New builds as an investment: what declining-balance depreciation and section 7b offer

A new build can be written off far faster than an older building: 5 % declining-balance depreciation, plus, where the legal conditions are met, a 5 % special allowance under section 7b of the German Income Tax Act in the first four years. That writes off around 40 % within four years. An older building at 2 to 2.5 % a year takes 16 to 20 years to get there.

The full comparison is set out under Amberg aVIEW.

The rates given state the legal position and are not a promise about your result. Tax assessment belongs with your tax adviser in every case.