GWG Threshold 2026: Immediate Write-Off in Germany Explained
Germany's GWG threshold in 2026 remains at €800 net. GmbH and freelancers can immediately deduct low-value assets in the year of purchase instead of depreciating over multiple years.
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Germany's tax law allows businesses to immediately deduct the full purchase cost of low-value assets (Geringwertige Wirtschaftsgüter, or GWG) in the acquisition year. The GWG threshold in 2026 remains at €800 net – no multi-year depreciation schedules, just instant tax relief. This rule applies to GmbH, UG, and self-employed individuals alike.
Key takeaways
- The GWG threshold for immediate write-off is €800 net in 2026 (§6 para. 2 EStG) – unchanged since 2018.
- Up to €250 net, an immediate deduction is always available, with no register required.
- Between €250 and €1,000 net, the alternative is the pool method, depreciated evenly over 5 years.
- The net amount always decides – except for small businesses (Kleinunternehmer), who use the gross amount.
- Computers, laptops, and software may be written off over a 1-year useful life, regardless of the €800 threshold.
What qualifies as a low-value asset (GWG)?
Three conditions must all be met for an asset to be treated as a GWG:
- Movable asset: Only tangible, movable items – not real estate, built-in fixtures, or intangible assets like patents.
- Independently usable: The asset must function without a primary device. An office chair: yes. A built-in shelf: no. Ink cartridges without a printer: no.
- Subject to wear: The item loses value over time through use.
Common GWG examples: office chairs, desk lamps, printers, smaller monitors, smartphones, hand tools, and short-lived software licenses. Used items can also be GWG – what counts is the actual acquisition cost, not the price when new.
GWG Threshold 2026: All Value Limits at a Glance
The thresholds have been unchanged since the 2018 reform. Which rule applies depends solely on the net value of the individual asset:
| Net value | Depreciation | Legal basis |
|---|---|---|
| up to €250 | immediate deduction, no election needed | §6 para. 2 EStG |
| €250 – €800 | choice: immediate write-off or pool | §6 para. 2 / 2a EStG |
| €800 – €1,000 | pool only (if pool elected) | §6 para. 2a EStG |
| over €1,000 | standard depreciation over useful life | §7 EStG, AfA schedule |
Net or Gross? VAT Decides
For checking the thresholds, the net amount excluding VAT counts – provided you can deduct input VAT. A device at €799 net (€950.81 gross) is still a GWG, because the 19% input VAT is left out.
It is different for small businesses under §19 UStG and other entities that cannot deduct input VAT: they claim no input VAT and therefore use the gross amount. For them the ceiling is €800 gross, not €800 net. For more on this special status, see our guide to the small business regulation.
Immediate Write-Off Under §6 Para. 2 EStG
If you elect the immediate write-off method, you deduct the full purchase price of any GWG (up to €800 net) in the acquisition year. Three key advantages:
- No asset register required: The GWG does not need to be carried in the fixed asset register for years.
- No annual depreciation entries: A single booking in the acquisition year is all that's needed.
- Immediate profit reduction: The full amount reduces taxable profit in the acquisition year.
Important: The election applies uniformly to all GWG in the same fiscal year. You cannot choose immediate write-off for one asset and the pool method for another in the same year.
Record-Keeping: When You Need a GWG Register
The immediate deduction is not entirely paperwork-free. From €250 net, a record-keeping obligation applies: immediately deducted GWG above this threshold must be listed in a running register showing the acquisition date and cost – unless those details already follow from your bookkeeping (for example, via a separate GWG account). Below €250 net, no special record is required; you book it straight as an expense.
GWG Pool Method Under §6 Para. 2a EStG
Alternatively, you can group all GWG between €250 and €1,000 net into a collective pool and depreciate it evenly over 5 years (20% per year). The pool simplifies bookkeeping when you have many small purchases, such as equipping multiple workstations. Downside: if an asset is retired early, its residual pool value continues to be depreciated until year 5.
| Criterion | Immediate write-off | Pool method |
|---|---|---|
| Value range | up to €800 net | €250 – €1,000 net |
| Timing | full in acquisition year | 20% over 5 years |
| Register | required from €250 | captured in the pool |
| Early disposal | book value already €0 | residual stays in pool |
Because both methods apply uniformly per year, it pays to review purchases before year-end: if you buy many items just over €800 in a single year, the pool is often the better choice.
Digital Assets: the 1-Year Write-Off
For computer hardware and software, a BMF directive from 2021 introduced a special rule: a useful life of 1 year may be applied – regardless of the €800 GWG threshold. This covers notebooks, tablets, printers, scanners, peripherals, and operating and application software.
In practice this means: even a laptop at €1,400 net, which exceeds the GWG threshold, is fully written off within twelve months – pro-rata from the month of purchase. This 1-year write-off is not a GWG immediate deduction, but it produces a very similar result. See our article on deducting a laptop.
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Booking GWG in a GmbH
German commercial law (HGB) has no GWG simplification – assets must be depreciated over their economic useful life in the financial statements. The immediate write-off is a tax law option only, applied in the tax balance sheet. This creates a temporary difference between financial and tax accounts. For more on GmbH depreciation, see GmbH Depreciation and AfA.
How to Book a GWG
For accounting, an immediately deducted GWG is posted to the GWG account in the SKR chart of accounts (SKR03: account 0480, SKR04: account 0670) and written off in full the same year. Input VAT is booked separately. Small amounts up to €250 net can be booked straight to expenses, without the detour via the GWG account. Book digitally and you skip the manual account mapping – Norman's AI bookkeeping recognizes GWG-relevant purchases automatically.
Practical Examples: Office Chair, Laptop, and Printer Accessories
Office chair at €650 net: Independently usable, movable, under €800 – fully deductible in the year of purchase. Result: €650 less taxable profit in 2026. Because it's over €250, the chair belongs in the GWG register.
Laptop at €1,400 net: Above the GWG threshold, but it is computer hardware – so the 1-year write-off applies instead of multi-year depreciation. Bought in July 2026, 6/12 of the cost is written off in 2026, the rest in 2027.
Printer with accessories: Printer for €550 + non-independently-usable cartridges for €80 bought at the same time = €630 total. Still under €800, immediate write-off applies. Tip: combine GWG deductions with the Investment Deduction Amount (IAB) for planned purchases in the following year.
Frequently Asked Questions About the GWG Threshold
Did the GWG threshold rise above €800 in 2026?
No. The immediate write-off threshold remains €800 net and has been unchanged since 2018. The pool method still runs up to €1,000 net as before.
Does the GWG threshold apply net or gross?
For businesses that can deduct input VAT, the net amount counts. Small businesses and other entities that cannot deduct input VAT use the gross amount.
Must every GWG go into a register?
Only immediately deducted GWG above €250 net are subject to the record-keeping obligation (date and acquisition cost). If that already follows from your bookkeeping, no separate register is needed. Below €250, the obligation does not apply.
Can I mix immediate write-off and the pool in the same year?
No. Within the €250 – €1,000 net range you must choose one method uniformly per fiscal year.
Does a used device count as a GWG?
Yes. What matters is the actual acquisition cost. If it is under €800 net, the immediate write-off applies – even for used goods.
Conclusion
The €800 net GWG threshold is a simple but effective tax tool for GmbH and self-employed businesses. The election – immediate write-off or pool – must be made consistently for all GWG in the same fiscal year, and for digital devices the 1-year write-off shortens depreciation further. See our overview of GmbH operating expenses for a complete picture of deductible costs. Norman's AI bookkeeping automatically identifies GWG-relevant purchases and categorizes them correctly.
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