New construction and living package

Extension of the accelerated depreciation (AfA)

The option of accelerated depreciation for buildings, whereby triple depreciation can be applied in the first year and double depreciation in the second year, has been extended for a limited period. For residential buildings completed between 31.12.2023 and 1.1.2027, triple depreciation can now be claimed in the first three years. In contrast to the previous regulation, this also applies if the building is commissioned in the second half of the year. The requirement is that the residential building meets the "bronze building standard" of the current "clima active criteria catalog".

  
There is now also the option of accelerated depreciation in connection with refurbishment options. While certain production expenses (e.g. in connection with the Monument Protection Act) could already be depreciated at an accelerated rate over 15 years, this option is being extended to expenses incurred after 31.12.2023 and for which federal funding is paid out in accordance with Section 3 of the Environmental Support Act.

"With the construction and living package, the legislator has provided tax incentives that take into account the current tense situation on the real estate market, but also the need for sustainable investment in the real estate sector. Among other things, demands from our profession (extention of the period of the assessement of lost profit activities) were implemented and tax incentives for redensification were created, which I consider to be particularly important. Basically, the tax measures have the potential to have a targeted effect - provided that the administrative presentation of the application requirements is clarified from the outset. The Federal Ministry of Finance is called upon to act here. We will keep you up to date in this regard."

Florian Schmidl, Partner at Forvis Mazars

Eco surcharge

Since the eco-social tax reform, private individuals have been able to claim certain building investments as special expenses for tax purposes. For these renovation measures (thermal-energetic renovation and replacement of a fossil heating system with a climate-friendly heating system), landlords can now also claim 15% of the investment as a notional tax expense (eco-surcharge). The requirement is that the building is rented out for residential purposes. The eco-surcharge is available for the first two financial years after 31.12.2023.

    
Abolition of ancillary fees

The fee for registering ownership of a property and associated liens in the land register is temporarily suspended upon application under the following conditions:
 

• The building constructed or to be constructed on the property is used to satisfy an urgent housing need
• The exemption is only available for the registration of the lien if more than 90% of the underlying loan is used for the acquisition, construction or renovation of a subsidized home
• The legal transaction is concluded after 31.3.2024 and the application for entry in the land register is submitted in the period from 1.7.2024 to 30.6.2026.

As proof of an urgent need for housing, the main residence must be established at the new property and all residential rights at the previous main residence must be relinquished. In the case of a residence that is already ready for occupancy, the evidence must be provided within three months of handover, in the case of a residence to be built after completion, but in any case within 5 years of registration. If the right of ownership is relinquished within 5 years, the court fee must be paid retrospectively.
 

Promotional loan

In addition, it was decided to make funds available to the federal provinces with which loans of up to € 200,000 with a maximum interest rate of 1.5 % p.a. can be granted to natural persons for housing subsidies, but these are to be linked to anti-speculative measures.