According to German Income Tax Law (Ã‚Â§ 7i EStG) Investments in the restoration of a heritage building are subject to faster than usally possible tax write offs.
The same applies for restoration of buildings in redevelopment areas [German Income Tax Law (Ã‚Â§ 7 h EStG)].
Normal write offs are 2,5% per year for 50 years = 100%
The amount legible for write off is NOT the buying costs, nor the land, nor the buying side costs, BUT only the amount put into the restoration of the protected building after the sale.
Different write offs for different usage
Investments in buy-to-let property are handle little different than investments in properties for self usage:
Tax-write offs for buy-to-let investments
While renting the property the tax breaks are slightly different:
8 years with 9 % p. a. and the following 4 years with 7 % p. a. (Ã‚Â§ 7 i EStG) = 100%
Write-offs for restoration in buildings for self usage
are 10 years with 9 % p. a. (Ã‚Â§ 10 f EStG) = 90%
Because of this laws most heritage buildings are offered without restoration, and typically one signes a separate contract for the construction.
The start after the sale is very important to not loose the write off possibilities.