Sonder-AfA and degressive AfA
Extra depreciation for new rental housing — §7b and §7 Abs. 5a EStG.
Two incentives apply to new residential buildings, not to typical purchases of existing flats. §7b EStG grants an extra 5 % per year for four years on top of normal AfA for new rental housing built under a building application filed in specific windows — currently after 31 December 2022 and before 1 October 2029 — only if building costs do not exceed €5,200 per square metre, with the special-depreciation basis itself capped at €4,000 per square metre, and, for that window, Efficiency House 40 standard with a sustainability seal; the flat must be let for ten years. §7 Abs. 5a EStG allows a declining-balance AfA of 5 % for residential buildings in the EU/EEA whose construction starts, or which are bought under a contract, between 1 October 2023 and 30 September 2029. Both depend on dates and certificates you can prove.
Last reviewed: by Yann Lephay.