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German special depreciation for new rental flats (s. 7b Income Tax Act)

For new rental flats whose building application was filed from 2023 and before 1 October 2029, up to 5% a year may be claimed in the year of completion and the three following years, on top of ordinary depreciation — provided building costs do not exceed EUR 5,200 per square metre. The base is capped at EUR 4,000 per square metre.

2026 rules — verified on September 23, 2026Free, no account

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Sources and assumptions

  • gesetze-im-internet.de — EStG § 7b Abs. 1 Satz 1 — tax year 2026, verified on September 23, 2026
    Excerpt from the source : « im Jahr der Anschaffung oder Herstellung und in den folgenden drei Jahren Sonderabschreibungen bis zu jährlich 5 Prozent der Bemessungsgrundlage neben der Absetzung für Abnutzung nach § 7 Absatz 4 oder 5a in Anspruch genommen werden »
  • gesetze-im-internet.de — EStG § 7b Abs. 1 Satz 1 — tax year 2026, verified on September 23, 2026
    Excerpt from the source : « im Jahr der Anschaffung oder Herstellung und in den folgenden drei Jahren »
  • gesetze-im-internet.de — EStG § 7b Abs. 2 Satz 2 Nr. 2 — tax year 2026, verified on September 23, 2026
    Excerpt from the source : « die aufgrund eines nach dem 31. Dezember 2022 und vor dem 1. Oktober 2029 gestellten Bauantrags oder einer in diesem Zeitraum getätigten Bauanzeige hergestellt werden, 5 200 Euro je Quadratmeter Wohnfläche nicht übersteigen. »
  • gesetze-im-internet.de — EStG § 7b Abs. 3 Nr. 2 — tax year 2026, verified on September 23, 2026
    Excerpt from the source : « maximal 4 000 Euro je Quadratmeter Wohnfläche für Wohnungen im Sinne des Absatzes 2 Satz 2 Nummer 2. »

Calculation assumptions

  • The building application or notice was filed after 31 December 2022 and before 1 October 2029; applications from 2018 to 2021 carry different limits (EUR 3,000 and EUR 2,000).
  • The building meets the 'Efficiency House 40' standard with a sustainability class, evidenced by the Sustainable Building quality seal.
  • The flat is let for residential use, for consideration, in the year of completion and the following nine years; otherwise the special depreciation is reversed.
  • Ordinary depreciation under s. 7(4) or (5a) comes on top and is not computed here. Costs relate to the flat, excluding land.

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This result is provided for information purposes only and does not constitute personalised tax advice. Check your situation with the tax authorities or a professional.