• Listed properties are particularly attractive to investors due to their tax advantages.

• You can also benefit from tax benefits if you purchase a property in a redevelopment area.

• Not every listed property is equally suitable as a lucrative investment. We at MLP explain the differences.

Listed properties are historical buildings that should be preserved due to their structure, construction, history, or other important reasons for humanity. Listed properties are buildings that are deemed worth preserving by the heritage authority, and for which restoration is particularly worthwhile. 

Listed properties include buildings from all eras as well as special living concepts that represent a cultural asset due to historical events.

By purchasing a listed property, you are contributing to heritage preservation. The state rewards this with attractive tax benefits. These tax advantages also apply when purchasing a property in so-called redevelopment areas.

• Tax benefit through increased depreciation of the redevelopment/listed property
• Participation in the preservation of urban cultural heritage
• Owner-occupancy of the listed property is possible
• Selection of tenants and setting rental prices
• After completion, the property reaches the standard of a new building through core renovation

Listed properties offer special tax benefits to those with a high taxable income, making them a sensible investment. In addition to the tax advantages, the high resale value is another highlight for investors in listed properties. 

Listed properties have a good reputation among private investors. The reason for this is the tax advantages and subsidies, which is why they are often referred to as the "tax-saving model of listed properties." The following explanations clarify what this exactly means:

• The "Denkmal-AfA" (depreciation for listed properties) allows you to claim the renovation costs in your income tax return.
• As an investor, you can depreciate 9% of the renovation costs each year for eight years, and then 7% per year for the next four years (100% of the costs).
• Owner-occupiers can depreciate 9% of the renovation costs each year for ten years (90% of the costs).
• A listed property is not subject to capital gains tax. Your profits from a resale are always tax-free once the ten-year speculation period has expired (applies only to private individuals).
• Additional support through favorable KfW loans.

Other incentives for investing in listed properties include their unique character, high construction quality, and exceptional charm. By purchasing a listed property, you are investing in the preservation of cultural heritage and making an important contribution to heritage protection.

A plaque from listed properties does not automatically make a property a profitable investment. As with other real estate, it is important to check the conditions. 

This includes factors such as location, the condition of the building, the rental potential of the property, and the potential for value appreciation. If a developer is involved, it is important to ensure they have the necessary expertise and references.

Keep in mind that a listed property only offers full tax benefits as a long-term investment. You can only deduct the full renovation costs if you purchase the listed property before the work begins.

A major advantage of listed properties is the depreciation of renovation costs. The renovation share is typically higher in listed properties compared to other real estate: depending on the building's condition, the renovation share is usually between 55% and 80%. This is why the legislator has provided the option for "Denkmal-AfA" (depreciation for listed properties). 

The higher the renovation expenses for a listed property, the greater the deductible advertising costs for you as an investor. 

Good to know: The standard depreciation rate (AfA) for rented properties, which is between 2% and 2.5%, also applies to listed properties in addition to the Denkmal-AfA. 

The tax office not only supports the renovation of the building's exterior but also the fundamental renovation and modernization of the interior. When renting a listed property, you can claim the renovation costs for eight years at a rate of 9% each year and for another four years at 7% each year. Owner-occupiers, however, cannot claim the entire renovation costs but can deduct a total of 90%, spread over 10 years. 

With a listed or renovation property, you benefit not only from high tax advantages but also from the core renovation, which increases the material value and attractiveness for high-paying tenants. 

When purchasing listed properties as an investment, there are many factors to consider. Whether the investment is worthwhile and what to pay attention to is explained by our experienced MLP advisors. They will work with you to develop a tailored plan for your retirement savings and advise you on the various options. Build a secure financial future and schedule a personal meeting today. Your MLP advisor will assist you in finding the right property as an investment. Through our numerous cooperation partners, we have access to a wide selection of properties.