The Immowiser Guide

AfA (Absetzung fuer Abnutzung) lets you deduct the theoretical decline in value of the building portion from rental income, reducing taxable income each year. The standard rate for residential rental buildings in Germany is 3% per year (buildings with permit from 1 Jan 2023) or 2% for older stock - but rules change, so verify with your Steuerberater.

Source: section 7 EStG. Labelled A (statutory) in Immowiser.

Additional accelerated depreciation for qualifying new energy-efficient residential buildings (e.g. EH40 / QNG-certified), often modelled as extra deduction percentages in the first years. Requirements include: new build in the eligible construction window, energy certification (EH40 or QNG), cost and area caps, and first-rental timing rules. Caps and eligibility windows change - verify current law with your tax advisor.

Source: section 7b EStG. Labelled A in Immowiser.

Annual repayment as a percentage of the loan principal in a standard German annuity mortgage. Lower repayment = lower monthly payment but slower debt reduction and higher total interest cost. Higher repayment = faster principal paydown. Immowiser models both effects on cashflow and residual debt at your chosen holding horizon.

If renovation spending on an existing building exceeds 15% of the building's value within the first three years after acquisition, the tax treatment changes: those costs may be capitalized and depreciated over the remaining useful life rather than deducted immediately as Werbungskosten. This is a significant trap for buyers planning early refurbishment. Verify timing and scope with your Steuerberater before committing to work.

KfW (Kreditanstalt fuer Wiederaufbau) offers government-backed loan and grant programmes for energy-efficient new builds, renovations, and certain owner-occupier purchases. Key programmes relevant to Immowiser scenarios include KfW 124 (Wohngebaeude-Kredit), KfW 297/298, KfW 261, KfW 300, KfW 458, and KfW 455-B. Rates, caps, income limits, and eligibility windows change frequently - always check the current KfW programme sheets before applying.

German energy efficiency classes run from A+ (most efficient) through H (least efficient). Weaker classes typically imply higher operating costs, more retrofit pressure under current and upcoming regulations, and greater financing risk (banks increasingly factor in energy class). Immowiser shows retrofit cost hints and CO2 risk lines by class to help you see the true long-run cost of a lower-rated building before you buy.

For many private rental holdings in Germany, a sale after more than ten years of ownership can be exempt from capital gains tax (Spekulationssteuer) under section 23 EStG. The clock starts at the purchase deed date. There are important exceptions - including properties that were converted, used for other purposes, or held via company structures - so verify your specific situation with a tax advisor before planning any exit.

Private ownership (Privatvermoegen) follows personal income-tax logic: rental income at your marginal rate, AfA deducted, exit potentially tax-free after 10 years. VV-GmbH (Vermoegensverwaltende GmbH / holding company) follows corporate tax logic: lower flat tax on retained profits, but different exit treatment, additional administrative costs, and no access to the 10-year private exemption in the same way. Which structure is better depends on portfolio size, income level, exit horizon, and strategy. Immowiser includes a basic private vs GmbH comparison module for orientation. Seek qualified tax and legal advice before choosing a structure.

• A — Statute / official regulation: directly traceable to law, tax regulation, or official government publication (e.g. section 7 EStG, GrEStG, KfW programme sheets).
• B — Professional / expert interpretation: established professional practice, guidance documents, or widely accepted implementation of law.
• C — Community / market heuristics: common practice, rule-of-thumb benchmarks, or finance conventions. Review critically and replace with your own data where possible.

Immowiser uses your inputs and assumptions to generate a set of comparable outputs: gross and net yield, cashflow (monthly and annual), IRR, equity multiple, deal health signals, and sensitivity flags. It highlights fragile assumptions - inputs where small changes produce large outcome shifts. The model does not tell you whether to buy; it tells you what the math says given what you've assumed. Treat outputs as structured diligence support and verify key numbers with qualified advisors before committing capital.