What is the declining-balance depreciation in the 2026 investment booster?

Under the immediate investment programme, movable fixed assets can be depreciated on a declining-balance basis at up to 30% per year — at most three times the straight-line rate. This applies to assets acquired between 1 July 2025 and 31 December 2027.

Who may use the declining-balance depreciation?

All profit-makers — so freelancers and sole traders using the EÜR (cash-basis profit calculation), not just corporations. The requirement is a movable, depreciable fixed asset, such as machines, tools, office equipment or technology.

How does declining-balance depreciation work?

The depreciation rate is applied each year to the residual book value, not to the original acquisition cost. This makes the amounts high in the early years and lower afterwards. You may switch to straight-line depreciation at any time — sensible once the straight-line remaining depreciation is higher.

Can I combine declining depreciation and immediate write-off?

Low-value assets up to €800 net can still be written off in full immediately. For more expensive purchases, declining-balance depreciation is the method of choice. Using both routes side by side is common and permitted.

Investment Booster 2026: 30% Declining Depreciation

A new machine, an expensive computer, your practice equipment — large purchases normally reduce your profit only slowly over many years. The investment booster changes that: with 30% declining-balance depreciation you bring a much larger share into tax immediately in 2026. This guide shows how it works, who it applies to, and how to maximise the benefit.

In short: The immediate investment programme allows declining-balance depreciation of up to 30% per year for movable assets (at most three times the straight-line rate). It applies to assets acquired from 1 July 2025 to 31 Dec 2027 — including freelancers and sole traders using the EÜR. The rate applies to the residual book value, is high at first and falls. A switch to straight-line is allowed at any time.

Straight-line vs declining — the difference

Straight-line depreciation spreads the cost evenly over the useful life. A machine costing €100,000 with a ten-year life: €10,000 each year.

Declining-balance depreciation applies a fixed percentage to the residual book value each year. This gives much higher depreciation in the early years — and therefore an earlier reduction in your tax burden.

The rules of the investment booster

Rate: up to 30% per year, at most three times the straight-line rate.
Time window: acquisition or manufacture between 1 July 2025 and 31 Dec 2027.
Object: movable, depreciable fixed assets — machines, tools, office and IT equipment, practice devices.
Who: all profit-makers, including freelancers and sole traders using the EÜR.

Worked example

Photographer Sila buys studio equipment for €30,000 in 2026 (10-year life, so 10% straight-line).

Year	Declining (30%)	Straight-line (10%)
1	€9,000	€3,000
2	€6,300	€3,000
3	€4,410	€3,000

In year one Sila depreciates €9,000 instead of €3,000. At a marginal rate of 35%, that’s about €2,100 more tax saving in the first year — liquidity she can reinvest immediately.

Tip: As soon as the straight-line remaining depreciation would be higher than the declining one, switch to straight-line. That extracts the maximum.

Combining with low-value assets and immediate write-off

Smaller purchases don’t need declining depreciation at all:

Low-value assets (GWG) up to €800 net can be written off in full immediately.
For anything above that, declining-balance depreciation is usually the best choice within the booster period.

How to deduct expensive purchases in general is in Deducting expensive purchases and Depreciation for freelancers. Calculate the schedule with our depreciation calculator.

Common mistakes

Missing the time window. Only acquisitions up to end of 2027 are favoured.
Not switching to straight-line. Those who miss the switch give away later depreciation.
Overlooking low-value assets. Up to €800 immediately — often simpler than any depreciation.
Ignoring private use. Only the business share is depreciable.

How Restio helps

Which depreciation pays off for which purchase is a calculation with several levers. Restio takes it off your hands:

Compare methods — enter acquisition cost and useful life, and Restio shows declining vs straight-line plus the best switch point.
Check per expense — photograph the invoice; Restio recognises whether it’s a low-value asset or depreciated on a declining basis.
Instant answers — ask in English or German: “Is declining depreciation worth it for my laptop?” or “By when do I have to buy?”

For integration into your annual accounts, your tax advisor helps — Restio makes sure you record the purchase correctly from the start.

The investment booster is a time-limited gift: those who invest between 2025 and 2027 deduct a large share of the cost from tax immediately. Those who know the window and the switch point extract the maximum. The overview is at the Federal Ministry of Finance on the growth booster.