Renovation work

Renovation work refers to structural changes made to an existing property that go beyond mere maintenance or repair and alter the building’s structure, floor plan, use, or exterior appearance. Such work ranges from changes to the floor plan to additions and extensions, as well as changes in use (e.g., converting living space into office space). Renovation projects may require a permit and often require the approval of the owners’ association in condominium communities.

Renovation Projects Requiring Permits vs. Those Exempt from Permits

In Bavaria, the Bavarian Building Code (BayBO) distinguishes between construction measures requiring approval (Art. 55 BayBO) and projects exempt from the approval process (Art. 57 BayBO). Projects exempt from approval include, for example, non-load-bearing interior walls, drywall work, changes to windows without altering the opening size, and small additions up to defined size limits. The following, in particular, require a permit:

• Changes of use: e.g., converting living space into an office, a basement into living space, or a single-unit apartment into multi-room apartments with separate entrances
• Additions and extensions: Expansions of the building volume exceeding the limits for projects not requiring a permit (Art. 57 BayBO)
• Structural alterations: wall openings, ceiling openings, or removal of columns that affect the structural integrity
• Listed buildings: Any alteration to listed buildings additionally requires the approval of the Lower Monument Protection Authority (UDB)

Renovation without the required permit is formally illegal and can lead to demolition orders-even if the construction work was technically flawless. In the event of a dispute, this can significantly impair a property’s marketability, as buyers and financing banks insist on legal compliance.

Renovation Measures in a Condominium Association: Approval Requirements

In a condominium association, the following applies: Measures that affect only the individual unit (e.g., new kitchen, bathrooms, non-load-bearing interior walls) may be carried out by the owner at their own discretion-provided that no pipes or shafts belonging to the common property are affected.

As soon as common property is affected (load-bearing walls, exterior facade, roof, common utility shafts, stairwells), a resolution by the owners’ meeting is required. Since the 2020 WEG reform (Section 20 WEG, as amended), a simple majority is sufficient in many cases for structural changes to the common property-provided that the applicant bears the costs alone and the measure does not unreasonably affect any other owner. However, anyone who makes alterations to the common property without a resolution risks being required to restore it at their own expense.

For modernization measures involving significant expense (§ 21 WEG)-e.g., installation of a charging infrastructure, installation of an elevator, or comprehensive energy-efficient renovation-a qualified majority (more than two-thirds and more than 50% of the co-ownership shares) is required.

Tax Benefits of Renovation Measures

For rented properties, renovation costs can be claimed as income-related expenses or as production costs. The key distinction is:

• Maintenance expenses (fully deductible immediately): Measures that maintain the condition of the property or bring it up to modern standards without creating new functions. Example: Replacing old windows with new windows of the same quality.
• Construction costs (to be depreciated over the remaining useful life, generally 2% per year): Measures that create new functions, significantly expand the property’s structure, or increase the floor area. Example: Converting an attic into living space.
• Construction costs incurred shortly after acquisition (Section 6(1)(1a) of the German Income Tax Act (EStG)): Renovations carried out within the first three years after acquisition that exceed 15% of the building’s purchase price must be treated as construction costs-even if the individual measures would, taken on their own, be considered maintenance expenses.

This distinction is complex under tax law and regularly leads to disputes with the tax office. We recommend always consulting a tax advisor for major renovation projects-before construction begins, not just when the bill arrives.

Costs and Cost Control

Renovation projects tend to exceed budgets, especially when unexpected issues arise in the existing structure: hazardous materials (asbestos, adhesives containing PAHs), moisture damage behind cladding, or non-compliant electrical installations that must be replaced at the same time. We recommend budgeting a planning buffer of 15-20% of the estimated renovation costs for existing buildings.

Estimated prices for typical renovation projects in the Nuremberg region (as of 2025):

• Wall opening (load-bearing wall, including lintel and structural analysis): €3,000-8,000
• Combining bathroom and toilet (including new fixtures): €15,000-30,000
• Kitchen with wall opening (including kitchen cabinets): €8,000-20,000
• Attic conversion into living space (from shell to turnkey): €1,500-2,500/m²
• Basement conversion into living space (including drainage, if necessary): €800-2,000/m²

Practical tip for homeowners in Nuremberg and Franconia

In Nuremberg, many existing apartments from the 1960s to the 1980s feature outdated floor plans-small kitchens, cramped bathrooms, and separate toilets. Targeted renovation measures, such as creating an open kitchen by knocking down a wall or combining the bathroom and toilet, significantly increase the living quality and the selling price. In the appraisal, such measures can add tens of thousands of euros in value.

A common mistake: Renovation work is carried out immediately before the sale without a building permit in order to quickly add value. This carries the risk that an informed buyer or their bank will object to the work and insist on proof of approval. We recommend consulting the Nuremberg City Planning Office before planning value-enhancing renovations to clarify permit requirements early on.

Nuremberg-based contractors currently have lead times of 6-12 months-so it is particularly important to start planning capacity early. Contact us: We know reliable specialist contractors in our network who carry out renovation projects in the region with the required quality.

Frequently Asked Questions

Do I need a building permit to knock down a wall?

This depends entirely on whether the wall is a load-bearing wall. Non-load-bearing interior walls can be opened or removed in Bavaria without a permit (Art. 57 BayBO). For load-bearing walls, a structural analysis is mandatory; a building permit may be required depending on the scope of the work. If in doubt: hire a structural engineer before even picking up a hammer. A subsequent finding that a load-bearing wall was opened without a structural analysis can become a problem if you decide to sell the property.

How much does a typical apartment renovation cost in Nuremberg?

Combining a bathroom and toilet, including new fixtures, currently costs approx. €15,000-30,000 in the Nuremberg region; a kitchen with a wall opening costs approx. €8,000-20,000, including kitchen cabinets. Prices vary greatly depending on the standard of fixtures, the contractor, and unforeseen issues discovered in the existing structure. For a reliable cost estimate, we recommend obtaining at least two to three comparative quotes.

Can renovation costs be passed on to the rent?

Renovation measures that result in a lasting improvement in living quality entitle the landlord to a rent increase under § 559 BGB (modernization surcharge): 8% of the modernization costs attributable to the apartment may be added to the rent annually-for rents below €7/m², a cap of €2/m² applies. Pure maintenance measures are not eligible for apportionment. The tenant must be given three months’ notice prior to modernization (Section 555c BGB); otherwise, the landlord loses the right to increase the rent.

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