Tax depreciation (AfA) is a massive lever to minimize rental income taxes. Since buildings lose value over time, their purchase price (excluding land) can be written off annually. Choosing between private holding, a dedicated property GmbH (vvGmbH), or a Family Foundation shapes your wealth accumulation over a 30-year horizon.
1.Depreciation Rates and Remaining Useful Life
Standard linear depreciation varies from 2% to 3% based on the building age. However, a remaining useful life appraisal (Restnutzungsdauer-Gutachten) can compress the depreciation window (e.g., to 18 years, pushing the rate to 5.55%), yielding instant tax relief.
2.30-Year Compounding Comparison
Due to the low corporate tax rate of 15.825% compared to progressive private income tax (up to 42-45%), reinvesting rental profits inside a GmbH wrapper produces a massive tax-deferral compound effect.
Conclusion
Optimize your holding structure and maximize depreciation before acquisition. Use the PropAI Analyst vvGmbH and Tax Optimizer Rechner to model your portfolio.