Specialisation · listed-building depreciation

Financing listed buildings

The most tax-attractive investment in Germany — 100% depreciation on the refurbishment share over 12 years, combinable with KfW 261. But: not every bank can do this. I know the specialist banks.

Listed-building depreciation key facts

§7i EStG at a glance

100% depreciation on refurb share
12 yrs 8×9% + 4×7%
60–80% typ. refurbishment share
+ 2.5% straight-line on old-build share

Why financing a listed building requires specialist knowledge

Listed buildings are one of the most tax-attractive investments in Germany — but not every bank finances them. The reason: the valuation is more complicated (splitting purchase price/refurbishment), the payout is in tranches, and at the time of application the refurbishment exists only as a plan.

I work with banks that have listed-building financing as a standard — not as an exception. That makes the terms considerably better and the process smoother.

What makes a listed-building financing special

  • Splitting purchase price/refurbishment: the bank values both separately; the refurbishment share requires developer-compliant documentation
  • Tranche payout: the bank loan is paid out in parallel with the refurbishment progress — not in one sum
  • Lending value after completion: banks often calculate with the completion value, not just the acquisition cost
  • KfW combination: §7i + KfW 261 (energy refurbishment) combinable — up to €150,000 KfW plus a bank loan
  • Developer credit standing: the bank also checks the refurbishment developer
Locations

Listed-building hotspots in Germany

Saxony

Leipzig, Dresden

The largest listed-building market. Period stock with a 60–80% refurbishment share. Combinable with SAB funding.

NRW

Cologne, Düsseldorf

Up to 90% refurbishment share for high-value properties. NRW.BANK combinable.

Hesse

Wiesbaden, Frankfurt area

Period and Art-Nouveau buildings. Typically a 68% refurbishment share. WIBank Hessen combinable.

Bavaria

Nuremberg, Munich

The lowest transfer tax (3.5%). Nuremberg: 60–80% refurbishment share. LfA Bayern combinable.

Berlin

Prenzlauer Berg, Charlottenburg

High-value listed stock. Budget for 6% transfer tax. IBB funding combinable.

Saxony-Anhalt

Halle, Magdeburg

Low purchase prices, an attractive assessment base. IB Sachsen-Anhalt combinable.

Financing structure

How a listed-building financing is built

01

Find the property

Check the purchase-price split (old-build share / refurbishment), developer credit standing, and the listed-building certificate.

02

Select the bank

Filter from 500+ banks down to listed-building specialists. Terms, tranche model, payout logic.

03

Combine KfW

Apply for KfW 261 energy refurbishment (before the purchase contract!). Repayment subsidy up to €67,500.

04

Refurbishment + final acceptance

Tranche payout in parallel with build progress. The listed-building certificate is a prerequisite for the depreciation.

FAQ

Frequently asked questions

Exactly how high is the listed-building depreciation?
§7i EStG: 8 years × 9% + 4 years × 7% = 100% depreciation on the refurbishment share over 12 years. The old-build share runs in parallel at 2% or 2.5% straight-line over 40-50 years. In total a very high tax effect at a high marginal tax rate.
What is the difference between §7i and §7h?
§7i: listed under the monument-protection act — a classic listed building. §7h: a building in an urban redevelopment area — not a genuine listed status, but the same depreciation rate. Both are often referred to synonymously as “listed-building depreciation”, but they are legally different.
Can I combine listed-building and KfW?
Yes — listed-building depreciation (§7i EStG) and KfW 261 energy refurbishment are combinable. The KfW finances energy measures with up to €150,000 per residential unit and a repayment subsidy of up to 45% (=€67,500). That considerably increases the leverage of the listed property.

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