What are maintenance expenses?

Maintenance expenses include all costs for ongoing maintenance work or repairs, as well as any costs incurred from renewing or improving existing parts (e.g. windows) or systems (e.g. heating).

However, if new parts that did not previously exist are added (e.g. installation of a previously non-existent bathroom), this is not maintenance but capital expenditure, which only affects depreciation. Distinguishing between maintenance and capital expenditure can often be difficult.

If the measure costs up to 4,000 Euro excluding VAT, you can always deduct the expenses as maintenance, even if they are actually capital expenditure. However, special conditions apply during the first three years after purchasing a building.

Larger maintenance expenses can be deducted immediately as business expenses or spread over 2 to 5 years.