> For the complete documentation index, see [llms.txt](https://help.immodio.app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://help.immodio.app/en/anleitung/einnahmen-und-ausgaben/buchhaltung-erweiterung/10065000-geldbeschaffungskosten-z-b-schaetz-notar-und-grundbuchgebuehren.md). # Financing costs (e.g. valuation, notary and land registry fees) Help on the Immodio entry item Costs of obtaining finance (for example valuation, notary and land registry fees).
Use this category for **costs arising directly from your obtaining or securing a loan to finance a let property**. ### What are costs of obtaining finance? Costs of obtaining finance are expenditure arising not for acquiring the property itself but **for obtaining or securing the borrowed capital taken out for it**. Typical examples can be: * notary costs for creating a land charge, * land registry costs for registering a land charge, * valuation costs directly connected with the financing, * fees for creating or changing a loan security, * certain costs of arranging the loan or the financing, * other costs caused directly by obtaining the credit. For landlords these costs are in principle income-related expenditure, as far as the underlying loan actually serves to generate income from letting and leasing. Section 9 EStG covers debt interest and other expenditure in particular, as far as it is economically connected with the type of income concerned. ### The typical case: a land charge for a property loan You buy an apartment which is then let. To finance it you take out a loan of €250,000 from a bank. The bank requires the registration of a land charge as security. The following arise for this, for example: * **notary costs for creating the land charge: €700** * **land registry costs for registering the land charge: €400** Total: **€1,100** Where the loan serves the let apartment entirely, these costs are in principle **costs of obtaining finance for the letting**. The Federal Ministry of Finance expressly makes clear that the pro rata notary and land registry costs for securing the loan are immediately deductible as income-related expenditure in the amount actually paid. In Immodio you use this category for that: **"Costs of obtaining finance (for example valuation, notary and land registry fees)"** ### The most important difference: purchase costs or financing costs? For tax purposes, notary and land registry costs can be two completely different things. What is decisive is **not who issued the invoice** but **what the specific fee arose for**. #### The costs of buying the property For example: * notarisation of the land purchase agreement, * the transfer of ownership in the land register, * the conveyance and corresponding acquisition transactions, * other notary or land registry costs directly attributable to acquiring the land. This expenditure is in principle part of the property's **incidental acquisition costs**. Section 255 of the German Commercial Code expressly counts incidental costs as acquisition costs. The Federal Ministry of Finance also names notary costs and land registry fees as typical incidental acquisition costs, as far as they arise because of acquiring the land. These costs do **not** belong in the category "costs of obtaining finance". #### The costs of the financing For example: * notarisation or creation of a land charge, * registration of the land charge in the land register, * a financing report or valuation for the bank, * other fees caused directly by securing the credit. This expenditure does not concern acquiring the property but **obtaining and securing the loan**. With corresponding financing of a letting it can in principle be taken into account immediately as income-related expenditure. ### Example: a notary's invoice contains both Several fees arise when buying a let apartment. Suppose the documents show, in simplified terms: **€1,500 – notarisation and handling of the purchase agreement** **€600 – creating the land charge for the bank loan** All €2,100 may then not simply be entered as costs of obtaining finance. The **€1,500 of purchase agreement costs** is in principle part of the incidental acquisition costs. The **€600 for securing the loan** is in principle part of the immediately deductible costs of obtaining finance. That is precisely why it makes sense to split notary and land registry statements for a property purchase according to the specific purpose of each fee. ### Land registry costs also have to be considered separately The fact that an invoice or statement of costs says "land register" is not sufficient to choose this category. #### The transfer of ownership The land registry office registers you as the new owner after the purchase. → in principle **acquisition costs** #### Registering the land charge The land registry office registers a land charge in favour of the financing bank. → in principle **costs of obtaining finance** The German Court and Notary Costs Act correspondingly distinguishes between registering the owner and registering encumbrances such as mortgages or land charges. ### Refinancing and follow-up financing Where a loan originally taken out to finance a let property is replaced by a new loan, the interest on the refinancing loan can also still be income-related expenditure where the necessary connection with the letting is preserved. For financing costs it follows that where costs for a necessary loan security arise again in the course of follow-up financing, for example, an attribution to the financing of the letting can likewise come into consideration. What remains decisive is the specific connection with the let property. ### Enter debt interest separately The ordinary running loan interest likewise does not belong in this category. Immodio has a separate category for it: **"Debt interest, interest for a bank loan, loan or credit"** Costs of obtaining finance, by contrast, are the additional costs arising around obtaining or securing the loan. In simplified terms: * **loan interest →** debt interest * **creating a land charge →** costs of obtaining finance (for example valuation, notary and land registry fees) * **registering the land charge in the land register →** costs of obtaining finance (for example valuation, notary and land registry fees) * **a valuation for granting the loan →** costs of obtaining finance (for example valuation, notary and land registry fees) ### Costs of obtaining finance can arise before the letting begins Financing costs frequently arise as early as the purchase, that is before the first tenant has moved in. That does not automatically prevent a deduction of income-related expenditure. Debt interest and the associated financing expenditure can in principle also be taken into account as **anticipated income-related expenditure** where there is already a sufficiently specific economic connection with the later income from letting and leasing. For this the Federal Fiscal Court looks at the objective connection and the actual use of the financing for letting purposes. The most frequent case is buying a property intended for letting from the outset. ### Assignment in Immodio For the assignment select **"Property"** and then the property whose financing the costs of obtaining finance concern. ### Do not enter here Do **not** use this category in particular for: * notary costs of the property purchase agreement, * land registry costs of the transfer of ownership, * real estate transfer tax, * estate agent costs for acquiring the property, * other incidental acquisition costs of the property, * running loan interest, * loan repayments, * the costs of a loan that does not serve the letting, ### Which documents should you keep? Keep in particular: * the loan agreement, * the bank's financing commitment, * the notary's invoice, * the statement of land registry costs, * the deed creating the land charge, * evidence of the registration of the land charge, * the invoice for a financing valuation or appraisal, * proof of payment, * documents on the use of the loan funds, * the split between the let and owner-occupied parts, where applicable, * with refinancing, documents on the previous and the new loan. With notary and land registry costs it is particularly important that it remains comprehensible **which part concerns the acquisition and which part the financing**. Only the financing part belongs in this category.