Sonder-AfA (Sonder Absetzung für Abnutzung)
Enhanced depreciation for new construction and renovated properties
Sonder-AfA (Special Depreciation) is an enhanced tax benefit for newly constructed properties in Germany. It allows you to accelerate depreciation beyond the standard 2% AfA.
How It Works
When you buy a newly built property (Neubau), you can claim 5% annual depreciation for the first 4 years, in addition to the standard 2% AfA. This means you're deducting 7% per year instead of just 2%.
Real Example
New Construction Property:
- Building value: €400,000
Years 1-4 (with Sonder-AfA):
- Standard AfA (2%): €8,000/year
- Sonder-AfA (5%): €20,000/year
- Total deduction: €28,000/year
- Tax savings (42% bracket): €11,760/year
Total extra tax savings over 4 years: €46,880
Eligibility Requirements
- New construction only: Property must be newly built (Neubau)
- Construction completion: Application typically must be filed within specific timeframes
- Primary use: Must be used for rental purposes
Why This Matters
Sonder-AfA front-loads your tax benefits, giving you significantly more tax savings in the early years when you typically have the highest financing costs. This can turn a negative cashflow property into a positive one.
Related Terms
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.
New Construction(Neubau)
New construction (Neubau) refers to properties built recently. They qualify for Sonder-AfA tax benefits and typically have lower maintenance costs but higher purchase prices.
Tax Savings(Steuerersparnis)
Tax savings from real estate come from deducting property expenses (interest, depreciation, costs) from your taxable income, reducing the amount of income tax you pay.