> 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/10082100-kauf-von-wohnbauten-gebaeude-zu-wohnzwecken-eigene-grundstuecke.md).

# Purchase of residential buildings (own land)

Help on the Immodio entry item Purchase of residential buildings, buildings for residential purposes (own land).

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Use this category for the **acquisition price attributable to a residential building or the production costs of a residential building on your own land that are subject to capitalisation**.

The category concerns exclusively the **building share**. The land is recorded separately.

Typical cases of application are:

* the building share when buying a let single-family house,
* the building share when buying an apartment building,
* the building share when buying a freehold apartment,
* the production costs of a newly erected let residential building on land you already own,
* the final building value of a completed new build.

#### This category is the building share

Where you buy land that is already developed, for tax purposes you regularly acquire at least two components:

* **the land**
* **the building**

The total purchase price may therefore not be entered in this category in full.

* The **land share** is entered in the category: **"**[**Purchase of land**](/en/anleitung/einnahmen-und-ausgaben/buchhaltung-erweiterung/10081800-kauf-von-grundstuecken.md)**"**.
* The **residential building share** is entered in the category **"**[**Purchase of residential buildings, buildings for residential purposes (own land)**](/en/anleitung/einnahmen-und-ausgaben/buchhaltung-erweiterung/10082100-kauf-von-wohnbauten-gebaeude-zu-wohnzwecken-eigene-grundstuecke.md)**"**.

This separation is necessarily relevant for tax, because the building can be taken into account through depreciation while land cannot be depreciated.

#### Example: buying an apartment building

You buy a let apartment building for: **€500,000**

The appropriate split of the purchase price gives:

* **the land: €100,000 = 20%**
* **the residential building: €400,000 = 80%**

You then enter the **€100,000** for the land share in the category **"**[**Purchase of land**](/en/anleitung/einnahmen-und-ausgaben/buchhaltung-erweiterung/10081800-kauf-von-grundstuecken.md)**"** and the **€400,000** for the residential building share in the category **"**[**Purchase of residential buildings, buildings for residential purposes (own land)**](/en/anleitung/einnahmen-und-ausgaben/buchhaltung-erweiterung/10082100-kauf-von-wohnbauten-gebaeude-zu-wohnzwecken-eigene-grundstuecke.md)**"**

{% hint style="info" %}
The €100,000 for the land is not depreciated. The €400,000 for the residential building, by contrast, in principle forms the starting basis for the building depreciation.
{% endhint %}

#### Splitting the purchase price with developed land

{% hint style="info" %}
For splitting a total purchase price, the Federal Ministry of Finance currently provides the **working aid for splitting the purchase price as at March 2026**. You can find it [**here**](https://www.bundesfinanzministerium.de/Datenportal/Daten/frei-nutzbare-produkte/Anwendungen/Kaufpreisaufteilung-Grundstuecke/Kaufpreisaufteilung-Grundstuecke.html).
{% endhint %}

The split is in principle made according to the ratio of the market or partial values and not by a simple residual value method.

You should keep this split of the purchase price permanently together with your acquisition documents, because it forms the basis for the later building depreciation and numerous other incidental acquisition costs.

#### Example: buying a freehold apartment

You buy a let freehold apartment for **€300,000**

The appropriate split of the purchase price gives:

* **the land: €45,000 = 15%**
* **the residential building: €255,000 = 85%**

You then enter the **€45,000** attributable to the land share in the category **"**[**Purchase of land**](/en/anleitung/einnahmen-und-ausgaben/buchhaltung-erweiterung/10081800-kauf-von-grundstuecken.md)**"** and the **€255,000** attributable to the residential building share in the category **"**[**Purchase of residential buildings, buildings for residential purposes (own land)**](/en/anleitung/einnahmen-und-ausgaben/buchhaltung-erweiterung/10082100-kauf-von-wohnbauten-gebaeude-zu-wohnzwecken-eigene-grundstuecke.md)**".**

{% hint style="info" %}
With a freehold apartment too, you acquire a share in the land with the apartment ownership. The whole purchase price may therefore not automatically be attributed to the depreciable building.
{% endhint %}

#### The connection with real estate transfer tax

The same split continues with the **real estate transfer tax** already described.

In our example:

* **20% the land**
* **80% the residential building**

the general real estate transfer tax is also split accordingly.

Where the real estate transfer tax is **€30,000**, for example, the following are attributable:

* **€6,000 to the land** and are entered in the category **"**[**Real estate transfer tax, purchase of developed land**](/en/anleitung/einnahmen-und-ausgaben/buchhaltung-erweiterung/10071900-grunderwerbsteuer-kauf-bebauter-grundstuecke.md)**"**
* and **€24,000 to the residential building** and are entered in the category **"**[**Real estate transfer tax, purchase of residential buildings, buildings for residential purposes (own land)"**](/en/anleitung/einnahmen-und-ausgaben/buchhaltung-erweiterung/10072200-grunderwerbsteuer-kauf-wohnbauten-gebaeude-zu-wohnzwecken-eigene-grundstuecke.md).

Real estate transfer tax is in principle part of the incidental acquisition costs; under Section 255 of the German Commercial Code, incidental acquisition costs are part of the acquisition costs of the asset acquired.

#### The same split ratio becomes important for the other incidental purchase costs

The land/building share plays a part not only in this purchase price entry. You encounter exactly the same logic with several Immodio categories.

Where the purchase price is attributable, for example:

* **20% to the land** and
* **80% to the residential building**

general incidental acquisition costs in principle also have to be split in accordance with that economic attribution, as far as they cannot be attributed directly and exclusively to one component.

**Besides the property tax category shown above, that also concerns the categories:**

**Land registry costs**

* "[Land register, land charge, conveyance priority notice, checking a right of first refusal, purchase of developed land](/en/anleitung/einnahmen-und-ausgaben/buchhaltung-erweiterung/10071500-grundbuch-grundpfand-auflassungsvormerkung-pruefung-vorkaufsrecht-kauf-bebaute.md)"
* "[Land register, land charge, conveyance priority notice, checking a right of first refusal, purchase of residential buildings, buildings for residential purposes (own land)](/en/anleitung/einnahmen-und-ausgaben/buchhaltung-erweiterung/10071800-grundbuch-grundpfand-auflassungsvormerkung-pruefung-vorkaufsrecht-kauf-wohnbau.md)"

**Estate agent costs**

* "[Estate agent share, purchase of developed land](/en/anleitung/einnahmen-und-ausgaben/buchhaltung-erweiterung/10088500-makleranteil-kauf-bebauter-grundstuecke.md)"
* "[Estate agent share, purchase of residential buildings, buildings for residential purposes (own land)](/en/anleitung/einnahmen-und-ausgaben/buchhaltung-erweiterung/10088700-makleranteil-kauf-wohnbauten-gebaeude-zu-wohnzwecken-eigene-grundstuecke.md)"

**and the notary share categories**

* "[Notary share, garages](/en/anleitung/einnahmen-und-ausgaben/buchhaltung-erweiterung/10095300-notaranteil-garagen.md)"
* "[Notary share, land](/en/anleitung/einnahmen-und-ausgaben/buchhaltung-erweiterung/10095400-notaranteil-grundstuecke.md)"
* "[Notary share, residential buildings, buildings for residential purposes (own land)](/en/anleitung/einnahmen-und-ausgaben/buchhaltung-erweiterung/10095600-notaranteil-wohnbauten-gebaeude-zu-wohnzwecken-eigene-grundstuecke.md)"

#### The distinction from "Purchase of land"

When buying an existing residential building, the two categories form a pair:

* The costs for the land share are entered in the category "[Purchase of land](/en/anleitung/einnahmen-und-ausgaben/buchhaltung-erweiterung/10081800-kauf-von-grundstuecken.md)"
* The costs for the residential building share are entered in the category **"**[**Purchase of residential buildings, buildings for residential purposes (own land)**](/en/anleitung/einnahmen-und-ausgaben/buchhaltung-erweiterung/10082100-kauf-von-wohnbauten-gebaeude-zu-wohnzwecken-eigene-grundstuecke.md)**"**.

#### The distinction from "Purchase of undeveloped land"

Where, on the other hand, you first buy **only undeveloped land**, use the category **"**[**Purchase of undeveloped land**](/en/anleitung/einnahmen-und-ausgaben/buchhaltung-erweiterung/10082000-kauf-von-unbebauten-grundstuecken.md)**".**

#### Example: buying the land first, building later

In 2026 you buy undeveloped land for: **€200,000**

You then enter this **€200,000** in the category **"**[**Purchase of undeveloped land**](/en/anleitung/einnahmen-und-ausgaben/buchhaltung-erweiterung/10082000-kauf-von-unbebauten-grundstuecken.md)**"**

A year later you erect a let apartment building.

The production costs: **€600,000**

This **€600,000** then belongs to the residential building and is entered in the corresponding category for the residential building, "[Purchase of residential buildings, buildings for residential purposes (own land)](/en/anleitung/einnahmen-und-ausgaben/buchhaltung-erweiterung/10082100-kauf-von-wohnbauten-gebaeude-zu-wohnzwecken-eigene-grundstuecke.md)". The original **€200,000** for the land remains land.

#### The distinction from "Structures and buildings on the owner's own land or on rights equivalent to land"

The existing category:

**"Structures and buildings on the owner's own land or on rights equivalent to land"**

is worded more generally for different types of building, such as:

* **commercial buildings (for example a shop unit, workshop, practice),**
* **mixed-use buildings with commercial space,**
* **other structures,**
* **but also residential buildings**.

For a building **let for residential purposes**, the more specific residential building category should therefore be used. Using the category "[Structures and buildings on the owner's own land or on rights equivalent to land](/en/anleitung/einnahmen-und-ausgaben/buchhaltung-erweiterung/10020500-bauten-und-gebaeude-auf-eigenen-grundstuecken-oder-grundstuecksgleichen-rechte.md)" for residential buildings is not professionally wrong either, however.

{% hint style="warning" %}
With a building used partly for residential and partly for other purposes, a split between the two categories can be necessary.
{% endhint %}

#### The connection with "Purchase of garages (own land)"

Garages belonging to a residential building on your own land are recorded separately in the categories provided for **garages**.

#### Example: a house and a garage are bought together

You buy a residential building including a garage.

The total purchase price is split appropriately into:

* **the land**
* **the residential building**

and, where applicable, a **garage share** to be recorded separately.

You then enter

* **the land** in the category **"**[**Purchase of land**](/en/anleitung/einnahmen-und-ausgaben/buchhaltung-erweiterung/10081800-kauf-von-grundstuecken.md)**"**
* **the residential building** in the category **"**[**Purchase of residential buildings, buildings for residential purposes (own land)**](/en/anleitung/einnahmen-und-ausgaben/buchhaltung-erweiterung/10082100-kauf-von-wohnbauten-gebaeude-zu-wohnzwecken-eigene-grundstuecke.md)**"** and
* **the garage(s)** to be recorded separately in the category **"**[**Purchase of garages (own land)**](/en/anleitung/einnahmen-und-ausgaben/buchhaltung-erweiterung/10081700-kauf-von-garagen-eigene-grundstuecke.md)**"**

#### The distinction from repairs and modernisation subject to capitalisation

The category: **"**[**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)**"** is likewise connected with this category.

Where a residential building that already exists is renovated after the acquisition and the costs have to be capitalised for tax, they ultimately increase the acquisition or production costs of the building.

That can occur in particular with:

* genuine production costs,
* extensions,
* substantial improvements,
* production costs close to acquisition.

The Federal Ministry of Finance describes the acquisition costs of a building including the costs of establishing operational readiness and the distinction from production costs and maintenance expenditure in detail.

In Immodio such subsequent measures have to be entered in the category provided for them, "[**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)**"**, and not again as the building's purchase price.

#### Straight-line building depreciation

Under the current statutory rule, straight-line building depreciation is in principle:

**3% per year** where the building was completed after 31 December 2022,

**2% per year** where it was completed after 31 December 1924 and before 1 January 2023,

**2.5% per year** where it was completed before 1 January 1925.

What matters here is the **date the building was completed**, not the year in which you buy the older building.

#### Example: an older building bought in 2026

In 2026 you buy an apartment building completed in 1990.

The building share is: **€400,000**

The building is not depreciated on a straight-line basis at 3% merely because you bought it in 2026.

For normal straight-line building depreciation it in principle falls into the group of buildings completed after 1924 and before 2023 and therefore in principle under the **2% rate**.

#### A special feature with new residential buildings: declining balance depreciation

For certain new residential buildings there is currently also the option of **declining balance building depreciation of 5% of the residual value**.

It can be relevant for residential buildings, among other things, where production began after **30 September 2023 and before 1 October 2029**. Corresponding conditions as to timing apply to acquisitions; the new building also has to be acquired by the end of the year of completion.

Whether straight-line or declining balance depreciation is more favourable and permissible should be checked on the basis of the specific new build.

#### Special depreciation for new rental apartments

With new rental apartments the special depreciation under **Section 7b EStG** can also come into consideration.

For the new builds currently eligible, the following are necessary, among other things:

* a building application or building notification after 31 December 2022 and before 1 October 2029,
* compliance with the statutory upper limit on construction costs,
* in this funding period, a building meeting **efficiency house 40 with a sustainability class** and the corresponding quality seal,
* letting for consideration for residential purposes over the prescribed period

.

The special depreciation can in principle be up to **5% per year in the year of acquisition or production and in the following three years**.

This special depreciation does not, however, change the fact that the acquisition or production costs first have to be attributed correctly to the residential building.

#### Which documents should you keep?

Keep in particular:

* the notarised purchase agreement,
* the split of the purchase price between the land and the building,
* the current Federal Ministry of Finance split of the purchase price or the valuation applied,
* the building contract and developer contract for new builds,
* construction and tradesmen's invoices,
* architects' and planning costs,
* proof of payments and instalments,
* the date of completion,
* the date of the building application, building notification or start of construction where new build depreciation rules are relevant,
* evidence of real estate transfer tax,
* land registry, notary and estate agent costs,
* for Section 7b, QNG and efficiency house certificates where applicable.

The **date of completion** in particular should be documented permanently, because the normal building depreciation and possibly further depreciation rules for new builds depend on it.