Built-in kitchen (valuation)

Built-in Kitchen (Valuation) - When valuing a built-in kitchen in the context of a real estate sale or rental, the fair market value (not the original purchase price) is the determining factor. Built-in kitchens lose value quickly due to wear and tear and aging - the annual depreciation is typically 10-15% of the original purchase price. The residual value is often listed separately in the purchase agreement, as the built-in kitchen, being a movable asset, is not subject to real estate transfer tax - a legal and common practice for tax savings.

Calculating the Current Market Value

The valuation of a built-in kitchen follows a straight-line depreciation method:

Formula: Current market value = Original price × (1 - Age in years ÷ Useful life)

Typical useful lives:

• Basic kitchen (original price under €5,000): 10-15 years
• Mid-range kitchen (€5,000-15,000): 15-20 years
• High-end kitchen (over €15,000): 20-25 years

Calculation example:

• Original price: €12,000
• Age: 8 years
• Useful life: 20 years
• Current market value: €12,000 × (1 - 8/20) = €7,200

Significance when buying real estate

Listing the built-in kitchen separately in the purchase contract has tax and legal advantages:

• Real estate transfer tax savings: The built-in kitchen is not part of the property-its value is deducted from the purchase price and is not subject to real estate transfer tax (3.5% in Bavaria). For a kitchen valued at €10,000, the buyer saves €350 in real estate transfer tax
• Notary fee savings: Notary fees are calculated based on the transaction value-the value of the kitchen is excluded
• Realistic valuation: The tax auditor accepts only the verifiable fair market value, not the new price-inflated estimates are corrected

Note: The tax office reviews the reasonableness of the assessed value. Unrealistic amounts (e.g., €30,000 for a 15-year-old standard kitchen) will be rejected.

Fair Market Value Table for Built-in Kitchens by Price Segment

Kitchen Category	Original Price	Useful Life	Fair Market Value after 5 Years	Fair Market Value after 10 Years	Depreciation for Rental
Basic kitchen	€3,000-5,000	10 years	€1,500-2,500	Residual value €0	10% p.a.
Standard kitchen	€5,000-10,000	15 years	€3,300-6,700	€1,700-3,300	10% per year
Mid-range kitchen	€10,000-20,000	20 years	€7,500-15,000	€5,000-10,000	10% p.a.
High-end kitchen	€20,000-50,000	25 years	€16,000-40,000	€12,000-30,000	10% p.a.

Current market value = original price × (1 - age / useful life). Depreciation for rented properties: 10 years according to the BMF table (10% per annum regardless of the actual original price).

Built-in kitchens in rented properties

In rented apartments, the built-in kitchen also plays a special role from a tax perspective: It is considered an independent asset that is depreciated separately from the building. The depreciation period for built-in kitchens in rented properties is typically 10 years (according to the BMF table), which allows for a depreciation of 10% of the purchase price per year. A new kitchen costing €8,000 can thus be claimed for tax purposes at €800 per year. When tenants move out and a new kitchen is purchased, we recommend immediately writing off the residual value of the old kitchen and capitalizing the new kitchen separately.

Practical Tip for Property Owners in Nuremberg and Franconia

When selling a condominium in Nuremberg, we recommend listing the built-in kitchen (and other movable items such as awnings, saunas, and built-in cabinets) separately in the purchase agreement-with a transparent calculation of their current market value. Present the original invoice for the kitchen to the notary (original price and purchase date) and calculate the current market value using the straight-line method. For a 10-year-old kitchen with a new price of €15,000 and a 20-year useful life, this results in a current market value of €7,500 - saving the buyer €262 in real estate transfer tax and slightly reducing notary fees. Don’t overstate the value: The Nuremberg-South and Nuremberg-North tax offices randomly audit inventory values in home sales and retroactively correct unrealistic amounts with interest.

Frequently Asked Questions

How much is my built-in kitchen still worth when selling my home?

Calculate the current market value using a straight-line method: Divide the original price by the useful life (15-20 years for standard kitchens) and multiply by the remaining years of use. A 5-year-old kitchen with an original price of €10,000 and a useful life of 20 years has a current market value of approximately €7,500. After 15 years: approx. €2,500. The minimum current market value is typically 10-15% of the original price, as even an old, functional kitchen with all appliances has a residual value. Refer to the original invoice as proof for the tax office.

Can I freely determine the kitchen price in the purchase agreement?

No-the stated value must correspond to the actual current market value. The tax office compares the stated value with the age and quality of the kitchen. If an unrealistically high amount is declared to save on real estate transfer tax, the tax office will correct the transaction value and retroactively assess the real estate transfer tax-including interest on back payments (currently 1.8% p.a.). Recommendation: Keep the invoice, calculate the current market value using a linear and transparent method, and take photos documenting the kitchen’s current condition.

Is it worth installing a new kitchen before selling?

Generally no-a new kitchen costing €10,000-15,000 rarely increases the selling price by the full amount of the investment, as prospective buyers often have their own ideas and prefer to choose for themselves. It makes more sense to have an existing kitchen in good condition professionally cleaned and, if necessary, to replace hinges, drawer slides, and countertops. Exception: For rental apartments, a contemporary and functionally modern kitchen can significantly improve rentability and increase the achievable rent by €0.50-1/m²-here, the investment pays off faster.

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