Germany: New guidelines for monument tax incentives and successful historic building restoration

The Verband für Bauen im Bestand (BiB) has released a new practical guide focused on the ‘Denkmal-AfA’, designed to help owners, architects, and developers navigate tax incentives for preserving historical monuments. The guide highlights increased depreciation options under German tax law, such as § 7i and § 7h EStG, to make the renovation of protected buildings more economically viable. A key requirement noted is that procedures for obtaining tax benefits must be initiated with the relevant monument authority before construction begins.

In a successful application of preservation efforts, the historic Pennig-Haus in Warburg is set to reopen following a three-million-euro restoration. Funded by the Warburg Monument Foundation under the Deutsche Stiftung Denkmalschutz (DSD), the project saved the building from demolition. The site will serve various community functions, including housing a tourist information center, a music school, and a community space for local initiatives.