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Tobias Streckel
Tobias Streckel Real Estate Valuer Diplom-Betriebswirt (FH) in Real Estate Management
Master of Laws (Real Estate)
📞 0176 / 6440 3765 ✉️ ts@bewerter-immobilien.de
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    Depreciation calculator — calculate tax savings

    Non-binding orientation aid and not tax advice

    A remaining useful life appraisal report can significantly increase your annual depreciation — and thereby permanently reduce your tax burden as a real estate investor. Calculate here how much you can additionally save compared to the statutory depreciation.

    All information provided without guarantee. This calculator serves as non-binding orientation and does not replace tax advice.

    Purchase & incidental costs
    EUR
    50,000EUR 20 million
    Notary + land register entry — typically 1.5–2.5% of the purchase price
    0 %5 %
    Usually 3.57% per party (incl. VAT) — in some cases 0%
    0 %8 %
    Jan 2000
    Property
    In the case of full refurbishments, the economic year of construction may differ from the actual one.
    19002025
    Only the building share (= 100% minus land share) is tax-deductible via depreciation.
    0 %80 %
    Rural5–15 % Suburb15–25 % City25–40 % City centre40–60 % Prime location60–80 %
    Tax & Appraisal
    Your personal marginal tax rate. The higher the rate, the greater the savings from depreciation.
    14 % 45 %
    Remaining useful life (appraisal report)
    The shorter the remaining useful life, the higher your depreciation rate. A valuer determines the exact figure.
    10 yrs50 yrs
    Refurbishment
    needs
    10–20 yrs
    Period building20–30 yrs Existing stock30–40 yrs Modernised40–47 yrs New build47–50 yrs
    500 €8,000 €

    Results
    Building value (depreciation base)
    —
    —
    Tax savings — statutory depreciation (2% p.a.)
    —
    Tax savings — with appraisal report
    EUR / year
    —
    —
    over 10 years
    —
    —
    Optimise your taxes now
    Request an appraisal report
    Statutory With appraisal report
    Depreciation rate — —
    Building value — —
    Annual depreciation — —
    Tax savings / year — —
    Tax savings over 10 yrs. — —
    Additional tax savings possible through an appraisal report over 10 years —
    Purchase price allocation
    Cumulative tax savings — 30-year progression
    Depreciation schedule
    Year Statutory depreciation Statutory book value Depreciation per appraisal report Book value per appraisal report Savings
    Enter your details …

    * Approximate value: Years already depreciated are accounted for in a simplified manner (the book value starts from the date of purchase, not from today).

    Have your precise value determined through an appraisal report A remaining useful life appraisal report pursuant to Section 7 (4) sentence 2 EStG (German Income Tax Act) can substantiate the actual remaining useful life of your property vis-à-vis the tax office, thereby securing you a higher depreciation rate than the statutory 2–3% per annum.
    Request an appraisal report

    Frequently asked questions about the depreciation calculation

    What is depreciation — and why is it worthwhile for real estate investors?

    The depreciation for wear and tear (AfA) is a tax benefit: the tax office recognises that buildings lose value over time and allows you to deduct this loss in value annually as income-related expenses. Pursuant to Section 7 (4) EStG (German Income Tax Act) you can, as a flat rate, claim 2% of the building value per year for tax purposes. This reduces your taxable income — and thus your tax burden — permanently over the entire depreciation period.

    Why can I depreciate more than the statutory 2% with an appraisal report?

    Section 7 (4) sentence 2 EStG (German Income Tax Act) permits a higher depreciation rate if the actual remaining useful life of your building is demonstrably shorter than the standard 50 years. An expert opinion provides exactly this proof — and the tax office must accept it (Federal Fiscal Court, ruling of 28.07,2021). The shorter the remaining useful life determined by the appraisal, the the higher the individual depreciation rate: for a remaining useful life of 25 years, for example, 4% instead of 2% per annum.

    What is the difference between the purchase price and the depreciation basis (building value)?

    Not the entire purchase price is depreciable. The tax office distinguishes between two portions:

    • Building portion → depreciable (the building wears out)
    • Land share → not depreciable (land does not lose value)

    The land portion depends heavily on the location: in large cities often 40–60%, in rural areas typically 10–20%. Based on this, our calculator automatically determines your personal depreciation basis.

    What does a remaining useful life appraisal report cost — and when does it pay for itself?

    Depending on the property value, the appraisal report costs typically range between €500 and €3,000. Decisive factor: the costs themselves are tax-deductible as income-related expenses. As a rule of thumb — it's worthwhile if the additional annual savings compared to the statutory depreciation exceed the appraisal costs within 2–4 years. Our calculator shows you the payback period directly in the result.

    For which properties is an appraisal report particularly suitable?

    An appraisal report is particularly worthwhile for:

    • Buildings with year of construction before 1990
    • Properties with a discernible need for or backlog of refurbishment
    • Higher purchase prices with a large building share
    • A personal tax rate from approx. 35%

    For new builds (year of construction after 2000) and low purchase prices, the benefit is often minor — an appraisal report is less worthwhile in such cases.

    How long does the increased depreciation (AfA) rate apply?

    Exactly as long as the remaining useful life determined in the appraisal report lasts. If the remaining useful life according to the appraisal report is, for example, 28 years, you can apply the higher depreciation (AfA) rate for 28 years — after which the building value is fully depreciated for tax purposes. The appraisal report is submitted once to the tax office and applies to all subsequent years.

    Does this calculator replace an expert appraisal report or tax advice?

    No. The calculator serves exclusively for non-binding orientation. It does not calculate a legally binding depreciation basis and does not take into account individual tax particularities. All information provided without guarantee. For reliable tax optimization, we recommend consulting a tax advisor as well as commissioning an expert opinion pursuant to Section 7 (4) Sentence 2 of the German Income Tax Act (EStG) from a publicly appointed valuer.

    Request an appraisal report now

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    Briefly describe your request to us. We will respond within one business day with a concrete offer — free of charge and without obligation.

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    Tobias Streckel
    Tobias Streckel Real Estate Valuer Diplom-Betriebswirt (FH) in Real Estate Economics
    Master of Laws (Real Estate)
    0176 - 6440 - 3765 ts@bewerter-immobilien.de Contact (vCard) LinkedIn
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    Overview

    • Clients
    • Valuation methods
    • Appraisal report
    • Investment valuation
    • Clients

    Technical articles

    • Valuation methodology
    • Project development
    • Case law & judgments

    Recent articles

    • Valuation methodologyMortgage lending value report under BelWertV and PfandBG: fundamentals, methodology and current requirements
    • RICS Red Book and Blue Book – international standards for real estate valuation and surveying
      Valuation methodologyRICS Red Book and Blue Book in German valuation practice
    • Real Estate Market Report
      MunichMunich Market Report Q1/2026
    • Symbolic image Federal Fiscal Court (Bundesfinanzhof) – qualified market value appraisal as authoritative evidence of the lower property value vis-à-vis the tax authorities
      Real estate purchase price allocationIX R 26/24: Purchase price allocation for listed properties – no zero land value, finite remaining useful life

    Market data at a glance

    Residential properties (purchase prices)
    ▲ 1.4 %
    100.52025 = 100
    Q1/2026
    Office properties (purchase prices)
    ▲ 1.9 %
    90.42022=100
    Q1/2026
    Retail properties (purchase prices)
    ▲ 1.5 %
    89.32022=100
    Q1/2026
    Multi-family house (purchase prices)
    ▲ 2.2 %
    98.52022=100
    Q1/2026
    Residential interest rates (10yrsfixed rate)
    ▲ 0.23 Pp
    3.74% p.a.
    05/2026
    Inflation (consumer price index)
    ▲ 0.30 Pp
    2.30Percent
    06/2026

    Are you interested in the general development of the real estate market in Germany? Under Market development you will find a quick overview.

    Q&A - Questions & Answers

    Frequently asked questions

    Answers to the most important questions about real estate valuation and appraisal reports.

    To the questions & answers
    LOCATIONS
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    DEEN
    • Condensed appraisal report Quick orientation on the current value of your property
    • Market value appraisal Detailed appraisal report to determine the current market value
    • Mortgage lending value report Long-term sustainable value of a property as loan collateral pursuant to BelWertV & PfandBG
    • Remaining Useful Life Report Tax consideration of an actual remaining useful life
    • Expert opinion Review for plausibility and traceability
    • Cost approach Building fabric + land value Valuation by calculating the land and building value
    • Sales comparison approach Market comparison Derivation of the property value from comparable properties
    • Income approach Income + land value Valuation taking into account income and land value
    • Residual value assessment Land value Determination of the land value from expected proceeds and costs.
    • DCF method Discounted Cash Flow Determination of the present value based on future payments
    • Profitability calculation DCF | Static Calculation of the yield, cash flow and profitability of a property
    • Real estate funds Share price Valuation of open-ended and closed-ended real estate fund units
    • Project calculation Development Economic assessment of a real estate project
    • Feasibility study Feasibility Study Assessment of the feasibility and economic viability of a real estate project
    • Expert opinion Validation Review for plausibility and traceability
    • Second Opinion Validation Assessment of a real estate investment by an additional qualified third party
    • Private individuals Real estate valuations for purchase, sale, inheritance, gift, divorce or tax purposes.
    • Financial and real estate industry Real estate valuations for capital management companies (KVG/AIFM), banks, insurers and institutional investors.
    • Companies & Investors Real estate appraisal reports for acquisitions and disposals, portfolio analyses, accounting and investment decisions
    • Public sector and judiciary Real estate appraisal reports for court proceedings, expropriations, valuations and public decision-making processes
    • Insolvency administrators Real estate appraisal reports for insolvency administrators and restructuring proceedings
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