Older buildings
Houses and flats built decades ago and not comprehensively modernised since.
Remaining useful life report · Munich metropolitan region
More depreciation.
Lower taxes.*
Is your rental building technically and economically older than the German tax office assumes by default? A report on the remaining useful life allows you to evidence the shorter useful life – and to claim higher depreciation every year for that period.
* In the years of increased depreciation. Total depreciation stays the same; it is brought forward. Whether higher depreciation is accepted is decided by the tax office case by case.
- Prepared to the standards of the Federal Fiscal Court (BFH IX R 25/19, IX R 14/23)
- Personal on-site inspection
- Usually ready within 10–15 working days after inspection and receipt of documents
- For rented property, report fees are generally deductible as income-related expenses (Sec. 9 (1) sentence 1 EStG)
Free explainer video · Legal status 7 October 2026
Remaining useful life in 3 minutes
How a remaining useful life report can increase the depreciation of your rental property in Germany – the basics for private investors
In around three minutes: how building depreciation works, what a remaining useful life report can do, who it may be for and how to get one. Legal status 7 October 2026.
Who for: Private investors with rented flats or houses in Germany who want to know whether a remaining useful life report can increase their depreciation.
Module 1: Remaining useful life in 3 minutes
- What is it about?
- Only the building is depreciated
- How a shorter useful life works – an example
- Example: the effect over 10 years
- Who is it for?
- The legal situation in brief
- Your next step: the pre-check
This short course provides general information on the remaining useful life of buildings under German tax law (legal status 7 October 2026). It is not tax or legal advice, no assistance in tax matters and replaces neither advice from a tax adviser nor a report for your property. Examples are simplified and cannot be transferred to your case. Whether and to what extent higher depreciation is accepted is decided by the tax office case by case. Higher depreciation shifts depreciation forward in time; total depreciation stays the same. No advisory or information contract is concluded through use. Statutory citations are partly abbreviated; the official German wording is authoritative.
Worked example
What a shorter remaining useful life can do
Example: building share €400,000, acquired in the current year, marginal tax rate 42 %. Without a report, a flat rate of 2 % depreciation per year usually applies – with an evidenced remaining useful life of 25 years it is 4 %.
Without report · 2 %€8,000depreciation per year€3,360 tax relief
With report · 25 years = 4 %€16,000depreciation per year€6,720 tax relief
Advantage in the example+ €3,360tax relief per yearapprox. €33,600 over 10 years
Simplified model calculation; constant marginal tax rate assumed. Solidarity surcharge and church tax may fall in addition. Total depreciation stays the same: the higher depreciation is brought forward and ends after 25 years (at 2 % it would run for 50 years). If the property is sold within 10 years of acquisition, the additional depreciation increases the taxable capital gain (Sec. 23 (1) sentence 1 no. 1, (3) sentence 4 EStG). Whether and to what extent higher depreciation is accepted is decided by the tax office case by case.
Who it is for
Typical properties with potential
The potential is greatest where the actual useful life is clearly below the statutory flat-rate value.
Maintenance backlog
Deferred maintenance, building defects or outdated building services shorten the useful life.
Economic obsolescence
Outdated floor plans, poor energy efficiency or a location where a full refurbishment does not pay off.
Rental & investment
Private individuals and companies with rented property – owner-occupied property is not depreciated.
For newer or fully refurbished buildings the effect is usually small. We check free of charge whether a shorter remaining useful life is realistic for your property – costs only arise once you commission us.
Process
Four steps to your report
- 1
Free pre-check
Send us the year of construction, purchase data and a few photos. We tell you without obligation whether a shorter remaining useful life is realistic and quote a fixed fee.
- 2
On-site inspection
Personal inspection recording the condition of roof, façade, windows, building services and basement – with photo documentation.
- 3
Derivation
Determination of the remaining useful life using recognised methods of the ImmoWertV or SW-RL, supplemented by the individual findings on site.
- 4
Report for the tax office
A comprehensible report, usually within 10–15 working days – for submission to the tax office by you or your tax adviser. The report is written in German.
Legal basis
What the law allows – and what the courts require
For buildings held as private assets, a flat-rate depreciation of 2 % per year usually applies. If the actual useful life is shorter, depreciation may be based on it (Sec. 7 (4) sentence 2 EStG). As the owner, you must provide the evidence – the report is the basis for this.
- BFH, 28 July 2021 – IX R 25/19Any method suitable in the individual case can support the evidence; a building fabric survey is not mandatory.
- BFH, 23 January 2024 – IX R 14/23A report based on the ImmoWertV can suffice if it is reasoned for the specific property; merely referring to model values is not enough.
- Fiscal Court Münster, 2 April 2025 – 14 K 654/23 EA report based on the ImmoWertV can be suitable evidence.
- Federal Ministry of Finance, 1 December 2025The strict ministry circular of 22 February 2023 has been revoked – the law and case law are decisive again.
- Outlook: Annual Tax Act 2026The Bundesrat suggests a restriction (BR-Drs. 447/26 (Beschluss) of 25 September 2026). Whether and from when it applies is open.
How to recognise a robust report
- Personal inspection by the expert
- Technical condition survey with photo documentation
- Individual property analysis instead of a pure model calculation
- Comprehensible derivation under ImmoWertV or SW-RL
- Correct valuation date: usually the acquisition
The report is an estimation basis which the tax office and fiscal court assess freely. We do not provide tax advice – please coordinate the submission with your tax adviser.
Your expert
Tobias Streckel
I have been valuing real estate for around 20 years – for a long time in the institutional real estate industry, today with my own valuation office for private owners, companies, banks and courts. Remaining useful life reports are one of my key areas.
- Dipl.-Betriebswirt (FH) Real Estate Management
- Master of Laws (LL.M.)
Real Estate - Reports under ImmoWertV or SW-RL
More about the office: realestate-appraisal.de
FAQ
Good to know
Does the tax office have to accept the report?
According to the Federal Fiscal Court ruling of 28 July 2021 (IX R 25/19), the taxpayer may use any method of presentation that is suitable in the individual case. The tax office assesses the report; it may review it and obtain its own counter-report. Carefully reasoned reports with an on-site inspection are regularly accepted in practice; the tax office decides on acceptance case by case.
Which properties may qualify?
The potential is greatest for older rented buildings that have not been comprehensively modernised, with a maintenance backlog, outdated building services or economic obsolescence. For newer, well-maintained buildings the effect is small – whether a shorter remaining useful life is realistic is what we tell you in the free pre-check.
What does higher depreciation do – and what not?
Higher depreciation spreads the building value over fewer years: during this period your tax burden falls, afterwards depreciation ends correspondingly earlier. Total depreciation stays the same; it is brought forward. If the property is sold within ten years of acquisition, the additional depreciation increases the taxable capital gain (Sec. 23 (1) sentence 1 no. 1, (3) sentence 4 EStG). Please clarify the effect in your case with your tax adviser.
What does a remaining useful life report cost?
Costs depend on the property; after the pre-check you receive a binding fixed fee. For rented property, report fees are generally deductible as income-related expenses (Sec. 9 (1) sentence 1 EStG).
How long does it take?
Usually 10 to 15 working days after the on-site inspection and receipt of the documents. The report is written in German, as it is submitted to a German tax office.
Which documents do you need?
For the pre-check: year of construction, purchase date, purchase price or building share, details of modernisations and a few current photos. For the report: floor plans, purchase contract and – for condominiums – documents of the owners' association.
Can I use the report for past years?
The report refers to a valuation date, usually the date of acquisition. Whether earlier assessments can still be amended depends on the correction rules and open tax assessments – please clarify this with your tax adviser.
What changed legally in 2025/2026?
The strict circular of the Federal Ministry of Finance of 22 February 2023 was revoked by circular of 1 December 2025; the law and case law are decisive again. A restriction is being discussed in the legislative procedure for the Annual Tax Act 2026 (opinion of the Bundesrat, BR-Drs. 447/26 (Beschluss) of 25 September 2026). Whether and from when it applies is open.
Could a shorter remaining useful life apply to your property?
Send us the key data – you will receive a free, non-binding assessment and, if you are interested, a fixed fee.
