Field help: (2023) Depreciation for the building

Depreciation in accordance with sect. 7 para. 4 of the Income Tax Act (EStG) is as follows:

• 2,5% per year for buildings completed before 1 January 1925
• 2% per year for buildings completed after 31 December 1924 and before 1 January 2023
• 3% annually for buildings completed after 31 December 2022

of the acquisition or production costs of the building. In exceptional cases, you can claim higher depreciation if the actual service life is shorter. A shorter service life must be justified and proven.

Notwithstanding this, you can apply declining balance depreciation to a building or flat in Germany or in an EU/EEA country in accordance with sect. 7 para. 5 of the Income Tax Act (EStG).

The amounts are as follows:

• Before 1 January 1995: 8 years 5% each, 6 years 2.5% each, 36 years 1,25% each
• Before 1 January 1996 (residential use): 4 years 7% each, 6 years 5% each, 6 years 2% each, 24 years 1,25% each
• After 31 December 1995 and before 1 January 2004 (residential): 8 years 5% each, 6 years 2.5% each, 36 years 1,25% each
• After 31 December 2003 and before 1 January 2006 (residential): 10 years 4% each, 8 years 2.5% each, 32 years 1,25% each

The calculation begins with the building application (in the case of construction) or the legally effective conclusion of the obligatory contract before the specified date.