Investment Booster 2025: Degressive depreciation for office furniture (Germany)

More liquidity through faster tax savings

The German government implemented the so-called investment booster before the summer break. A central component is the reintroduction of declining balance depreciation for movable assets - and therefore also for office furniture such as telephone and meeting boxes. The idea behind this: The increased depreciation options lead to a lower tax burden in the first few years after acquisition and therefore increase liquidity in the medium term.

Legal notice: No legal or tax advice

The information provided on this website is for general information purposes only. It does not constitute legal or tax advice and cannot replace such advice.

What is declining balance depreciation and why is it an investment booster?

The declining balance method of depreciation makes it possible to claim higher depreciation amounts in the first few years after acquisition. Specifically, companies will be able to write off up to 30% per year in future - up to a maximum of three times the normal straight-line depreciation. This means that instead of writing off smaller amounts on a straight-line basis over an often long useful life, the majority of investment costs will be recognised for tax purposes in a timely manner.

This "turbo effect" significantly improves liquidity, as companies save more taxes in the year of investment and subsequent years, thus gaining financial leeway for further growth.

The declining balance method of depreciation has been adopted in Germany for a period of two and a half years and applies to all purchases and investments made between 1 July 2025 and 31 December 2027.

Example: Investment in telephone and meeting boxes

Phone boxes and meeting boxes are key pieces of equipment in modern offices for focussed conversations and productive meetings. Many companies are currently looking to upgrade here. Let's assume your company invests €10,000 net in such office furniture with a standard straight-line amortisation period of 13 years.

Linear: Annual depreciation of around €770 spread over 13 years.
Degressive: In the first year, you can depreciate up to 30% (maximum €2,310 = 3 x straight-line annual value); in subsequent years, the depreciation decreases with the residual value, but remains higher in the first five years than with straight-line depreciation.

As shown in the diagram above, this results in faster tax relief in the first few years, which increases cash flow and makes your investment more economically attractive.

Renting as an alternative

If you are interested in tax deductibility and have cash flow optimisation in mind, you should also consider the topic of renting: In this case, the liquidity advantage does not only arise through tax effects in the annual financial statements, but directly with the rental (monthly instalment vs. purchase price). Incidentally, the monthly rental fees can also be claimed as business expenses for tax purposes at 100%.

Feel free to contact us!

Whether you want to buy with an "investment booster", rent or lease, we will be happy to advise you on our extensive selection of telephone and meeting boxes: