Rented existing properties often carry a calculated AfA (Absetzung für Abnutzung – German tax depreciation) rate that ignores the actual technical remaining useful life of the building. A qualified report under § 7 Abs. 4 sentence 2 EStG (Einkommensteuergesetz – German Income Tax Act) corrects that distortion – creating measurable cashflow advantage across the entire holding period.
Note: Davis & Partner does not provide tax advice. This page informs about a vetted partner tool within the Davis & Partner network.
A Restnutzungsdauer-Gutachten (remaining-useful-life report) is a qualified expert appraisal that determines the actual technical remaining useful life of a rented existing property under § 7 Abs. 4 sentence 2 EStG. If this remaining useful life is shorter than the standardised assumption of generally 50 years applied by the German tax authorities, the annual AfA rate can be increased accordingly. The Federal Fiscal Court ruling BFH IX R 25/19 of 28 July 2021 confirmed the legally certain application of this method; the BMF circular of 22 February 2023 specified the formal requirements regarding qualified surveyors and methodology.
The linear building AfA for residential properties is set under § 7 Abs. 4 sentence 1 EStG at a standard two per cent over 50 years of useful life. For many existing properties built between the 1950s and 1980s, this flat assumption simply does not reflect reality: actually consumed building substance, technical obsolescence and the absence of fundamental refurbishment lead to a significantly shorter actual remaining useful life than the law assumes.
This is precisely where § 7 Abs. 4 sentence 2 EStG comes in: if a shorter actual remaining useful life is substantiated by a qualified report, the AfA rate can be increased accordingly. An example illustrates the leverage: with a building value of EUR 600,000, the standard AfA amounts to EUR 12,000 per year. If the report substantiates a remaining useful life of 25 years, the annual AfA rises to EUR 24,000 – an additional deductible position of EUR 12,000 per year. At a personal marginal tax rate of 42 per cent, this corresponds to annual tax savings of around EUR 5,040.
Projected onto a typical holding period of ten to fifteen years, cumulated liquidity advantages in the five-digit range emerge. This calculative impact is the actual lever that the Davis & Partner - Logik systematically examines for rented existing properties – as part of the strategic view on market value, marketing and tax structuring.
The typical occasion is the acquisition of a rented existing property: anyone taking over a multi-family house built in the 1960s or 1970s secures the optimised AfA basis directly after handover – for the entire holding period. The investment in the report typically amortises during the first or second holding year through the additional tax savings.
A second occasion arises with rented existing properties already held in the portfolio that have run for years on the flat AfA assumption. Here the subsequent commission of the report can increase the ongoing AfA for upcoming tax-assessment years – a typical case that Stephan Lüneburg regularly identifies during the strategic tax first-check.
The check also pays off after extensive refurbishments: if technical weaknesses are demonstrably not remedied, the report can still document a reduced remaining useful life and thereby preserve the AfA lever. For owners with several existing properties, this opens up a systematic optimisation path across the entire portfolio.
The process is kept lean and is clearly structured from the free Quick-Check to the final report ready for filing.
The online tool captures year of construction, refurbishment date and property type. Within minutes the system delivers a preliminary indication of the average remaining useful life and the resulting AfA rate. This first indication forms the decision basis for the full commission.
If the economics make sense, the qualified surveyor is commissioned. Required documents such as land-registry extract, construction plans and refurbishment evidence are submitted digitally. An on-site inspection of the building is part of the methodology under the BMF requirements.
The finished report meets the formal requirements of the BMF circular of 22 February 2023 and is submitted via the tax advisor with the next tax return. The increased AfA rate takes effect retrospectively from the reference date defined in the report.
Vetted partner tool within the Davis & Partner network
The free Quick-Check delivers an initial indication within minutes of whether a full Restnutzungsdauer-Gutachten makes economic sense for your property. Based on year of construction, property type and refurbishment history, the tool shows the expected AfA rate and thus the possible cashflow leverage.
External recommendation – Davis & Partner receives a referral commission from the partner upon contract conclusion. The price for you is not affected.
The Davis & Partner - Logik treats real estate not as an isolated sale, but as an asset building block with valuation, marketing and structuring dimensions. Owners who identify the AfA lever of their existing property today make later marketing decisions on a stronger data base – because the ongoing return effect of the holding period is clearly quantified.
Davis & Partner takes the market-value assessment and the later bank-ready property file; Stephan Lüneburg is in charge of the tax strategy; the tool partner recommended here delivers the specialised Restnutzungsdauer-Gutachten (remaining-useful-life report). Three specialists, one coordinated workflow – analogous to the cooperation logic with Dr. Klein in mortgage financing.
A qualified Restnutzungsdauer-Gutachten typically costs in the low four-digit euro range and is significantly more affordable than a full market-value appraisal. The exact fee depends on property size, year of construction and refurbishment history. The partner tool's Quick-Check directly offsets the expected fee against the anticipated tax savings, so the economic leverage is transparent before any commitment.
The Federal Fiscal Court ruling (BFH judgment IX R 25/19 of 28 July 2021) opened the path to substantiate a shorter actual useful life under § 7 Abs. 4 sentence 2 EStG (German Income Tax Act) by means of a qualified expert report. The BMF (Federal Ministry of Finance) circular of 22 February 2023 added formal requirements regarding qualified surveyors and methodology. The recommended partner works in line with these requirements, so acceptance by the Finanzamt is the rule. Final tax assessment naturally remains with Stephan Lüneburg or your own tax advisor.
Once commissioned and the documentation has been submitted, the finished report is typically available within two to four weeks. The free Quick-Check that pre-estimates the remaining useful life is completed within minutes online and provides the decision basis for whether a full commission is economically worthwhile.
A full market-value appraisal under § 194 BauGB (Federal Building Code) determines the market value of the entire property and forms the basis for sale, inheritance tax or mortgage financing. A Restnutzungsdauer-Gutachten focuses exclusively on the actual remaining useful life of the building – and thus on the annual depreciation (AfA) rate. The two report types complement each other: Davis & Partner provides the market value where required, the tool partner provides the remaining-useful-life component for ongoing cashflow optimisation.
The check is meaningful for rented existing properties built before approximately 1985, for multi-family houses and mixed-use residential/commercial buildings, and for properties that have remained for decades without a substantial refurbishment. It is also recommended when acquiring an older property prior to handover, because the AfA assessment basis acts directly across the entire holding period.
Transparency notice
Affiliate link in accordance with § 5a UWG (German Act Against Unfair Competition): upon contract conclusion with the partner nutzungsdauer.com, Davis & Partner receives a referral commission from the partner. The price for you is not affected. Recommendation within our strategic partnerships – vetted for our clients. This page does not constitute tax advice; binding tax assessments are provided exclusively by Stephan Lüneburg or your own tax advisor within a mandated advisory relationship.
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