FAQ
Find answers to the most common questions about AfA Sparen, useful life appraisals, and using depreciation for tax purposes.
An appraisal is often worthwhile if you own a rented property and the actual remaining useful life is materially shorter than the standardized useful life. It is particularly relevant for buildings that are roughly 30+ years old and have neither undergone a full core refurbishment within the last 25 years nor a comprehensive modernization within the last 15 years. You can check your case upfront using our free preliminary assessment.
You receive a well-documented appraisal report on the property’s actual remaining useful life as a PDF via email. In addition, you get a practical cover letter template (pre-drafted by a tax advisor) that you can submit together with the report as part of your tax filing.
The free preliminary assessment in our calculator needs no documents at all — only basic building details (year of construction, construction type, areas, modernizations, condition, use). If you then commission the appraisal, the purchase contract is the most important document: it determines how the purchase price is split between land and building, and therefore the base your depreciation is calculated on. Floor plans, a living area calculation, an energy certificate, the sales listing and — for apartments — owners association meeting minutes are also helpful. We do not need building authority records. We tell you upfront what is actually required in your case.
In our calculator you can generally choose any valuation date retroactively back to 01/01/2020. If you acquired the property after that, it usually makes sense to use the date on which benefits and burdens transferred (“transfer of possession, risk and rewards”). Otherwise, we often recommend using January 1 of a given year. Important: all inputs must reflect the circumstances as of the chosen valuation date. If you are unsure, clarify the best date with your tax advisor.
Yes—this can be possible, especially for tax years that have not yet become final (i.e., where no final tax assessment notice is in place). In such cases, a shorter actual remaining useful life can be applied and the remaining tax basis of the building may be reallocated accordingly. In practice, depreciation is determined on a yearly basis and can be reassessed. Please coordinate the specific implementation with your tax advisor.
Depreciation reduces your taxable income because part of the building value is recognized as an expense each year. If a shorter remaining useful life results in higher annual depreciation, your tax burden may decrease—often improving liquidity and cash flow.
Even with a long-term holding strategy, a shorter depreciation period can be beneficial because it shifts tax effects forward. That often means more liquidity in the early years—e.g., for reserves, renovations, or additional investments. The total depreciation is still limited by the depreciable building value, but the timing can change substantially.
In many cases, the appraisal fee can be deducted—typically as income-related expenses for rental income or as business expenses for business-use properties—because it relates to determining and optimizing depreciation. The exact treatment depends on your situation; consult your tax advisor if in doubt.
For tax purposes, land is generally assumed not to wear out. Buildings, however, deteriorate over time due to age, use, and technical obsolescence. Therefore, only the building portion (not the land) is depreciable.
1) Free preliminary assessment in our calculator. 2) Data entry and—if needed—upload or supplementation of documents. 3) Preparation of the appraisal report by a certified expert. 4) Delivery of the report and a cover letter to support submission to the tax office (typically via your tax filing).
As standard you receive your appraisal within 3–5 business days once we have all the information we need. The Express option is faster. If an on-site inspection is included, the appointment depends on local availability; missing documentation or follow-up questions can extend the timeline further.
Many tax offices expect an on-site inspection for remaining useful life evidence—or at least consider it a strong quality indicator. We recommend ordering the inspection upfront, as it helps document condition more robustly and often reduces follow-up questions.
The “standardized” useful life is a typified assumption used in tax practice. The economic remaining useful life is closer to reality: it describes how long the building can likely be used in an economically sensible way—depending on condition, construction, modernizations, and use.
The assessment follows recognized valuation principles, including key concepts reflected in the German valuation framework (e.g., ImmoWertV principles). Core inputs include year of construction/age, construction type, maintenance level, defects and damages, modernizations (type, scope, timing), usage type, and technical equipment. Modernizations can extend useful life; significant deficiencies can shorten it.
The year of construction typically refers to the year of (predominant) completion for first use. If a building was damaged and restored, the original year usually remains applicable. If it was completely destroyed and rebuilt, the new-build year is relevant. If the year cannot be determined reliably, it may be estimated based on plausible evidence.
A comprehensive refurbishment usually means more than cosmetic renovation. Key building components and technical systems are renewed or substantially repaired in a holistic way—such as major upgrades to electrical systems, heating, or piping—resulting in a materially improved overall condition.
A core refurbishment goes further: the building is largely stripped back to its structural elements (e.g., load-bearing structure remains) and major components and technical installations are renewed. Typical scope includes heating/water pipes, electrics, windows/doors, heating system and often roof/façade depending on condition. The goal is a condition functionally close to new, while preserving the structural framework.
Your appraisal is prepared by experts who are approved across Europe and certified in accordance with DIN EN ISO/IEC 17024. This is an important quality indicator and supports the report’s credibility and traceability.
In principle, yes—provided the report is technically sound, plausible, and transparent. Following the German Federal Fiscal Court ruling of 28/07/2021 (case IX R 25/19), a shorter actual useful life can be applied when supported by an appropriate proof. Please note that laws, administrative practice, and case law can change over time; seek tax advice if needed.
If the valuation date falls within a tax year you have not yet filed, you can use the appraisal directly for that return. If you already received a tax assessment notice, it depends on whether it has become final. In time-sensitive situations (e.g., a recently issued notice), contact your tax advisor promptly.
In practice, the determined remaining useful life usually remains relevant as long as there are no material changes to the property (e.g., major modernization, change of use, or significant damage). If such changes occur, a reassessment may be appropriate.
If the building is very new or its condition/modernization level suggests that the actual useful life does not materially differ from typified assumptions, the tax benefit may be limited. That is exactly why AfA Sparen offers a free preliminary assessment—to provide a reliable indication upfront.
Still have questions? Our team is happy to help.
Understanding the Report
A remaining useful life (AfA) report determines the actual economic remaining useful life of a property based on its condition, year of construction and completed modernisations — rather than relying on standard statutory assumptions.
Based on the report, a shorter useful life can be factually substantiated to the tax authorities. This may allow for higher annual depreciation (AfA) and can lead to a noticeable reduction in your tax burden.
Instead of the statutory standard depreciation period of 50 years, a report can often justify a significantly shorter remaining useful life — for example 25 to 37 years. This results in higher annual depreciation amounts.
Start with a free initial assessment of your personal depreciation.
No obligation • Report delivery possible within 3–5 business days
Our Process
A clearly structured process – from the initial assessment to confident tax use.
We review, without obligation, whether your property may benefit from a reduced remaining useful life – quickly and without risk.
If a potential benefit is identified, you can commission the appraisal in just a few clicks. The report is prepared by certified expert appraisers (DIN EN ISO/IEC 17024).
Your property is professionally assessed and documented in a technically, economically and tax-relevant manner.
We support you in using the appraisal correctly for your tax return and assist with any follow-up questions.
AI assistants
One click opens your AI assistant with a prepared question. It reads our services and prices and explains which appraisal fits your property.
Connect AfAMax to your AI assistantTax Savings Potential
Estimated tax impact based on building year and fit-out quality.
| Year built | Very basic fit-out | Basic fit-out | Average fit-out | High-quality fit-out | Premium fit-out |
|---|---|---|---|---|---|
| 1973 | 8.00% | 4.67% | 3.00% | 2.00% | 1.33% |
| 1978 | 4.67% | 3.00% | 2.00% | 1.33% | 0.86% |
| 1983 | 3.00% | 2.00% | 1.33% | 0.86% | 0.50% |
| 1988 | 2.00% |
For the typical objections tax offices raise against a remaining-useful-life appraisal, we have prepared reasoned answer letters citing current case law.
Create a solid basis for increased depreciation with a certified remaining useful life report for tax purposes. Benefit from a simple online submission, expert review by certified appraisers, and a report that serves as a reliable basis for your tax return.
Whether a valuation report reduces your annual tax burden depends on your individual case.
100+ property owners across Germany have already optimized their depreciation with AfA Sparen.
Create a solid basis for increased depreciation with a certified remaining useful life report for tax purposes. Benefit from a simple online submission, expert review by certified appraisers, and a report that serves as a reliable basis for your tax return.
Whether a valuation report reduces your annual tax burden depends on your individual case.
100+ property owners across Germany have already optimized their depreciation with AfA Sparen.
Benefits
Create a well-founded basis for your depreciation with a traceable remaining useful life assessment.
The shorter the professionally substantiated remaining useful life, the higher the annual depreciation allowance. This can reduce your tax burden and improve your cash flow.
Our reports are prepared by certified expert appraisers (DIN EN ISO/IEC 17024) and are clearly documented and fully traceable – providing a reliable basis for tax-related use.
Tax savings directly affect your net return. Especially for older properties or buildings with renovation requirements, a valuation report may prove worthwhile depending on the individual case.
100+ professionally substantiated valuation reports in the past 3 years
| 1.33% |
| 0.86% |
| 0.50% |
| 0.22% |
| 1993 | 1.33% | 0.86% | 0.50% | 0.22% | 0.00% |
|---|
| 1998 | 0.86% | 0.50% | 0.22% | 0.00% | -0.18% |
|---|
| 2003 | 0.50% | 0.22% | 0.00% | -0.18% | -0.33% |
|---|
