Why monument
Listed properties offer an impressive aesthetic that is characterized by a wide range of architectural styles, thus creating a diverse visual appeal.
They not only represent an aesthetic enrichment for individualists, but also offer high investment potential. Depreciation in connection with monument protection refers to tax benefits granted to owners for the preservation of historic buildings.
The lover
People with an affinity and passion for historic buildings, a special ambience and individual requirements for their living space are in exactly the right place when it comes to listed properties. These people not only appreciate the aesthetic and architectural beauty of these buildings, but also have a strong connection to the history, culture and heritage that these properties bring with them.
01
ATMOSPHERE
Listed properties create a special atmosphere that establishes a connection to the past and conveys a unique feeling of living.
02
Aesthetic appeal
The architectural richness and detailed ornamentation or features of the properties offer an aesthetic appeal that is generally unmatched by modern buildings.
03
Connection to history:
Living in a historic building makes it possible to establish a connection to history and become rooted in a piece of the past.
05
CULTURAL HERITAGE
Monuments contribute to the preservation of cultural heritage. By preserving and maintaining these buildings and ensembles, the history of a region is kept alive.
The investor
Investing in heritage properties requires an understanding of historical and architectural aspects, as well as a dedication to preserving cultural heritage. It is both financially and culturally rewarding, as it offers the opportunity to generate financial returns while contributing to the preservation of historical values. Heritage properties offer a variety of benefits that make them attractive to investors and residents alike.
01
increase in value
Monuments often have the potential to increase in value over time, especially if the refurbishment measures have been carried out and the property has been adapted to today's needs.
02
Tax incentives
Monument depreciation, also known as Denkmal-AfA (depreciation for wear and tear), is a tax regulation in Germany that offers owners of monuments financial incentives to promote the preservation of these historic buildings. Depreciation makes it possible to claim a large proportion of the expenses for maintenance and repair against tax
03
Long-term stability
Long-term stability: Listed properties generally have a long history and a solid building fabric. This offers long-term security in terms of value retention and appreciation potential.
04
FEELING GOOD
Enjoy the luxury of modern life while living in a setting of history and culture. State-of-the-art facilities and amenities offer the most modern comfort.
Simplified sample tax calculation*
Suppose you are interested in buying a listed apartment that is located in a historic district and is to be renovated to restore its original charm:
Purchase price of the apartment: 350,000 euros
Renovation costs (proportionate to the purchase price): 262,500 euros (75% of the purchase price)
Old substance (proportionate to the purchase price): 35,000 euros
Land value: (proportionate to the purchase price): 52,500 euros
Now let's take a look at the tax benefits you can get from the listed status of the property:
TAX DEPRECIATION
In Germany, you can now depreciate all measures in connection with the renovation and continued use of the property under monument law. (Exterior installations and other things that are not related to the preservation of the building are excluded from this).
Calculation of tax depreciation:
Tax depreciation = 75% of the purchase price. This means that you can write off the refurbishment costs of EUR 262,500 in your taxes, which would have a positive effect on your income tax.
Tax savings
Let's assume your personal income tax rate is 40%. Then, as an owner-occupier, you can depreciate the refurbishment costs pro rata over 10 years at 9% per year. For investors, this depreciation option is also 9% in the first 8 years and 7% of the eligible refurbishment costs in the following 4 years.
Calculation of tax savings
262,500 euros (refurbishment costs) x 9% (annual depreciation amount) = 23,625 euros
-> this amount is now multiplied by the individual tax rate:
23,625 euros x 40% = 9,450 euros potential tax savings per year.
You can of course obtain a sample calculation for your home if you are interested.
