Capital Investment
Yield Properties
Considering the actual low interest rates, to acquire a crisis-proof residential or commercial property may be a lucrative option, to provide for old age for example, and this independently of tax aspects. We will tell you what you need to do and help you find the right investment property.
Legally Protected Historic Buildings
The costs incurred in restoring legally protected historical buildings are tax-deductible up to 90%.
Even if the tax-deductible costs have decreased since 2004, investing in the restoration of old historical buildings remains a solid investment for entrepreneurs, landlords and owners. In Germany, there is no better way to save taxes! Provided you find the right property in the right location.
The actual costs of restoring the building following its acquisition constitute the assessment basis for deduction. They can be distributed over twelve years in total. Eight percent can be deducted over a period of eight years and seven percent over a period of four years.
Example:
An entrepreneur purchases a historic building and restores it into a residential and commercial building. The purchase price for the historic building without the land plot is 300.000 Euro. Modernization of the building costs 700.000 Euro. Which tax advantages does this property bring to the investor?
| Deduction | In the first 8 years | In the last 4 years |
|---|---|---|
| Building | 6.000 Euro per year (2 percent) |
6.000 Euro per year (2 percent) |
| Modernization | 63.000 Euro per year (9 percent) |
49.000 Euro per year (7 percent) |
| Total | 69.000 Euro per year | 55.000 Euro per year |
| Total over 12 years | 772.000 Euro | |
In this case, yearly tax savings in the first 8 years with a tax rate of 45 % = 31.050 Euro per year.
In this case, yearly tax savings in the last 4 years with a tax rate of 45 % = 24.750 Euro per year.

