Tax optimization through higher depreciation (AfA)
Remaining Useful Life Appraisal Report (RND)
With an RND appraisal report, you provide the tax office with evidence of a shorter technical remaining useful life for your property — resulting in a higher depreciation (AfA) rate and significant tax savings over the entire rental period.
Suitable for submission to the tax office
BFH-compliant
Nationwide
10–15 business days
More depreciation — less tax
Tax law provides for a flat-rate depreciation of 2% per year for buildings — corresponding to an assumed useful life of 50 years. If your building is, however, more heavily worn technically, you can use an expert appraisal report to prove a shorter remaining useful life — and thereby claim a significantly higher depreciation rate.
In its ruling of 28 July 2021 (IX R 25/19), the Federal Fiscal Court (BFH) confirmed that the tax office must generally accept a methodically correct expert appraisal report on the remaining useful life.
Sample calculation of tax savings
- Building share: EUR 400,000 · Tax rate: 42%
- Standard depreciation (AfA) 2% = EUR 8,000/year → Tax savings: EUR 3,360/year
- With a remaining useful life of 25 years: depreciation 4% = EUR 16,000/year → tax savings: EUR 6,720/year
- Additional savings: EUR 3,360 per year — appraisal report costs amortised in under 6 months
What distinguishes a BFH-compliant appraisal report?
- Personal on-site inspection by the valuer
- Technical condition assessment and proof of building age
- Individual property analysis instead of a schematic model calculation
- Comprehensible justification of the remaining useful life pursuant to ImmoWertV
- Suitable for tax purposes under § 7 EStG
Remaining Useful Life Report
- Personal on-site inspection
- Technical condition assessment
- BFH-compliant appraisal report
- Suitable for submission to the tax office
- Qualified valuer
- Delivery in 10–15 business days
How much tax can you save?
Get a first impression in just one minute of the annual liquidity advantage a shorter remaining useful life could mean for your property. The calculation is a rough estimate for orientation purposes — free of charge and non-binding, including a PDF evaluation.
Non-binding guidance — does not replace tax advice.
For Which Properties Is a Remaining Useful Life Appraisal Worthwhile?
The potential is greatest when the actual useful life is noticeably below the statutory flat-rate value of 50 years. Typical candidates:
Buildings without comprehensive modernisation often show significant signs of wear — the actual remaining useful life is far below 50 years.
Deferred maintenance needs, construction defects, or outdated building technology significantly shorten the economic useful life.
Outdated floor plans, poor energy efficiency, or a location where a comprehensive renovation would be economically unreasonable.
Listed heritage properties with limited modernization options can often demonstrate a shortened useful life.
Note: For newer, well-maintained properties, the potential is low. We check free of charge whether an appraisal report is worthwhile for your property.
What the Federal Fiscal Court (BFH) Requires — Requirements Under Current Case Law
The strict BMF letter dated 22 February 2023 was repealed with effect from 1 December 2025. The BFH rulings of 2021 and 2024, which permit significantly more flexible means of proof, are now decisive.
Qualified valuer
Neither the Federal Fiscal Court (BFH) (2021, 2024) nor § 7 para. 4 sentence 2 EStG prescribes a formal certification. What matters is the professional qualification of the valuer and the methodological quality of the reasoning.
Personal on-site inspection
The Federal Ministry of Finance (BMF) explicitly recommends a personal on-site inspection. Tax offices regularly reject appraisal reports without an inspection.
Individual property analysis
A mere reference to the model approaches of the ImmoWertV is not sufficient. The appraisal report must specifically address the particularities of the individual property.
Current legal situation 2026: Strict requirements fully repealed
Three recent developments strengthen property owners' position: (1) The Bundesrat stopped planned statutory restrictions on 22.11,2024. (2) The Federal Ministry of Finance (BMF) fully repealed the strict 2023 requirements by letter dated 01.12,2025. (3) The Fiscal Court of Münster (FG Münster) (02.04,2025) clarified that § 7 EStG contains no formal requirements for appraisal reports.
Process of the RND appraisal report
Four steps from the free initial assessment to a BFH-compliant appraisal report for the tax office.
Upon receipt of the year of construction, floor plan, and current photos, we provide a free initial assessment of whether a shorter remaining useful life is realistic and what tax savings can be expected.
Complete inspection of the building with technical condition survey: roof, façade, windows, heating, electrics, plumbing, basement. Photo documentation of all value-relevant defects and wear.
Determination of the actual technical remaining useful life based on the ImmoWertV model approaches, the degree of modernization, and the individual property characteristics — with explicit justification of the economic unreasonableness of refurbishment.
Preparation of the complete appraisal report with photo documentation, condition analysis, and a comprehensible derivation of the remaining useful life — in the form required by the BFH and BMF for tax recognition.
Frequently asked questions about the RND appraisal report
Does the tax office have to accept the appraisal report?+
According to the BFH ruling of 28.07,2021 (IX R 25/19), the tax office must generally accept a methodically correct expert appraisal report — however, it may obtain its own counter-appraisal. In practice, carefully prepared appraisal reports from certified valuers are recognized in the vast majority of cases.
For which properties is an RND appraisal report most worthwhile?+
The potential is greatest for older buildings (built before 1975), properties with significant renovation backlog, outdated building technology, or demonstrable economic obsolescence. For newer, well-maintained buildings, the effect is minor by comparison.
What did the BMF letter dated 01.12,2025 change?+
By letter dated 01.12,2025, the Federal Ministry of Finance (BMF) has fully revoked the strict letter of 22.02,2023. This means the BFH rulings of 2021 and 2024 apply once again: you may use any suitable method of proof, a building substance appraisal is not required, and strict certification requirements no longer apply.
Can I submit the appraisal report retroactively?+
The appraisal report must refer to the valuation date (generally the date of acquisition or the beginning of the year). Within the statutory correction periods for tax assessments still open, retroactive submission is possible — please discuss this with your tax advisor beforehand.
What are common reasons for rejection by the tax office?+
(1) Lack of professional qualification of the valuer, (2) schematic model calculation without individual property analysis, (3) no personal on-site inspection, (4) incomplete photo documentation. A formal certification under DIN EN ISO/IEC 17024, on the other hand, is not legally required.
Ready for your remaining useful life appraisal report?
We check free of charge whether an RND appraisal report is worthwhile for your property — and if the result is positive, we prepare the BFH-compliant expert appraisal report.
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BFH-compliant appraisal reportMethodology suitable for the tax office in line with current case law
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View fixed pricesTypically amortises within the first year
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Free Initial AssessmentWe tell you in advance whether it is worthwhile
An RND appraisal report is a one-time cost — and saves a multiple of that every year. The best investment for landlords of older properties.
