{"id":17005,"date":"2025-08-03T11:54:03","date_gmt":"2025-08-03T09:54:03","guid":{"rendered":"https:\/\/xoros-home.de\/?p=17005"},"modified":"2025-11-19T09:06:39","modified_gmt":"2025-11-19T08:06:39","slug":"investment-booster-2025-degressive-depreciation-for-office-furniture-germany","status":"publish","type":"post","link":"https:\/\/xoros-home.de\/en\/investitions-booster-2025-degressive-abschreibung-fuer-bueromoebel-deutschland\/","title":{"rendered":"Investment Booster 2025: Degressive depreciation for office furniture (Germany)"},"content":{"rendered":"
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Investment Booster 2025: Degressive depreciation for office furniture (Germany)<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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More liquidity through faster tax savings<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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In 2025, before the summer recess, the German federal government implemented the so-called investment booster. A key component of this is the reintroduction of declining balance depreciation (AfA) for movable assets \u2013 including office furniture such as telephone and meeting boxes. The idea behind this is that the increased depreciation options lead to a lower tax burden in the first few years after purchase, thereby increasing liquidity in the medium term.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Legal notice: No legal or tax advice<\/h5>\n<\/div>\n<\/div>\n

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.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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What is declining balance depreciation and why is it an investment booster?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Declining balance depreciation allows higher depreciation amounts to be claimed in the first few years after acquisition. Specifically, companies will in future be able to depreciate up to 30% of the (residual) book value per year \u2013 up to a maximum of three times the normal straight-line depreciation. This means that instead of depreciating smaller amounts on a straight-line basis over what is often a long useful life, the majority of the investment costs will have a prompt tax effect.<\/p>\n

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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.<\/p>\n

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.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Office furniture is normally depreciated on a straight-line basis over 13 years. With the \"Investment Booster\", more than 50% of the acquisition costs are already depreciated in the 3rd year and can therefore be claimed for tax purposes.<\/figcaption>\n\t\t\t\t\t\t\t\t\t\t<\/figure>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Example: Investment in telephone and meeting boxes<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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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 \u20ac10,000 net in such office furniture with a standard straight-line amortisation period of 13 years.<\/p>\n\n