Author: Deniz Kutlu

The German residential property market remains under pressure: for years, too few homes have been built, particularly in urban areas. At the same time, construction costs, financing costs, and regulatory requirements continue to rise. At first glance, purchasing real estate may therefore appear less attractive to many private investors.

However, newly built properties still offer compelling opportunities—especially when government subsidies and tax-optimization strategies are used effectively.

However, besides this common structure, there is another option that is becoming relevant again for private buy-to-let properties: the Disagio, also known as discount points, damnum, or discount.

Whether it’s international DJs at weddings, foreign technology companies for conferences or licence fees to franchisors abroad – many hotels and restaurants are now part of international service and contract structures. What many people don’t know is that this can lead to tax risks and potential payment obligations. The reason: Section 50a of the Income Tax Act (EStG).

The conditions for building new homes have become extremely difficult: rising material prices, high manufacturing costs and, most recently, massive increases in construction interest rates are putting a heavy strain on residential construction. Nevertheless, investing in rental housing can still be worthwhile – tax depreciation options play a key role here.