GmbH Depreciation in Germany 2026: AfA Rules, Immediate Write-offs and Tax Strategies

When a GmbH or UG buys a laptop, machinery, or office equipment, it usually can't deduct the full cost in the year of purchase. German tax law requires that higher-value assets be written off gradually over their useful life — a process called AfA (Absetzung für Abnutzung, or depreciation). Used strategically, depreciation is one of the most powerful tools for reducing your GmbH's tax burden.

What Is AfA (Depreciation) in a GmbH?

Any asset with a net purchase price above €800 must be capitalized and depreciated over its useful life. The Federal Ministry of Finance publishes AfA tables listing standard useful lives for thousands of asset types:

• Laptop / computer: 3 years
• Car: 6 years
• Office furniture: 13 years
• Machinery: 5–15 years (depending on type)

Linear vs. Declining-Balance Depreciation

The linear method is the standard: acquisition cost divided equally across the useful life. Example: a €6,000 server with a 3-year life → €2,000 per year.

The declining-balance method was reintroduced in 2024 under the Growth Opportunities Act for movable assets acquired through December 2028. It applies a fixed percentage to the remaining book value, producing higher write-offs in early years. Max. 20% or twice the linear rate. You can switch to linear at any time.

Immediate Write-Off for Low-Value Assets (GWG) up to €800

Assets that are independently usable and cost up to €800 net (excl. VAT) can be fully expensed in the year of purchase under § 6 Para. 2 EStG (low-value assets / GWG).

Alternatively for assets between €250 and €1,000: a pooling entry (Sammelposten) written off evenly over 5 years (§ 6 Para. 2a EStG). The two methods are mutually exclusive per fiscal year.

Recording Depreciation in Your GmbH's Books

In your GmbH's bookkeeping, depreciation is posted as an expense (account 6020 under SKR03) reducing annual profit and tax liability. Every GmbH must also maintain an asset register (Anlagenspiegel) as part of its annual financial statements, tracking acquisition costs, additions, disposals, and annual depreciation per asset.

Investment Deduction (IAB): Deduct Before You Buy

Under § 7g EStG, your GmbH can deduct up to 50% of the planned acquisition cost of a future asset before purchasing it — the Investment Deduction (IAB). Total outstanding IABs cannot exceed €200,000, and the actual investment must happen within 3 years. Ideal in a high-profit year: reduces taxable profit today, lowering corporate and trade tax.

Conclusion

Depreciation rules aren't just compliance — they're a genuine tax planning lever. Knowing the GWG threshold, choosing the right depreciation method, and using the IAB can meaningfully reduce your annual tax bill. Norman helps you track fixed assets automatically and prepare your GmbH tax return based on complete bookkeeping data.