> 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/10072300-grundsteuer-umgelegt-auf-mieter-1.md). # Rights equivalent to land (heritable building right, permanent residential right, undeveloped land) Help on the category Rights equivalent to land.
Use this category in particular for the **one-off acquisition and incidental acquisition costs of a right equivalent to land** acquired in connection with your letting. These can include in particular: * the purchase price or entry payment for a **heritable building right**, * acquiring a **permanent residential right**, * real estate transfer tax, * estate agent's commission, * notary costs, * court costs or land registry costs, * surveying costs, as far as these costs were **caused directly by acquiring the right concerned**. {% hint style="info" %} For the **heritable building right**, real estate transfer tax, estate agent's commission and notary and court fees in particular are part of the acquisition costs of the heritable building right. {% endhint %} #### **What is a right equivalent to land?** Rights equivalent to land are legally particularly strong rights over land that are **treated similarly to land** in essential areas. The most important example is the **heritable building right**. It confers the right to have a structure on or under someone else's land. The right is in principle transferable and heritable and is given its own heritable building right register. Another example is the **permanent residential right under Sections 31 et seq. of the Condominium Act**. It confers the right to live in or otherwise use a particular apartment to the exclusion of the landowner. Not every ordinary right of residence or other right of use is therefore automatically a permanent residential right within the meaning of this category. #### **Why is there a separate category for this?** This category serves to separate: 1. **one-off costs of acquiring the right** and 2. **running payments for using it**. That is important with the heritable building right in particular. **Example** You acquire an existing heritable building right. The following arise: * the purchase price for the right: **€40,000** * real estate transfer tax: **€2,400** * the notary and court: **€1,500** * the estate agent: **€2,000** These amounts are directly connected with **acquiring the heritable building right** and are in principle part of its acquisition costs. In addition you will pay annually in future: **€4,800 of ground rent** {% hint style="warning" %} This running ground rent does **not** belong in this category but is entered in the category **"Costs for ground rent, heritable building rights and long leases"**. {% endhint %} #### **Acquisition costs are not immediately income-related expenditure in full** For tax purposes the one-off acquisition costs of a heritable building right are in principle **not** deducted immediately in full like running ground rent. The Federal Fiscal Court treats the heritable building right as a depreciable asset. The acquisition costs of the heritable building right are in principle **to be depreciated on a straight-line basis over the term of the right**. **Example** You acquire a heritable building right with a remaining term of: **40 years** The acquisition costs of the heritable building right: **€40,000** With a straight-line spread over the remaining term this in principle gives: **€40,000 ÷ 40 years = €1,000 per year** {% hint style="info" %} The **€40,000** is therefore not simply written off in full as running income-related expenditure in the year of purchase. {% endhint %} #### **Example: notary and estate agent costs** You buy an existing heritable building right for: **€60,000** The following also arise: * notary costs: **€1,200** * court costs: **€600** * estate agent's commission: **€2,500** **Not** only the **€60,000** but in principle **also the incidental costs directly connected with the acquisition** are then part of the acquisition costs of the right. That gives a total of **€64,300, which you enter in the category** "Rights equivalent to land (heritable building right, permanent residential right, undeveloped land)". These costs are **not** treated like ordinary notary, estate agent or administration costs. #### **Examine a developed heritable building right particularly closely** Frequently it is not only an "empty" heritable building right that is acquired but a **heritable building right that is already developed**, for example a house on land subject to a heritable building right. It then has to be examined precisely **what the purchase price was actually paid for**. Where the acquisition of a developed heritable building right is concerned, the whole acquisition costs can be attributed to the **building** where it is demonstrable that a payment was made to the previous holder of the heritable building right for the building only and that only the running ground rent is assumed towards the landowner. **Example** You take over a house on land subject to a heritable building right. You demonstrably pay the previous holder of the heritable building right: **€300,000 exclusively for the building** You continue to pay the landowner merely the contractual ground rent. The purchase price should then **not** be entered in this category in full as acquiring the heritable building right; instead the share for the building is entered in the category "Structures and buildings on the owner's own land or on rights equivalent to land". With developed heritable building rights a distinction therefore has to be drawn in particular between: * buildings, * the heritable building right, * and the running ground rent . #### **The distinction from "Purchase of undeveloped land"** Although this category's name also contains **"undeveloped land"**, Immodio has its own category for the actual purchase price of ordinary undeveloped land: **"Purchase of undeveloped land".** The following therefore applies: * **the purchase price of ordinary undeveloped land** → **"Purchase of undeveloped land"** * **acquiring a heritable building right or other right equivalent to land and its directly attributable acquisition costs** → **"Rights equivalent to land (heritable building right, permanent residential right, undeveloped land)"** #### **Financing costs are not automatically part of the acquisition costs of the right** Not every notary or land registry invoice around the time of the purchase belongs in this category. What is decisive is **why the costs arose**. **Example** * notary costs for the agreement transferring the heritable building right: **€1,500** in principle belong in the category Rights equivalent to land (heritable building right, permanent residential right, undeveloped land)" * notary costs for creating a land charge for the financing, of **€800** for example, are financing costs and belong in the category **"Costs of obtaining finance (for example valuation, notary and land registry fees)"** The invoices should therefore if possible be separated according to their actual purpose. #### **Assignment in Immodio** With this category the assignment is to the **property**. Select the property to which the heritable building right, permanent residential right or other right equivalent to land acquired belongs. #### **Do not recover from the tenant** Acquiring a heritable building right, permanent residential right or comparable right concerns the **owner's asset or acquisition sphere**. Notary, court, estate agent or surveying costs for acquiring the right are likewise not running operating costs of the rental property. They do not arise from the tenants' intended use of the building and may therefore **not be recovered through the operating cost statement**. The **"Recoverable in the operating cost statement"** switch therefore has to stay **disabled**. #### **Which documents should you keep?** Keep in particular: * the **notarised acquisition or heritable building right agreement**, * the purchase price statement, * heritable building right register or land register documents, * the real estate transfer tax assessment, * notary and court cost invoices, * the estate agent's invoice, * surveying invoices, * proof of payment, * documents on the **remaining term of the heritable building right**, * with a developed heritable building right, documents on the split between the **building and the heritable building right**, * with permanent residential rights, the agreement on the content and term of the right, * and separate documents on financing costs and running ground rent. This keeps it comprehensible which amounts actually arose for acquiring the right equivalent to land and which costs instead concern the building, the financing or the running ground rent.