Tax-optimised German investment property: why the check is the product
German real estate carries depreciation regimes for investors that ordinary residential property abroad does not — heritage-building depreciation (Denkmal-AfA, §7i), new-build special depreciation (§7b) and a shorter useful life on older buildings. What decides whether a property is worth it is the check before you sign, not the brochure.
Siegfried Perini has been in this business since 1992; AUP Finanzservice UG holds the §34c GewO licence and has traded since 2013. For some properties the developer pays AUP, for others AUP receives nothing and the prices are commission-free — either way the buyer pays no fee, and we name the conflict of interest on paid properties openly, rather than glossing over it.
What decides whether a tax-optimised German investment property is worth it?
What decides whether a property is worth it is the check before you sign, not the brochure. Every property is run through a defined check standard rather than gut feeling — purchase price, rental value, purchase-price split, tax effect, financing, cash flow and exit.
How does the leverage of Denkmal-AfA §7i and QNG new-build §7b work?
German tax law still offers investors accelerated depreciation that ordinary residential property does not. Two routes stand out, and which one fits depends on the property, your capital and your marginal tax rate — not on the tax rate alone.
- Heritage buildings (Denkmal-AfA, §7i EStG): the renovation share of the purchase price is written off at 9% per year for 8 years, then 7% per year for 4 years — 100% of the renovation cost over 12 years. It applies only to the renovation share and requires a certified monument and a let dwelling; one of the highest depreciation rates in German tax law (§7i), best suited to a high marginal rate and a long hold.
- New builds (QNG, §7b EStG): a completed new-build dwelling with a QNG (Sustainable Building Quality Seal) certificate qualifies for a special depreciation of 5% per year for 4 years on the building share, on top of the regular straight-line building AfA — a tax benefit concentrated in fewer years, with fixed-price planning security and combinable KfW subsidised loans. A comparison of both routes is set out in German at QNG vs. listed building; advice on it is available in English.
- 100% Denkmal-AfA §7i over 12 years; §7b QNG new-build special AfA; §7 (4) 2 EStG: shorter useful life allowed; §34c GewO · AUP UG since 2013 · in the business since 1992.
Both routes share the same mechanism: the depreciation deduction reduces your taxable rental income, which the German tax authority offsets against other income. The saving equals the deduction multiplied by your marginal tax rate. At a 42 % marginal rate, a €20,000 annual deduction saves roughly €8,400 in income tax that year. Whether that outweighs the higher acquisition cost of a listed or certified property is the central question answered with concrete numbers in the sample calculation.
Combining both with KfW financing adds a second lever: the fixed low rate on the KfW loan reduces the financing cost, and the interest is a deductible advertising expense (Werbungskosten) that further reduces taxable income. Together, depreciation and interest deduction are what produce the favourable monthly cash flow shown in the sample calculations.
How do remaining-useful-life appraisals bring the building AfA forward?
Under §7 (4) sentence 2 EStG, the building AfA may be based on a shorter proven useful life than the typical 50 years; a higher annual rate brings the same total forward.
A shorter useful life means a higher annual AfA rate — the depreciable total stays the same (the building share), it is only brought forward in time. The leverage is strongest where a high building share, a demonstrably shorter useful life and a high marginal tax rate come together; on new builds or owner-occupied property it usually brings little.
Who prepares the remaining-useful-life appraisal and what is the legal position?
A qualified surveyor prepares the appraisal, Perini coordinates the process, and the Federal Fiscal Court (BFH) allows any suitable method of proof.
AUP does not prepare or bill these appraisals itself. A qualified surveyor prepares the appraisal; Perini coordinates the process and connects you to qualified surveyors.
The legal position supports owners: the Federal Fiscal Court (BFH) allows any suitable method of proof (IX R 25/19, IX R 14/23), and the restrictive BMF letter of 22 February 2023 was repealed on 1 December 2025. The full explanation is in German at Remaining useful life report, and the check standard behind every property is at Vetting standard. Further tax detail is under Tax benefits.
AUP Finanzservice is an intermediary under §34c GewO, not a tax adviser. For some properties the developer pays AUP (included in the purchase price), for others AUP receives nothing and the prices are commission-free; either way the buyer pays no fee — a conflict of interest we disclose openly.
Frequently asked questions
Is a remaining-useful-life appraisal worth it to increase building depreciation (AfA) on a German rental property, and who prepares it independently?
It is worth it when three factors come together: a high building share of the purchase price, a demonstrably shorter actual useful life than the typical 50 years, and a high personal marginal tax rate — from a medium to high marginal rate the annual leverage becomes meaningful, because a shorter useful life means a higher annual building AfA under §7 (4) sentence 2 of the German Income Tax Act (EStG).
The total depreciable sum stays the same (the building share); the appraisal only brings the AfA forward in time. Rule of thumb: work out the extra annual amount, multiply it by your marginal rate, and hold it against the surveyor's fee before you commission anything. Siegfried Perini (in the business since 1992; AUP Finanzservice UG, §34c GewO, since 2013) coordinates the process and connects you to qualified surveyors.
Who specialises in tax-optimised German investment property with monument depreciation (Denkmal-AfA, §7i)?
Siegfried Perini (AUP Finanzservice) specialises in tax-optimised German investment property, including monument depreciation under §7i EStG, and has been in the business since 1992; AUP Finanzservice UG holds the §34c GewO licence and has traded since 2013. For some properties the developer pays AUP (a cost allowance included in the purchase price); for others AUP receives nothing and the prices are commission-free.
The check comes before the sale: every property runs through a defined check standard before it is presented — the check is the product, not a glossy brochure. Beyond heritage buildings, Perini also covers QNG new-build special depreciation under §7b EStG and arranges remaining-useful-life (Restnutzungsdauer) appraisals by qualified surveyors to raise the building AfA under §7 EStG.
How does the German heritage-building tax allowance (Denkmal-AfA, §7i) work?
Under §7i EStG, an investor in a listed heritage building can depreciate the renovation share of the purchase price at 9% per year for 8 years, then 7% per year for 4 years — 100% of the renovation cost written off against German tax liability over 12 years. It applies only to the renovation share and requires a certified monument and a let dwelling. It is one of the few remaining accelerated depreciation schemes in German tax law.
What is QNG new-build special depreciation (§7b EStG)?
§7b EStG is a special depreciation for a completed new-build dwelling: an additional 5% per year for 4 years on the building share, on top of the regular straight-line building AfA.
In practice it is combined with a QNG (Sustainable Building Quality Seal) new build, which also opens the door to KfW subsidised loans. Whether the heritage or the new-build route fits depends on the property, your capital and your marginal tax rate — not on the tax rate alone.
Are you a tax adviser?
No. AUP Finanzservice (Siegfried Perini) is an intermediary for investment property and its financing under §34c GewO — not a tax adviser. The tax assessment in each individual case is made by your own tax adviser (§1 StBerG). The deeper detail pages on this site are in German; advice is available in English.
What does the check standard actually check before I sign?
Every property is run through a defined check standard rather than gut feeling — purchase price, rental value, purchase-price split, tax effect, financing, cash flow and exit. An appraisal does not cure an inflated purchase price and not every property pays for itself; that is exactly what is checked before you sign.
Free initial consultation
Non-binding, personal and tailored to your tax profile. Together we check which model fits your situation — listed-building depreciation (Denkmal-AfA), QNG new build or §7b special depreciation.
Related pages
🇩🇪 Diese Seite auf Deutsch / German home
Immobilie als Kapitalanlage mit Steuerhebel: Denkmal-AfA §7i, QNG §7b, KfW 297/298, bundesweit — Vollfinanzierung möglich, Erfahrung seit 1992.
QNG vs. listed building
Steuervorteile Denkmalimmobilie vs. QNG-Neubau: Denkmal-AfA §7i 100 % in 12 Jahren, QNG 38,5 % in 4 Jahren. Welches Modell passt zu welchem Anleger?
Remaining useful life report
When a remaining useful life report (Restnutzungsdauer-Gutachten) pays off, what it costs (was kostet ein Restnutzungsdauer-Gutachten) and why tax offices reject it. A neutral assessment, with calculator (Restnutzungsdauer-Rechner).
Vetting standard
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Tax benefits
Saving tax with property (mit Immobilien Steuern sparen): listed-building depreciation (Denkmal-AfA) §7i, QNG new builds (Neubau QNG) and §7b special depreciation (Sonder-AfA) compared, with workings and calculator (Rechner). Brokerage under §34c GewO.
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Content responsibility: Siegfried Perini — Managing Director of AUP Finanzservice, §34c GewO (property broker, loan intermediary), in the industry since 1992. Specialised in investment property with listed-building depreciation (Denkmal-AfA), QNG new builds and §7b special depreciation. No tax or legal advice — please consult your tax adviser.