> 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/10078400-instandhaltung-erhaltungsaufwand-sofort-als-abschreibung-abzugsfaehig.md). # Maintenance / upkeep expenses (immediately deductible as depreciation) Help on the Immodio entry item Maintenance / maintenance expenditure (immediately deductible as depreciation).
Use this category for **refurbishment, repair and modernisation costs on your rental property that are treated for tax as immediately deductible maintenance expenditure**. There is in principle maintenance expenditure where existing components of the building are **preserved, repaired or renewed in a contemporary form**, without a new building thereby arising, the building being extended or its use value being substantially increased compared with its original condition. In its circular of 26 January 2026 the Federal Ministry of Finance makes clear that expenditure on refurbishment and modernisation measures on buildings is regularly maintenance expenditure and therefore immediately deductible as income-related expenditure or business expenses. #### What is typical maintenance expenditure? Typical cases can be, for example: * repairing an existing roof, * replacing defective roof tiles, * repairing an existing heating system, * replacing a defective circulation pump, * repairing water or waste water pipes, * dealing with a burst pipe, * replacing existing windows with contemporary windows, * repairing roller shutters, * painting and wallpapering work, * replacing damaged floor coverings, * repairing an existing electrical installation, * repairs in the bathroom or kitchen, * dealing with damp damage, * ordinary renovation work between two tenancies. What is always decisive is the **overall situation for tax**. An individual invoice does not automatically carry the label "maintenance expenditure" merely because it says "repair" or "renovation" on it. Distinguishing it from acquisition costs, production costs and production costs close to acquisition is important. #### Renewing is not automatically producing An existing component of the building may certainly be replaced with a modern version without production costs automatically arising as a result. The Federal Ministry of Finance describes a measure as a contemporary renewal preserving the substance where the building is merely brought back into a proper condition or its original use value is restored in a contemporary form. Even technical improvements therefore do not necessarily lead to production costs. Replacing old windows or an old heating system, for example, is not subject to capitalisation merely because the new technology is more energy efficient. The Federal Ministry of Finance expressly makes clear that even a considerable reduction in energy consumption does not in itself mean a substantial improvement of the building. #### When does a measure not belong here? The distinction from the Immodio category is particularly important: **"**[**Maintenance, maintenance expenditure, tradesmen, repairs (subject to capitalisation, production costs close to acquisition)**](/en/anleitung/einnahmen-und-ausgaben/buchhaltung-erweiterung/10078600-instandhaltung-erhaltungsaufwand-handwerker-reparaturen-aktivierungspflichtig.md)**"** Costs that for tax purposes are: * acquisition costs, * production costs or * production costs close to acquisition in particular are not immediately deductible. #### Extensions are production costs There is an extension in particular where the usable area of the building is enlarged or new substance is added to the building creating additional possible uses. The Federal Ministry of Finance names, for example: * a new balcony, * a new terrace, * a new dormer, * an additional staircase for the first time, * a fireplace for the first time, * a sauna for the first time, * certain other newly added facilities. Even a minor extension can trigger production costs; there is no particular value threshold for this. Such costs do not belong in this category. #### A substantial improvement of the building Even without enlarging the area, production costs can arise where the measures **considerably increase** the building's use value compared with its original condition. With residential buildings a considerable raising of the standard in particular can be decisive. For this the Federal Ministry of Finance looks above all at the central areas: * the heating installation, * the sanitary installation, * the electrical installation, * windows. There can be a raising of the standard in particular where there is a considerable improvement to a higher level of fittings in at least three of these four areas. An ordinary modernisation to a contemporary standard does not, however, automatically mean such a substantial improvement. #### Particularly important: the 15% limit after buying a property Within the first three years after acquiring a building, landlords have to pay particular attention to the rule on **production costs close to acquisition**. Where refurbishment and modernisation measures are carried out within that period and the relevant expenditure **excluding VAT exceeds 15% of the acquisition costs of the building**, that expenditure in principle becomes production costs close to acquisition. It may then not be deducted immediately through this category. #### The 15% relates only to the building What is decisive are the **acquisition costs of the building**, not the whole purchase price including the land. Example: The total purchase price is **€500,000** of which, according to the split of the purchase price: **the land: €150,000** and **the building: €350,000** The 15% limit is: **€350,000 × 15% = €52,500** What matters are the relevant refurbishment and modernisation costs **excluding VAT**. Section 6 (1) no. 1a EStG expressly refers to the acquisition costs of the building and to expenditure excluding VAT. #### Several measures are added together The 15% limit is not assessed separately for each individual tradesman's invoice. Where within the first three years you refurbish, for example: the bathroom: **€15,000 net** the windows: **€18,000 net** the electrics: **€12,000 net** painting work: **€10,000 net** the relevant measures total: **€55,000 net** With a 15% limit of €52,500 that limit would be exceeded. {% hint style="info" %} Under the current view of the tax authorities, decorative repairs such as wallpapering and painting can in principle also be included in the assessment of production costs close to acquisition. {% endhint %} #### The three-year period does not begin with the invoice Under the current Federal Ministry of Finance circular, the three-year period is calculated **to the exact day from the transfer of economic ownership**, that is typically from the transfer of possession, risk, benefits and burdens. What is also decisive in principle is when the construction work was carried out. An invoice does not yet have to have been issued or paid by the end of the three-year period. #### Maintenance that is usual annually does not count towards the 15% limit Maintenance work that usually arises annually in particular is not to be included in the 15% assessment. The Federal Ministry of Finance names, for example: * the running maintenance of a heating system, * the running maintenance of a lift, * clearing blocked pipes, * removing limescale, * meter reading costs. This expenditure can therefore still be immediately deductible within the first three years too, where there is no other duty to capitalise. #### Damage arising only after the purchase Another important exception applies to damage that was neither present nor already latent at the time of acquisition and demonstrably arose only later, for example through the culpable conduct of a third party or a natural disaster. Under the Federal Ministry of Finance's view, the corresponding repair costs are in principle not part of the production costs close to acquisition. #### Below 15% does not automatically mean immediately deductible The 15% limit is **not a general licence**. Even where you stay below it, measures can still be acquisition or production costs, for example because: * the building is extended, * the use value is substantially increased or * an acquired building is only put into a condition ready for your planned use by the measure. #### Mixed-use buildings Where a building is partly let and partly used by the owner, the whole repair may not automatically be applied as income-related expenditure. A distinction is drawn between directly attributable expenditure, for example a renovation exclusively in a let apartment, and expenditure that has to be attributed proportionately, for example a roof repair on a mixed-use building. #### Do not enter here The following in particular do not belong in this category: acquisition or production costs subject to capitalisation, production costs close to acquisition, extensions, genuine raisings of the standard, new builds, owner-occupied shares of the property, the contribution to a WEG maintenance reserve and operating costs recovered from tenants.