Fam.Baum
2025-07-20 16:05:48
- #1
Hello dear forum,
We have already read a lot here and were able to acquire some knowledge. Thank you very much for that.
The topic of granny flats is certainly often discussed, but despite searching, we could not find any existing, well-suited threads.
We intend to purchase a single-family house in Baden-Württemberg. It has two full floors and a converted attic. The attic has its own kitchen and bathroom, because the builder originally planned and built it directly as an apartment for his mother. In the building application (from the 1950s), the rooms in the attic are referred to as "Kammer." The attic is accessed through the staircase of the single-family house. It currently has no separate apartment door.
We would now like to convert the attic into a granny flat and would be very grateful for your assessment on the following points:
1) Conversion of the attic into a granny flat:
The development plan allows for single-family houses with one or two residential units. A separate kitchen and bathroom are already present in the attic, only the apartment door is missing.
a) Do we need to apply for a building permit for this?
b) Is it a problem that the rooms are only called 'Kammer' in the building application?
2) Renting out the granny flat and thus tax deductibility of loan interest and incidental purchase costs:
We understand that the tax office recognizes a granny flat if it meets the building regulations. Since the apartment door is missing, this is currently not the case. Let’s assume we manage to realize and have the granny flat recognized.
a) Legally, at the time of purchase the house is a single-family house without a granny flat. How can we maximize the chance of having the attic recognized as a granny flat? Are special formulations in the purchase contract helpful?
b) Does it matter for the deductibility of incidental purchase costs that the granny flat did not yet exist as such at the time of purchase?
c) Allocation of costs: The purchase contract only states a purchase price for the plot including the single-family house. For cost allocation to the granny flat I would therefore use the living area ratio (total: 220 sqm, attic: 23 sqm, plus shared areas (entrance, staircase, laundry room) each at 50% => granny flat: 33 sqm => 15%).
d) We intend to take out two loans for the purchase (85% and 15% of the required total loan amount). We want to deduct the loan interest of the loan allocated to the granny flat for tax purposes. Same question as in b) -> Does it matter that the granny flat did not exist as such at the time of purchase?
e) The attic’s condition is roughly estimated to be as of 1980. Should we have a residual value appraisal made in order to maximize depreciation (AfA) of the granny flat?
f) We intend to rent out the granny flat in the attic as a secondary residence to my parents. They live 4 hours away and currently stay in hotels when they visit us. We will conclude a rental contract at 70% of the local comparative rent and of course the amount will be transferred monthly. Even if it is not necessary(?), for the renovation of the house I would provide separate energy meters for the attic. Do we need to consider anything else?
3) Energy refurbishment: We understand that KfW funding is calculated per residential unit and that the granny flat in the attic is therefore also attractive for energy refurbishment. Do living areas or allocation matter for KfW loans?
Best regards,
Fam. Baum
We have already read a lot here and were able to acquire some knowledge. Thank you very much for that.
The topic of granny flats is certainly often discussed, but despite searching, we could not find any existing, well-suited threads.
We intend to purchase a single-family house in Baden-Württemberg. It has two full floors and a converted attic. The attic has its own kitchen and bathroom, because the builder originally planned and built it directly as an apartment for his mother. In the building application (from the 1950s), the rooms in the attic are referred to as "Kammer." The attic is accessed through the staircase of the single-family house. It currently has no separate apartment door.
We would now like to convert the attic into a granny flat and would be very grateful for your assessment on the following points:
1) Conversion of the attic into a granny flat:
The development plan allows for single-family houses with one or two residential units. A separate kitchen and bathroom are already present in the attic, only the apartment door is missing.
a) Do we need to apply for a building permit for this?
b) Is it a problem that the rooms are only called 'Kammer' in the building application?
2) Renting out the granny flat and thus tax deductibility of loan interest and incidental purchase costs:
We understand that the tax office recognizes a granny flat if it meets the building regulations. Since the apartment door is missing, this is currently not the case. Let’s assume we manage to realize and have the granny flat recognized.
a) Legally, at the time of purchase the house is a single-family house without a granny flat. How can we maximize the chance of having the attic recognized as a granny flat? Are special formulations in the purchase contract helpful?
b) Does it matter for the deductibility of incidental purchase costs that the granny flat did not yet exist as such at the time of purchase?
c) Allocation of costs: The purchase contract only states a purchase price for the plot including the single-family house. For cost allocation to the granny flat I would therefore use the living area ratio (total: 220 sqm, attic: 23 sqm, plus shared areas (entrance, staircase, laundry room) each at 50% => granny flat: 33 sqm => 15%).
d) We intend to take out two loans for the purchase (85% and 15% of the required total loan amount). We want to deduct the loan interest of the loan allocated to the granny flat for tax purposes. Same question as in b) -> Does it matter that the granny flat did not exist as such at the time of purchase?
e) The attic’s condition is roughly estimated to be as of 1980. Should we have a residual value appraisal made in order to maximize depreciation (AfA) of the granny flat?
f) We intend to rent out the granny flat in the attic as a secondary residence to my parents. They live 4 hours away and currently stay in hotels when they visit us. We will conclude a rental contract at 70% of the local comparative rent and of course the amount will be transferred monthly. Even if it is not necessary(?), for the renovation of the house I would provide separate energy meters for the attic. Do we need to consider anything else?
3) Energy refurbishment: We understand that KfW funding is calculated per residential unit and that the granny flat in the attic is therefore also attractive for energy refurbishment. Do living areas or allocation matter for KfW loans?
Best regards,
Fam. Baum