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 a high demand for investments in new rental apartments, driven by a new law that reintroduces special depreciation allowances (Sonder-AfA) for such investments. The law, which came into effect in 2024, allows for higher depreciation rates, resulting in significant tax savings for investors.
According to Instone's calculations, an investor who purchases a €484,500 apartment can save around €65,000 in taxes over four years, or €100,000 over ten years. The Sonder-AfA is available until 2029 and can be combined with other depreciation methods, but experts warn that individual circumstances, such as income level and property value, can affect the actual tax savings.
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.
