Depreciation calculator — calculate tax savings

Non-binding orientation aid and not tax advice

A remaining useful life appraisal report can significantly increase your annual depreciation — and thereby permanently reduce your tax burden as a real estate investor. Calculate here how much you can additionally save compared to the statutory depreciation.

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)

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

Year of construction (economic) 1985 (41 yrs) In the case of full refurbishments, the economic year of construction may differ from the actual one.

19002025

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. The higher the rate, the greater the savings from depreciation.

14 % 45 %

Remaining useful life (appraisal report)

Remaining useful life determined by appraisal 28 years The shorter the remaining useful life, the higher your depreciation rate. A valuer determines the exact figure.

10 yrs50 yrs

Refurbishment
needs10–20 yrs Period building20–30 yrs Existing stock30–40 yrs Modernised40–47 yrs new build47–50 yrs

appraisal costs —

Results

Building value (depreciation base)

—

—

Tax savings — statutory depreciation (2% p.a.)

—

Tax savings — with appraisal report

EUR / year

—

—

over 10 years

—

—

Optimise your taxes now

Statutory With appraisal report

Depreciation rate — —

Building value — —

Annual depreciation — —

Tax savings / year — —

Tax savings over 10 yrs. — —

Additional tax savings possible through an appraisal report over 10 years —

Purchase price allocation

Cumulative tax savings — 30-year progression

Depreciation schedule

Year	Statutory depreciation	Statutory book value	Depreciation per appraisal report	Book value per appraisal report	Savings
Enter your details …

Have your precise value determined through an appraisal report A remaining useful life appraisal report pursuant to Section 7 (4) sentence 2 EStG (German Income Tax Act) can substantiate the actual remaining useful life of your property vis-à-vis the tax office, thereby securing you a higher depreciation rate than the statutory 2–3% per annum.

Frequently asked questions about the depreciation calculation

What is depreciation — and why is it worthwhile for real estate investors?

The depreciation for wear and tear (AfA) is a tax benefit: the tax office recognises that buildings lose value over time and allows you to deduct this loss in value annually as income-related expenses. Pursuant to Section 7 (4) EStG (German Income Tax Act) you can, as a flat rate, claim 2% of the building value per year for tax purposes. This reduces your taxable income — and thus your tax burden — permanently over the entire depreciation period.

Why can I depreciate more than the statutory 2% with an appraisal report?

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 standard 50 years. An expert opinion provides exactly this proof — and the tax office must accept it (Federal Fiscal Court, ruling of 28.07,2021). The shorter the remaining useful life determined by the appraisal, the the higher the individual depreciation rate: for a remaining useful life of 25 years, for example, 4% instead of 2% per annum.

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 portion depends heavily on the location: in large cities often 40–60%, in rural areas typically 10–20%. Based on this, our calculator automatically determines your personal depreciation basis.

What does a remaining useful life appraisal report cost — and when does it pay for itself?

Depending on the property value, the appraisal report costs typically range between €500 and €3,000. Decisive factor: the costs themselves are tax-deductible as income-related expenses. As a rule of thumb — it's worthwhile if the additional annual savings compared to the statutory depreciation exceed the appraisal costs within 2–4 years. Our calculator shows you the payback period directly in the result.

For which properties is an appraisal report particularly suitable?

An appraisal report is particularly worthwhile for:

Buildings with year of construction before 1990
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 new builds (year of construction after 2000) and low purchase prices, the benefit is often minor — an appraisal report is less worthwhile in such cases.

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, you can apply the higher depreciation (AfA) rate for 28 years — after which the building value is fully depreciated for tax purposes. The appraisal report is submitted once to the tax office and applies to all subsequent years.

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 into account individual tax particularities. All information provided without guarantee. For reliable tax optimization, we recommend consulting a tax advisor as well as commissioning an expert opinion pursuant to Section 7 (4) Sentence 2 of the German Income Tax Act (EStG) from a publicly appointed valuer.

Request an appraisal report now

Inheritance & Gifting 1 min read July 2026

What needs to be considered when valuing a property encumbered with a land charge (Grundschuld) in the event of inheritance?

For inheritance tax purposes, the full, unencumbered market value of the property is first determined. The remaining outstanding debt can then be deducted as an estate liability, provided it actually originates from the deceased.

The registered land charge itself does not automatically reduce the value of the property, as it merely serves as security in rem for a loan, and it is the actual outstanding balance that is decisive.

Heirs should therefore always ascertain the current loan balance from the financing bank in order to correctly quantify the deductible estate liability.

If the heirs take over the existing loan, the land charge (Grundschuld) generally remains in place and now secures the continued loan relationship of the new owners.

A legal distinction must be made between the land charge (Grundschuld), which is registered abstractly and independently of the existence of a specific claim, and the mortgage (Hypothek), which is always tied to a specific loan claim.

Only the actual outstanding loan balance as of the valuation date reduces the inheritance tax assessment basis as an estate liability – a land charge that has already been repaid but is still registered no longer has any tax effect.

Legal notice

Please note: the content of this article is provided for general information only and does not constitute legal, tax, financial or investment advice. It is not a substitute for individual advice from a licensed lawyer, tax adviser or financial adviser. Despite careful research, we accept no liability for the accuracy, completeness or currency of the information provided. For specific legal or tax questions, please consult a qualified professional adviser.

Tags

encumbrance inheritance case land charge property valuation property appraiser Munich estate liability market value

Tobias Streckel Real Estate Valuer Diplom-Betriebswirt (FH) in Real Estate Economics
Master of Laws (Real Estate)

+49 155 6000 5553 ts@bewerter-immobilien.de Contact (vCard) LinkedIn

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