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Wear and Tear Allowances

Wear and Tear allowances are the substitute of depreciation and they represent a tax deductible allowance for the wear and tear of assets used in the business. Wear and tear allowances are available to companies and individuals who prepare accounts.

The current wear and tear rates are:

Plant and machinery

Fork lifts, excavators, loading vehicles, bulldozers and oil barrels 25%
Motor vehicles except from private saloon cars 20%
Capital expenditure incurred for electric vehicles, within the tax years 2023-2026 33.33%
Personal computers (hardware) and operating software

Application software> up to €1.709

above €1.709


Plant and machinery used in agriculture 15%
Water drillings, industrial carpets, video recorders, televisions 10%

Any other plant and machinery. Furniture & Fittings.

Plant and Machinery (acquired during tax year 2012-2018)


20% ( unless the rate on such capital allowances is higher)


Metallic frame of greenhouses 10%
Wooden frame of greenhouses 33.33%

Industrial, agricultural and hotel buildings

Industrial, agricultural and hotel buildings(acquired during tax year 2012-2018)



Commercial buildings 3%
Capital expenditure incurred for improving the energy efficiency of buildings, within the tax years 2023-2026 7%


Steamships, tug-boats and ships used in the fishing industry 6%
Sailings vessels 4.5%
Ship launching machinery 12.5%
Used ships in accordance with special agreement
New commercial ships 8%
New passenger ships 6%


Used commercial and passenger ships and capital additions remaining useful economic life in accordance with the class certificate


All tools in general 33.33%
Videotapes used by video clubs 50%

Allowances for specialized fixed assets

Armored Cars
(used by businesses which provide security services)
Motor Yachts 6%
Wind Generators
(the cost should include the cost of installation reduced by any amount of subsidy received)
Photovoltaic Systems
(the cost should include the cost of installation reduced by any amount of subsidy received)
New Airplanes 8%
New Helicopters 8%
Specialized machineries for rail roading
(e.g. Locomotive engines, Ballast wagon, container wagon and container sleeper wagon)
Capital expenditure incurred for technical energy efficiency systems of buildings, systems renewable energy sources, and Batteries electricity storage, within the tax years 2023-2026, 20%

Intangible assets

Intangible assets with certain exceptions 5%-100%
(The capital cost of any intangible asset, excluding goodwill and assets under the old IP regime, is tax deductible as a capital allowance over the useful economic life of the asset, as determined by acceptable accounting principles (with a maximum useful life of 20 years).)