The ten-percent deduction is intended to reflect for tax purposes the limited availability of a rented property compared to a vacant or owner-occupied property.
A prerequisite is that the property is actually rented for residential purposes and not commercially; this tax relief does not apply to commercial properties.
Regardless of the deduction, the heir remains free to additionally provide proof of a lower actual market value via an appraisal report, if this is lower than the standardized value determined.
The actual use as of the valuation date is decisive: a residential property permanently rented to third parties benefits from the deduction, while owner-occupied, vacant, or commercially rented properties remain excluded from it.
The ten-percent deduction is applied to the already determined property tax value before the personal tax-free allowances are deducted – it therefore has a direct reducing effect on the assessment basis.
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