REDUCE YOUR INVESTMENT COSTS FASTER
DISCOVER THE TAX BENEFITS OF AFA*
You can secure attractive tax benefits through declining depreciation for wear and tear (known in Germany as AfA). The new German Growth Opportunities Act has entered legislation and includes the introduction of declining AfA for new residential properties of 5%. We can demonstrate how this benefits you: the new taxation method makes a larger amount than was previously possible tax-deductible for investors in new residential properties and apartments therein.
How does it work?
In the first year, you as a buyer can already claim 5% of the investment costs attributable to the building share (pro rata, if applicable) for tax purposes. In the coming years, depreciation of 5% of the respective ‘residual book value’ of the investment costs attributable to the building share will be applied. For investors, this not only means a faster reduction in investment costs, but also maximisation of their returns.
Your direct comparison: declining and linear depreciation
| Declining depreciation | Linear depreciation | |||
| Year | AfA (%) | AfA amount | AfA (%) | AfA amount |
| 2026 | 5% | 30.000 € | 3% | 18.000 € |
| 2027 | 5% | 28.500 € | 3% | 18.000 € |
| 2028 | 5% | 27.075 € | 3% | 18.000 € |
MAKE TAX SAVINGS WITH DISCOUNT POINTS
OPTIMISE YOUR FINANCING
Are you looking for a clever way to improve your financial situation? Then discount points are just what you need. They are a form of pre-paid interest to the loan provider, which is immediately included in the loan repayment. For example, if you take out a loan for €420,000, but only receive €380,000 from the bank, the discount points total €40,000.
| Without discount points | With €40,000 discount points (9.5%) | |
| Purchase price | 500.000 € | 500.000 € |
| Loan amount | 400.000 € | 420.000 € |
| Amount paid | 400.000 € | 380.000 € |
| Interest rate | 3,89% | 2,68% |
| Monthly instalment | 1.630 € | 1.288 € |
| Equity incl. ancillary costs | 142.500 € | 162.500 € |
Reduced monthly instalments and tax benefits
This advance interest payment can pay off because it reduces the nominal interest rate of the loan. This can lead to your monthly instalments being as much as several hundred euros lower than without the discount points. Investors in particular can benefit from this, as the amount can be tax-deductible if the property is rented out to third parties or used commercially.
Exclusive offers for PANDION customers
Our cooperation with our financing partner Hüttig & Rompf allows us to provide our customers with exclusive offers for property financing with discount points. We have established a network with ten partner banks, who offer you a discount of up to 10%.
Subject to change
PANDION PROJECTS
We create individual residential buildings with unique architecture and high-quality interior design. Find apartments for your own use, as a retirement provision or as a stable investment. The overview of our properties currently on offer is sure to have what you are looking for. As your partner for living spaces, we are happy to answer your questions and provide you with further information at any time.
