding fixed fee. For let properties, appraisal fees are usually deductible as income-related expenses (Section 9 (1) sentence 1 EStG). The calculator shows after how long the additional annual relief covers the appraisal costs you entered – a model calculation, not a promise.

For which properties is a report particularly worth considering?

The potential is typically greatest for:

Residential buildings from approx. 30 years of building age without full refurbishment
Properties with a discernible need for or backlog of refurbishment
Higher purchase prices with a large building share
A personal tax rate from approx. 35%

For newer buildings (built after 2000) and low purchase prices, the effect is often small. Buildings completed from 2023 already get the statutory rate of 3 % (33 years); if construction started from October 2023, declining-balance depreciation under Section 7 (5a) EStG may also be an option.

From what building age is a remaining useful life report worth considering?

A report only has an effect if the remaining useful life is below the statutory useful life (Section 7 (4) sentence 2 EStG). For residential buildings, the ImmoWertV assumes a model total useful life of 80 years (Annex 1 ImmoWertV); without modernisation, the remaining useful life therefore only falls below 50 years from a building age of around 30 years .

Residential buildings completed 1925–2022 (statutory 50 yrs, 2 %): from about 30 years of building age, noticeable effect usually from 35–40 years
Completed before 1925 (40 yrs, 2.5 %): almost always, except after full refurbishment
Completed from 2023 (33 ⅓ yrs, 3 %): practically never
Non-residential buildings held as business assets (33 ⅓ yrs, 3 %): office buildings (model total useful life 60 yrs) from about 27 years, retail and warehouse buildings (30–40 yrs) much earlier

Modernisation extends the remaining useful life (Section 4 (3) in conjunction with Annex 2 ImmoWertV) and pushes the threshold upwards; after a full refurbishment a report is usually not an option. The additional annual depreciation is building value × (1/RUL − 1/50): with a building share of EUR 300,000 and an RUL of 30 years, that is around EUR 4,000 more depreciation per year; with an RUL of 45 years, only around EUR 670.

How long does the increased depreciation (AfA) rate apply?

Exactly as long as the remaining useful life determined in the appraisal report lasts. If the remaining useful life according to the appraisal report is, for example, 28 years and the tax office accepts it, you can apply the higher depreciation rate for 28 years — after that the building value is fully written off for tax purposes. The remaining useful life determined by the valuer is proven to the tax office once and used as the basis for depreciation in the following years. For an earlier purchase, the residual value not yet written off is spread over the remaining useful life (Section 7 (4) sentence 2 EStG; useful life starts on acquisition, Section 11c (1) sentence 2 no. 3 EStDV). The result is a deferral or liquidity effect: total depreciation stays the same, it is just claimed earlier. If the property is sold within ten years, the additional depreciation increases the taxable capital gain because it reduces the acquisition costs (Section 23 (1) sentence 1 no. 1, (3) sentence 4 EStG).

Does this calculator replace an expert appraisal report or tax advice?

No. The calculator serves exclusively for non-binding orientation. It does not calculate a legally binding depreciation basis and does not take individual tax circumstances into account. All information without guarantee. For your tax decision we recommend advice from a tax adviser and an expert report under Section 7 (4) sentence 2 EStG by a suitably qualified valuer.

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