{"id":2774,"date":"2025-09-24T15:30:06","date_gmt":"2025-09-24T13:30:06","guid":{"rendered":"https:\/\/www.buwog-dahmeglanz.de\/depreciaton\/"},"modified":"2025-11-11T13:11:57","modified_gmt":"2025-11-11T12:11:57","slug":"depreciaton","status":"publish","type":"page","link":"https:\/\/www.buwog-dahmeglanz.de\/en\/depreciaton\/","title":{"rendered":"Depreciaton"},"content":{"rendered":"\t\t
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SECURE MAXIMUM BENEFITS <\/i><\/b>FOR NEW-BUILD RENTAL PROPERTY NOW<\/h1>\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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DECLINING BALANCE DEPRECIATION OF FIVE PERCENT<\/h3>\t\t\t\t<\/div>\n\t\t\t\t
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The purchase of residential property as a capital investment is a sensible investment that can offer tax benefits. The tax authorities now allow buyers who rent out their home the option of declining balance depreciation. <\/p>

A depreciation allowance of five percent can now be applied to the depreciable investment expenses incurred (or to the residual value in subsequent years).<\/p>

Have a look at the sample calculation of how you can benefit from the declining balance depreciation:<\/p>

Cumulative depreciation by comparison<\/b>
(Example: \u20ac 500,000 total purchase price, \u20ac 400,000 thereof depreciable building
and ancillary acquisition costs, observation period: 10 years from acquisition)<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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In the example, choosing declining balance depreciation over the first ten years results in a depreciation amount that is \u20ac 40,500 higher than linear depreciation (linear depreciation \u20ac 120,000, declining balance depreciation \u20ac 160,500).<\/figcaption>\n\t\t\t\t\t\t\t\t\t\t<\/figure>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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With \u20ac 400,000 in depreciable investment costs, the investor can write off \u20ac 20,000 (five percent of \u20ac 400,000) for tax purposes in the first year, in the second year, \u20ac 19,000 is then depreciable (\u20ac 400,000 minus the \u20ac 20,000 from the first year = \u20ac 380,000 residual value; 5% of this). Within five years of completion\/acquisition of the property, the investor can thus claim around \u20ac 90,500 for tax purposes. <\/p>

This results in various advantages for the buyer as a lessor:<\/b><\/p>