Buying heritage properties in Hamburg

Heritage protection of properties in Eimsbüttel: Experience the fascination of Hamburg's history

In the district of Eimsbüttel alone, there are many hundreds of historical properties, some of which were built as early as the 19th century. A large portion of them is listed in the city of Hamburg's register of protected buildings and often, but not always, subject to heritage protection regulations. Besides churches, parks, boundary stones, and similar objects, the list includes historical residential properties, such as majestic Wilhelminian villas, classic single-family homes with red brick architecture, or multi-family houses from the turn of the last century. Purchasing such a representative property demonstrates a high level of style and sophistication while contributing to preserving an important part of Hamburg's cultural heritage. The Heritage Protection Act mandates that buyers of protected properties maintain the object, carry out necessary renovations, and preserve the property's original character. This undoubtedly involves a higher commitment in time and cost compared to a new building but can be worthwhile depending on the property's condition. The preservation requirements of heritage properties are also recognized by the tax authorities, which can offer you some tax-related benefits when purchasing a historic house, villa, or apartment in Hamburg Eimsbüttel. Let your Hamburg real estate agent at Engel & Völkers explain how you can benefit.

Buying a heritage property in Hamburg Eimsbüttel and saving on taxes

The type and extent of tax savings for buyers of heritage residential properties depend on their intended use. If you plan to personally reside in the house, city villa, or apartment, you can deduct 9% annually of the total renovation costs from your taxes over ten years (depreciation for wear and tear/AfA). Cumulatively over the entire period, you can save up to 90% of renovation costs—a significant advantage over non-protected existing buildings. Conversely, if the historic property is intended as an investment for rental purposes, it offers a triple economic potential for you: firstly, historic properties in Hamburg Eimsbüttel are highly popular for renting, allowing for substantial returns; secondly, as an investor, you can deduct not only 90% but 100% of the renovation costs from your taxes, although the total refund period extends by an additional two years; thirdly, investors can also claim 2% annually of the property's purchase price over 50 years (for buildings constructed after 1924) or 2.5% annually over 40 years (for those built before 1924). Thus, purchasing a heritage property proves a lucrative option, especially for landlords.

However, for both owner-occupiers and investors, the described tax benefits for renovation work only apply if you purchase the heritage property before the renovations begin. Otherwise, tax rebates are calculated on a pro-rata basis.

The KfW-Bank also offers attractive financing options for heritage residential properties if you wish to optimize the energy efficiency of the house, villa, or apartment—depending on the extent of the work, up to 100,000 euros is available.

Do you wish to finally realize the dream of living in a historic Hamburg property or are you looking for a profitable investment opportunity? At Engel & Völkers Hamburg, you will find exclusive purchase offers not only in Eimsbüttel but also in other attractive districts of the Hanseatic city. Our competent team of qualified real estate agents is always available for a free and non-binding consultation: Feel free to visit us in one of our real estate shops in Hamburg Eimsbüttel, Blankenese, Othmarschen, or in HafenCity! We look forward to hearing from you!