Depreciation on real estate: What owners need to know in 2025
How to make the most of your property value for tax purposes in 2025 and avoid pitfalls—with the best tips for owners and investors.
Speed counts—even when it comes to real estate depreciation. 2025 brings fresh opportunities for owners to maximize the tax value of their property. But if you want real benefits, you need clear facts and speed in implementation. We show you how, as a property owner or investor, you can take advantage of every tax bracket in the new tax year, choose the perfect depreciation methods, and avoid typical mistakes. No theory, no excuses—just first-hand expert knowledge for your next deal.
Real estate depreciation will remain the most powerful tool for reducing tax burdens and increasing returns in 2025. For owners, the more precise the strategy, the greater the effect on net income. Modern models for linear and declining balance depreciation—especially for buildings completed after 2023—provide additional leverage. Those who plan cleverly can claim higher values more quickly and gain more liquidity faster. From decades-old properties to new investment properties: your real estate works for you tax-wise if you know how to adjust the parameters.
But the devil is in the details: What counts as a purchase? How far do modernizations go? How do you ensure the optimal useful life for tax purposes? Only those who act with the most up-to-date knowledge can avoid pitfalls and make sustainable use of depreciation. Supanz-Immobilien gives you the decisive edge: with precise valuation, transparent advice, and access to specialized tax experts. Take advantage of the opportunities in 2025—reduce complexity, maximize impact. If you would like to know more, please write or call us.
Tax advantages of real estate: How to get more out of it in 2025
Those who make quick decisions and provide clear figures will secure maximum tax benefits in 2025. Whether it's an existing apartment building, a completely renovated old apartment, or a new investment in Düsseldorf, every property offers tax leverage. The focus is on depreciation for buildings, modernization, and exterior renovations. Forward-thinking investors are examining whether declining balance or straight-line depreciation models are more cost-effective. For many, the upgrade is worthwhile: declining balance depreciation enables faster tax savings and improves your liquidity, especially in the early years.
Why should you rely on professional advice and accurate valuation in 2025? Tax regulations and market dynamics are changing, and tax conditions remain in flux. Those who invest or modernize now will benefit twice: tax advantages plus increased building value. Supanz-Immobilien knows the tricks to optimally present tax-relevant costs—from the initial property appraisal to the annual financial statements. Your advantage: more net income, more value, more predictability for your next decision. Want to know how to optimize your portfolio to the maximum? We look forward to your inquiry.
How real estate will be depreciated in 2025
in 2025, not all properties will be treated equally for tax purposes. The decisive factor is whether you own a residential building, a condominium, or a mixed-use property. For purely residential properties in your portfolio, linear depreciation in accordance with Section 7 (4) of the Income Tax Act (EStG) will usually remain the standard. Here, you depreciate a constant 2% of the acquisition or production costs over 50 years, year after year. For new-build properties completed from 2023 onwards, declining balance depreciation will apply in addition to the straight-line option. It starts at 5% per annum for the first four years and then decreases. This means that you get the tax benefit faster right at the beginning – ideal for investors focusing on liquidity and returns.
Commercial properties and mixed-use real estate are considered separately. In most cases, 3% per annum over 33 years applies here. Modernization or extensive renovation work may result in a new depreciation basis—the key factor here is a clear distinction between maintenance costs and construction costs. Important: Land itself is never deductible. Our tip: Always keep an eye on the type of use, year of construction, and modernization costs, and have your depreciation strategy reviewed regularly. This is the only way to ensure maximum benefits in 2025.
Pitfalls, opportunities, FAQs: What owners should check now
Real estate depreciation offers enormous tax potential in 2025 – provided you know your options and avoid costly mistakes. A common stumbling block is the timing of modernization work. Only when measures taken after purchase are classified as "maintenance expenses" can they be deducted directly. Otherwise, there is a risk of capitalization, which makes depreciation more time-consuming. You should also check whether your property is eligible for depreciation at all: there are no tax depreciation options for owner-occupied real estate. Only investors and landlords can benefit.
Clarity provides answers to important questions: What costs are included in the purchase price? Do I need to calculate a new depreciation basis after modernization? How are extraordinary events—such as energy-efficient renovations—assessed for tax purposes? Take advantage of all the opportunities in 2025: declining balance depreciation for new investments, adjustment of your depreciation after modernization, and professional valuation of your property. Supanz-Immobilien supports you with facts, precise analysis, and a strong network of tax professionals. Would you like to check your options or do you have a specific question? Then write or call us at any time.
