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Real estate renovation

Renovating a property has numerous advantages: It can increase the value of the property, improve living quality, and reduce energy costs in the long term. Value-preserving renovations are especially beneficial, as they also provide tax advantages since they can be deducted from your taxable income.

Careful planning – even across multiple tax years – can help optimize your tax burden.

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How to proceed

1

Define requirements and objectives

  • Together, we analyze which renovations are sensible and necessary, for example:

    • Value-preserving renovations: Repairs or renewals that restore the property to its original condition (e.g., replacing windows, roof repairs, modernizing the heating system).
    • Value-enhancing renovations: Measures that increase the value of the property (e.g., installing a new kitchen or an additional bathroom).
  • Objective setting: Improvement of living quality, reduction of energy costs, or preparation for a subsequent sale.

2

Tax planning for value-preserving renovations

  • For tax purposes, value-preserving renovations can be deducted from income.

  • Planning across tax years:

    • Larger renovation projects can often be spread across two tax years to maximize tax advantages.
    • Example: Half of the work starts in December, while the other half concludes in January of the following year.
  • We help you plan renovations so you can best benefit from tax advantages.

3

Plan budget and financing

  • Creation of a detailed budget that covers all costs, including materials, labor, and unforeseen expenses.

  • Financing options:

    • Equity
    • Mortgage increase or renovation loans
    • Funds for energy-efficient renovations (e.g., tax advantages, subsidies)
  • We help you develop the best financing strategy and ensure the availability of funds.

4

Planning and approval

  • Support in selecting specialists such as architects and craftsmen.

  • Assessing whether a construction permit is required for the planned renovations (e.g., for facade upgrades or structural changes).

  • Coordination of all necessary documents to ensure a smooth operation.

5

Support during renovation phase

  • Monitoring progress, quality control, and ensuring compliance with renovation schedules.

  • Support in communicating with service providers and clarifying issues.

6

Completion and documentation

  • Once the renovation work is done, we examine the results and document the renovation, particularly value-preserving measures, for tax purposes.

  • Advice on warranty claims and insurances for the newly renovated property.

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smzh for you

Your advantages with smzh when renovating:

  • Tax optimization: We advise you on how to plan value-preserving renovations and make the proper claims for optimal tax benefits, even across multiple years.
  • Personalized advice: We support you with planning and financing, tailored to your specific needs.
  • Grants and subsidies: We assess which funding your renovation may be eligible for and guide you through the application process.
  • Support during renovation: We monitor the quality of the work and assist you if problems arise.
  • Network and expertise: smzh has a wide network of experienced professionals, from architects to craftsmen.

We handle questions such as those shown on the right on a daily basis. You don't need to deal with them by yourself – our 360° Check-Up is free of charge and non-binding.

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Value-preserving renovation is work that restores a property to its original condition, such as repairs or replacements of old components (e.g., windows, roof, heating system). These expenses can be deducted for tax purposes.

By spreading larger renovation projects over two tax years, you can maximize the tax benefits. We assist you with the relevant planning.

Yes, increasing your mortgage is often a sensible option. We will review your loan-to-value limit and advise you on the best financing solutions.

This depends on the planned renovations. Smaller renovations often require no permit, while bigger changes do.

Yes, there are numerous funding programs that support energy-efficient renovations such as heat insulation or solar installations. We help you find the appropriate programs.