Well-paid newcomers with a Blue Card or another residence permit — and a high marginal tax rate. Exactly the clientele that heritage depreciation (Denkmal-AfA) and QNG new builds are made for. Yet hardly anyone does this specifically for expats. This case runs as a buy to let mortgage — financed as an investment, not owner-occupied.
A high marginal tax rate turns heritage depreciation (Denkmal-AfA) and QNG new builds into a lever — financed as an investment, not owner-occupied. Few brokers set this up specifically for expats.
Three: a Denkmal-AfA period building (60–80% refurbishment share, maximum tax saving), a QNG new build (KfW 297/298: subsidised interest up to €150,000 per unit, no repayment grant), or §7b special depreciation (5% × 4 years for new rental flats at EH 40 with QNG certificate).
Yes — a temporary permit is a checkpoint, not a knock-out. The bank looks at the type of permit and its remaining term, at how long you have been employed in Germany, at proof of income and at the equity covering the purchase costs.
Some lenders formally require permanent residence; others go by credit standing, the property and its lettability. A refusal from the bank that pays your salary therefore says little about whether the purchase can be financed — it says something about that bank's credit policy. The second point is the property itself.
On a listed building undergoing refurbishment, §7i EStG writes off the refurbishment share at 9 % for eight years and 7 % for four. That is the full amount within twelve years, precisely while a relocation income is taxed at its highest. That is why a let property comes before a home of your own here.
Most advisers recommend that expats buy a home to live in. In a typical situation — a well-paid job, a temporary residence permit, a family not yet sure whether Germany is for good — a let buy-to-let property is often the better fit:
A refurbished period building in Leipzig, Dresden, Cologne, Wiesbaden or Berlin. 60–80 % refurbishment share. Maximum tax saving at a high marginal rate.
Climate-friendly new build with a QNG certificate. KfW 297/298 as a subsidised-interest loan of up to €150,000 per unit — no repayment grant. Low incidental costs, strong rental demand.
EStG: 5 % × 4 years special depreciation for newly built rental flats meeting EH 40 with the QNG certificate (construction costs max. €5,200/m², assessment base max. €4,000/m²).
A simplified illustrative example — not a binding calculation:
Assumptions (guide figures, individually different): Blue Card holder, gross salary €90,000, marginal tax rate 42 % incl. solidarity surcharge, very strong credit. Buy-to-let heritage property in Leipzig, purchase price €280,000, of which a 70 % refurbishment share = €196,000 assessment base.
Calculation (simplified):
Please check individually with a tax adviser. This is not tax or investment advice.
| Item | Amount |
|---|---|
| Purchase price | €175,000 |
| Refurbishment share | €80,000 |
| Equity | €40,000 |
| Bank loan | €215,000 |
| Residence status | Blue Card |
| Heritage AfA §7i | 100 % / 12 yrs |
| Cash flow after tax | positive from year 2 |
Model calculation, no guarantee.
| Item | Amount |
|---|---|
| Purchase price | €320,000 |
| Equity | €80,000 |
| KfW 298 | €150,000 / 0.91 % |
| Bank loan | €90,000 |
| Residence status | Blue Card |
| Total payment | ~€1,200 |
| Rental income | ~€1,300/month |
Model calculation, no guarantee.
Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.
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KfW 297/298 as a subsidised-interest loan of up to €150,000 per unit — no repayment grant.