How does an energy renovation of my property affect my taxes?
June 17, 2024 | 40,00 EUR | answered by Mia Pilz
Dear Mr./Mrs. Tax Advisor,
My name is Erika Becker and I own a property that needs to be energetically renovated. I am currently considering whether to proceed with the renovation and would like to know how this measure would affect my taxes.
The current state of my property is not energetically optimal. I suspect that high energy costs are incurred as a result, and environmental impact increases due to increased energy consumption. I care about the environment and want to contribute to climate protection. At the same time, I also want to take advantage of the financial benefits of an energetic renovation.
My question to you as a tax advisor is therefore: How does an energetic renovation of my property affect my taxes? Are there any tax benefits or funding opportunities that I can take advantage of? What tax advantages could I receive from renovating my property? What documents or evidence are needed to benefit from tax advantages?
I look forward to your expert advice and thank you in advance for your support.
Sincerely,
Erika Becker
Dear Mrs. Becker,
Thank you for your inquiry regarding the tax implications of an energy-efficient renovation of your property. It is commendable that you are considering both the environment and your financial benefits. I can assure you that an energy-efficient renovation is generally both ecologically and economically sensible.
First and foremost, I would like to inform you that there are various tax benefits and funding opportunities in Germany that you can take advantage of when renovating your property. One of the most well-known programs is the "Tax Reduction for Craftsmen Services," where you can deduct 20% of the labor costs for craftsmen services related to renovation, maintenance, and modernization measures from your tax liability. This tax reduction amounts to a maximum of 1,200 euros per year.
Furthermore, there are also funding programs from the government, such as the KfW program "Energy-Efficient Renovation," which offers low-interest loans or grants for energy-efficient renovation measures.
To benefit from tax advantages, it is important that you carefully keep all relevant documents and evidence. This includes invoices and receipts for the work done, building permits, energy certificates, as well as all relevant assessments and documents that document the energy-efficient renovation of your property.
In summary, an energy-efficient renovation of your property is not only ecologically sensible but can also offer you tax benefits and funding opportunities. I recommend that you carefully inform yourself about the various programs and options and seek professional assistance if necessary.
I hope that this information has been helpful to you and I am available for any further questions.
Sincerely,
Mia Pilz
