Real Estate: How high earners can save many taxes when buying new apartments
Real estate investors can get a lot of money back through tax depreciation. How it works, what equity is required for it, and what mistakes to avoid.
Kruno Crepulja, CEO of Instone, a property developer, has reported high demand from investors for new rental apartments in Germany. The demand is driven by a new law that allows for higher tax deductions on investments in new energy-efficient apartments, known as Sonder-AfA. According to Instone's calculations, an investor can save up to 65,000 euros in taxes over four years and 100,000 euros over ten years on a 85 sqm apartment purchased for 484,500 euros.
The Sonder-AfA is available until 2029 and can be combined with other tax deductions, making it an attractive option for high-income investors.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
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