Tax Advantage
Buy Now, Deduct 30% in Year One
Germany’s accelerated depreciation window closes on 31 December 2027
If your business is taxed in Germany, a cycleWASH machine bought today is not just equipment — it is one of the most tax-efficient investments currently available.
Under the Gesetz für ein steuerliches Investitionssofortprogramm (in force since July 2025), German businesses can again use declining-balance depreciation (degressive AfA, § 7 (2) EStG) on movable fixed assets — at three times the straight-line rate, capped at 30% per year.
A cycleWASH bike wash system is a movable fixed asset. It qualifies.
The rule in three lines
| Who | Any business taxed in Germany — GmbH, GbR, sole trader, bike shop, dealer, municipality-owned operation, hotel, campsite |
|---|---|
| What | Movable fixed assets, e.g. a cycleWASH machine |
| When | Delivered and ready for use between 1 July 2025 and 31 December 2027 |
| How much | Up to 30% of the purchase price in the first year — then 30% of the remaining book value each following year |
Because the 30% cap is reached at any useful life of ten years or less, wash systems in this class get the full 30%.
What that looks like in cash
Illustrative example, non-binding: one cycleWASH Pro Platinum, €38,400 net, delivered in January, ten-year useful life, combined tax burden assumed at 30% (trade tax + corporation tax incl. solidarity surcharge). Your own figures will differ — please have them confirmed by your tax adviser.
| Year | Straight-line (10%) | Degressive AfA (30%) | Difference |
|---|---|---|---|
| 1 | €3,840 | €11,520 | +€7,680 |
| 2 | €3,840 | €8,064 | +€4,224 |
| 3 | €3,840 | €5,644.80 | +€1,804.80 |
| Total after 3 years | €11,520 | €25,228.80 | +€13,708.80 |
After three years you have written off 65.7% of the machine instead of 30%.
In year one alone, the deduction is worth roughly €3,456 in reduced tax at a 30% rate — around three times what straight-line depreciation returns.
Small and mid-sized businesses: up to 70% in year one
If your prior-year profit was €200,000 or less, § 7g (5) EStG lets you claim an additional special depreciation of up to 40% — and the law expressly permits this alongside degressive depreciation.
| Special depreciation, § 7g (5) EStG (40%) | €15,360 |
|---|---|
| Degressive AfA (30%) | €11,520 |
| Deductible in year one | €26,880 — 70% of the purchase price |
| Cash effect at a 30% tax rate | ≈ €8,064 |
Condition: the machine must be used almost exclusively (≥90%) in your German business in the year of purchase and the year after — which is exactly how a wash system gets used.
Planning ahead? The Investitionsabzugsbetrag (§ 7g (1) EStG) lets you deduct up to 50% of the expected cost up to three years before you buy — and it combines with degressive depreciation as well.
Timing changes the number
Degressive depreciation is calculated pro rata by month in the year of delivery.
- Delivered in January → the full 30% (€11,520)
- Delivered in October → 3/12 of it (€2,880)
- Delivered in December → 1/12 (€960)
The earlier in the year your machine arrives, the more of the first-year deduction you actually get. With our standard lead time of around three weeks after order, a decision made now still lands in this tax year.
Why this matters now
Accelerated depreciation moves your deduction forward — it does not create a larger one. What it creates is liquidity in the years when the machine is new and being paid for. With German corporation tax scheduled to fall in steps from 2028 onwards, a deduction claimed in 2026 or 2027 is set against a higher tax rate than the same deduction taken later.
- 31 December 2027 — the machine must be delivered and ready for use.
- 31 December of this year — the cut-off for the current tax year’s deduction.
Combine it with cycleWASH vendor financing
You do not have to pay cash to depreciate. With our in-house financing you can put down a deposit, pay the rest in monthly instalments — and still depreciate the full purchase price from the year of delivery, because the machine enters your balance sheet on delivery.
Deduction now, payment spread over time.
Disclaimer — indication only, no liability
All figures, examples and statements on this page are a non-binding indication intended to illustrate how the rules work in principle. They reflect our general understanding of German tax law as at August 2026 and are expressly not tax, legal or financial advice. CW Cleaning Solutions GmbH is not a tax adviser, gives no assurance that the figures apply to your business, and accepts no liability whatsoever for decisions taken on the basis of this page or for the tax treatment ultimately applied by your tax office. Depreciation depends on the useful life applied, your legal form, your prior-year profit and your individual tax position; tax law and its interpretation can change at any time. Please consult your own tax adviser (Steuerberater) before you make an investment decision or rely on any figure shown here.
