Living in a listed building

Living in a listed building

In Germany there are about one million buildings under listed buildings . A large part of them are residential properties: half-timbered houses in villages, pre- and post-war bungalows, country houses from the famous Jugendstil epoch, Gründerzeit blocks in metropolises and former factory buildings converted into lofts. Architectural monuments have a very special charm and therefore more and more popular. However, they are not the best for anyone, because the cost of entertainment and refurbishment is more expensive than for ordinary homes. That is precisely why the state offers support to the owners of these properties, both those for whom the monument is an investment and for those who want to live in it. What are architectural monuments? Architectural monuments are buildings that are classified as

cultural monument

due to their historical, urban or artistic significance. The monument law is located in the federal states. While the definition is very clear and follows the legislation of the federal states, it is more difficult for the building structure worth preserving. The municipality decides whether a property is part of the locally sustainable building substance . For interested people, this topic is less interesting. If such an architectural monument has caught your eye, you can buy it with a realtor for monuments and move in after a possible renovation. However, there are some rules to keep in mind before purchasing. The renovation of a monument is about restoring the building's original historic condition. Here, the older the architectural monument, the more elaborate is the


. Many parts may need to be faithfully restored, including, for example, decorative elements and figures of the facades. This task is not only costly, but also requires trained professionals with years of experience. Fortunately, the redevelopment also benefits owners of a historic monument. Tax Benefits Through Remediation Monument owners can deduct a variety of works on their building from the tax. More specifically, they can write off all conservation measures on their property in the income tax, including works that make the cultural monument ever habitable or usable. Up to

90 percent

of monument-related costs, monument owners can deduct income tax: nine percent per year, for a total of ten years. The only requirement is that you live in the property yourself and coordinate all work with the competent monument protection authority prior to the start of the renovation. Important : For all tax benefits, all work must be approved in advance. Without these, the tax benefits will no longer apply because the

certificate , which the monument owner has to present to the tax office, is not shown. Even worse, those who rebuild or rehabilitate without permission may be subject to a lawsuit for illegal construction. Landlord Depreciation Landlords who own the memorial but do not live in it but rent it have different tax deductions. Over a period of 12 years, monument owners can write off the renovation effort at

100 percent

: eight years with nine percent each and seven percent for the last four years. Again, only the works that have been approved by the monument authority are deductible. Attention : Depreciation is, of course, only valid for investors who have purchased a property in need of renovation. Anyone who buys the monument completely refurbished can not benefit from tax depreciation.

For landlords

, the entire effort can well be worthwhile. You could, for example, buy a three-family house and make it up. One apartment is used by the owners themselves, the other two are rented. So the financial burden is less strong. Artikelbild: © Avella / Shutterstock