Save on Taxes with a Listed Building as Your Company’s Head Office in Germany
Save on Taxes with a Listed Building as Your Company’s Head Office in Germany
If you would like to use a listed building in Germany as a prestigious German company headquarter, fiscal promotion in Germany makes your goal more achievable. For 12 years increased depreciation can be used to save on taxes:
Year 1 – 8 : 9% p.a.
Year 9 – 12 : 7% p.a.
Normally yearly depreciation on buildings is just up to 3% in Germany.
Tax deductible are costs for construction measures, the nature and extent of which are necessary for keeping the building as a monument or for its reasonable use (§7i EStG). This applies to costs of facade renovation, for example.
Conditions for increased depreciation are:
• The building must be located in Germany
• Tax-promoted expenditure has to be certified by the competent authority (e.g. the monument protection authority)