Land Value (Bodenwert)
The non-depreciable portion of your property
Land value (Bodenwert) is the portion of your property's purchase price allocated to the land itself. Unlike building value, land cannot be depreciated because it doesn't "wear out."
Why Land Value Matters
For tax purposes, you must split your purchase price between:
- Building value: Depreciable via AfA (2% annually)
- Land value: Not depreciable, but appreciates over time
The higher your building percentage, the more you can deduct annually.
Determining Land Value: Bodenrichtwert
German municipalities publish official land values (Bodenrichtwerte) updated regularly. You can find these through:
- BORIS (Bodenrichtwert-Informationssystem): Online portals by state
- Local Gutachterausschuss: Assessment committees maintain records
- Notary contracts: Sometimes explicitly state land/building split
Real Example Calculation
€450,000 Property in Berlin:
- Purchase price:€450,000
- Land size:300 m²
- Bodenrichtwert (local rate):€300/m²
- Calculated land value:€90,000
- Building value (depreciable):€360,000
Result: 80% building / 20% land split
Location Affects the Split
- City centers: Land may be 30-40% of purchase price (Munich, Hamburg)
- Suburbs: Typically 15-25% land value
- Rural areas: Land can be just 10-15% of total price
- New construction: Usually 10-15% land (developers maximize building value)
Strategic Consideration
From a tax perspective, properties with lower land value percentages are more attractive because more of your purchase is depreciable. However, land typically appreciates faster than buildings, so there's a trade-off.
Related Terms
Building Value(Gebäudewert)
Building value (Gebäudewert) is the portion of the property purchase price allocated to the structure itself, excluding land. Only the building value can be depreciated with AfA.
AfA(Absetzung für Abnutzung)
AfA (Absetzung für Abnutzung) is the German term for depreciation on investment properties. It allows you to deduct 2% of the building value from your taxable income each year for 50 years.
Purchase Price(Kaufpreis)
The purchase price (Kaufpreis) is the agreed price for the property. This amount is split between building value (depreciable) and land value (not depreciable) for tax purposes.