GWG Threshold 2026: Immediate Write-Off in Germany Explained

Germany's tax law allows businesses to immediately deduct the full purchase cost of low-value assets (Geringwertige Wirtschaftsgüter, or GWG) in the acquisition year. The GWG threshold in 2026 remains at €800 net — no multi-year depreciation schedules, just instant tax relief. This rule applies to GmbH, UG, and self-employed individuals alike.

What qualifies as a low-value asset (GWG)?

Three conditions must all be met for an asset to be treated as a GWG:

• Movable asset: Only tangible, movable items — not real estate, built-in fixtures, or intangible assets like patents.
• Independently usable: The asset must function without a primary device. An office chair: yes. A built-in shelf: no. Ink cartridges without a printer: no.
• Subject to wear: The item loses value over time through use.

Common GWG examples: office chairs, desk lamps, printers, smaller monitors, smartphones, hand tools, and short-lived software licenses.

GWG Threshold 2026: Which Rules Apply?

The thresholds have been unchanged since 2018 and remain the same in 2026:

• Up to €250 net: Immediate deduction always available, no formal election required.
• €250 – €800 net: Choice between immediate write-off (§6 para. 2 EStG) and pool method (§6 para. 2a EStG).
• €800 – €1,000 net: Only the pool method is allowed, provided you have elected it for the current fiscal year.
• Over €1,000 net: Standard depreciation (AfA) over the asset's useful life per the official AfA schedule.

The threshold always applies to the net price (excluding VAT). Small businesses and VAT-exempt entities use the gross price.

Immediate Write-Off Under §6 Para. 2 EStG

If you elect the immediate write-off method, you deduct the full purchase price of any GWG (up to €800 net) in the acquisition year. Three key advantages:

• No asset register required: The GWG does not need to appear in the fixed asset register.
• No annual depreciation entries: A single booking in the acquisition year is all that's needed.
• Immediate profit reduction: The full amount reduces taxable profit in the acquisition year.

Important: The election applies uniformly to all GWG in the same fiscal year. You cannot choose immediate write-off for one asset and the pool method for another in the same year.

GWG Pool Method Under §6 Para. 2a EStG

Alternatively, you can group all GWG between €250 and €1,000 net into a collective pool and depreciate it evenly over 5 years (20% per year). The pool simplifies bookkeeping when you have many small purchases, such as equipping multiple workstations. Downside: if an asset is retired early, its residual pool value continues to be depreciated until year 5.

Booking GWG in a GmbH

German commercial law (HGB) has no GWG simplification — assets must be depreciated over their economic useful life in the financial statements. The immediate write-off is a tax law option only, applied in the tax balance sheet. This creates a temporary difference between financial and tax accounts. For more on GmbH depreciation, see GmbH Depreciation and AfA.

Practical Examples: Office Chair, Laptop, and Printer Accessories

Office chair at €650 net: Independently usable, movable, under €800 — fully deductible in the year of purchase. Result: €650 less taxable profit in 2026.

Laptop at €1,400 net: Exceeds the GWG threshold — must be depreciated over 3 years per the AfA schedule (approx. €467 per year).

Printer with accessories: Printer for €550 + non-independently-usable cartridges for €80 bought at the same time = €630 total. Still under €800, immediate write-off applies. Tip: combine GWG deductions with the Investment Deduction Amount (IAB) for planned purchases in the following year.

Conclusion

The €800 net GWG threshold is a simple but effective tax tool for GmbH and self-employed businesses. The election — immediate write-off or pool — must be made consistently for all GWG in the same fiscal year. See our overview of GmbH operating expenses for a complete picture of deductible costs. Norman's AI bookkeeping automatically identifies GWG-relevant purchases and categorizes them correctly.