Tools & Calculators
Depreciation Calculator (AfA) for German Rental Property
Calculate your annual tax deduction from property depreciation — linear vs degressive AfA, by tax bracket.
Property Details
Enter your property parameters
The land portion is not depreciable. Typically 20–40% depending on location. Your notary contract or Gutachten will state the split.
Degressive AfA (5% declining) is only available for buildings completed after 30 Sep 2023 (§ 7 Abs. 5a EStG).
Your Tax Situation
Determines your actual tax savings
Your personal income tax bracket. In Germany: 0% up to €12,084, then progressive up to 42% (from ~€66,761) and 45% (from ~€277,826). Add Soli (5.5% of tax) if applicable.
Legal basis
§ 7 Abs. 4 EStG — Linear depreciation
§ 7 Abs. 5a EStG — Degressive depreciation (from 2023)
Annual AfA deduction
€13,125
AfA rate: 5%
Annual tax saving
€5,513
/yr
Monthly tax saving
€459
/mo
Lifetime Depreciation
Annual tax saving — First 10 years
You can switch from degressive to linear mid-way (one-time, irrevocable). Optimal switch point is when the linear amount exceeds the degressive amount.
Estimate only
These figures are illustrative and assume stable tax rates. Actual tax savings depend on your total income, deductions, and personal circumstances. Consult a Steuerberater for binding tax advice.
Calculate rental yield
Gross yield, net yield & cash-on-cash return.
Mortgage calculator
Monthly payments & amortization schedule.
Closing costs
Grunderwerbsteuer, notary & agent fees.
Frequently Asked Questions
What is AfA (Absetzung für Abnutzung) in German property tax law?
AfA is the German system for depreciating the cost of a rental property over its useful life. As a landlord, you can deduct a percentage of the building value from your taxable rental income each year. This reduces your income tax, even though the property may actually be appreciating in value. Only the building portion is depreciable — the land value cannot be written off.
What is the difference between linear and degressive AfA?
Linear AfA deducts the same fixed amount each year (e.g., 3% of building value = 33.3 years). Degressive AfA applies a fixed percentage to the declining book value — 5% of the remaining value each year. This means much larger deductions in the early years, gradually decreasing over time. Degressive AfA is only available for new builds completed after 30 September 2023.
Can I switch from degressive to linear depreciation?
Yes, but only once and it's irrevocable. You can switch from degressive to linear AfA at any point. The optimal time to switch is when the linear deduction amount (based on the original building value) exceeds the degressive amount (based on the declining book value). After switching, you continue with linear depreciation for the remaining useful life. You cannot switch from linear to degressive.
How do I determine the land vs building split?
The purchase price must be split between land (Grundstück) and building (Gebäude). Only the building portion is depreciable. The split is typically 20–40% land depending on location — prime city locations have higher land shares. Your notary contract may state the split. Otherwise, the Finanzamt may use the Bundesfinanzministerium's Arbeitshilfe (calculation tool) to determine it. For certainty, obtain a Gutachten (surveyor's valuation).
What depreciation rate applies to my building?
New builds completed after 30 Sep 2023: 3% linear or 5% degressive. Buildings completed 1925 or later: 2% linear (50-year useful life). Buildings completed before 1925: 2.5% linear (40-year useful life). Denkmalschutz renovation costs: 9% for 8 years + 7% for 4 years (100% over 12 years). The building completion date determines the rate, not the purchase date.
What is Denkmalschutz AfA and how does it work?
Denkmalschutz (heritage protection) AfA under §§ 7h/7i EStG allows enhanced depreciation of approved renovation costs on listed buildings. You can deduct 9% per year for the first 8 years and 7% per year for the following 4 years — writing off 100% of the renovation costs in just 12 years. This applies only to renovation costs approved by the Denkmalschutzbehörde, not to the purchase price of the building itself.
Does AfA apply if I live in the property myself?
No. AfA is only available for rental properties (Vermietung und Verpachtung). If you live in the property yourself, you cannot claim depreciation. If you use part of the property as a home office (Arbeitszimmer), you may be able to depreciate that portion. Mixed-use properties are depreciated proportionally based on the rental share.
How to Use This AfA Calculator
1. Enter Your Purchase Price & Land Share
Input the total Kaufpreis and adjust the land share slider. Only the building portion (Gebäudeanteil) is depreciable. Your notary contract or a Gutachten will state the exact split — typically 20–40% land depending on location.
2. Select Building Type & Method
Choose the correct building type based on completion date. For new builds after Sep 2023, you can compare linear (3%) vs degressive (5%) AfA. The calculator shows the optimal switch point from degressive to linear.
3. Set Your Tax Bracket
Adjust your Grenzsteuersatz (marginal tax rate) — this determines your actual euro savings. A higher tax bracket means more benefit from each euro of depreciation. Add Kirchensteuer if applicable.
4. Review Schedule & Comparison
Use the tabs to see your full depreciation schedule, compare linear vs degressive methods, and understand when to optimally switch. Then use our yield calculator to see the complete investment picture.
Property Depreciation in Germany: What Landlords Need to Know (2026)
Depreciation (AfA — Absetzung für Abnutzung) is one of the most powerful tax tools available to private landlords. It allows you to deduct the cost of your rental building from taxable income over its useful life, even though the property is likely appreciating in market value. For investors in higher tax brackets, this can mean thousands of euros in annual tax savings.
The most significant change in recent years is the introduction of degressive AfA for new builds completed after 30 September 2023 (§ 7 Abs. 5a EStG). At 5% of the declining book value, this front-loads the tax benefit dramatically — a €280,000 building generates €14,000 in depreciation in year one, compared to €8,400 at the 3% linear rate. For a landlord in the 42% tax bracket, that's an additional €2,352 in tax savings in the first year alone.
The decision between linear and degressive depreciation should be informed by your investment horizon and cash flow needs. Degressive AfA is optimal if you want to maximise early cash flow or plan to sell within 10–15 years. Linear AfA provides consistent, predictable deductions over the full useful life. Crucially, you can switch from degressive to linear once — but not back. Use this calculator's comparison tab to find the optimal switch point.
After calculating your AfA, use our rental yield calculator to model the full investment, our mortgage calculator for financing details, and our closing cost calculator for the total capital requirement.