Tax · Glossary

Denkmal-AfAHeritage depreciation

The accelerated depreciation on listed heritage buildings

4 min read·Updated December 2024

Denkmal-AfA is the most aggressive depreciation schedule in German tax law. On a listed (Denkmalschutz) building, the qualifying renovation costs can be written off at up to 9% per year for eight years, then 7% for four more.

How It Works

Two depreciation streams run in parallel. The regular AfA applies to the original building substance at 2% over fifty years. The Denkmal-AfA applies to the qualifying renovation costs (the Sanierungs-Anteil) at 9% per year for years 1 to 8, then 7% per year for years 9 to 12. After year twelve, the renovation costs are fully depreciated.

The Catch

  • The Bescheinigung from the Denkmalbehörde must certify the qualifying costs, granted in the right sequence
  • The math works best at high marginal tax rates (roughly 42%+) and over a 12-year-plus horizon
  • Exit liquidity is thinner and the building carries ongoing Denkmalschutz constraints

See the heritage strategy in full

Planning a purchase?

Buying in Germany adds roughly 7% to 12% on top of the purchase price.

Transfer tax

3.5% to 6.5% of the price, set by the state.

Notary & registry

About 1.5% to 2%, fixed by law (GNotKG).

Agent commission

Usually around 3.57% as the buyer's share.

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Denkmal-AfA (Heritage depreciation) | Financemate Glossary