For many people, one of the most important moving tips: Moving costs may be tax deductible. This is not true for all costs and not in every case, but it is possible far more often than you might think. We will gladly explain everything you need to know about this moving tip and calculate the complete bill around your move for you.
In the case of removals (these count as household-related services) that were carried out by furniture removal companies, the pure labor costs can be claimed for tax purposes, up to a maximum of 4,000.00 euros.
The prerequisite for this is that you prove the expenses by submitting an invoice showing the labor costs and the payment to the account of the furniture removal company by means of a receipt from your bank. The deductibility does not apply if the costs are reimbursed by the employer or an office/authority.
Moving costs incurred for professional reasons can be claimed as income-related expenses for tax purposes in the income tax return and in the application for annual wage tax equalization. As with all income-related expenses, the professional reason is an indispensable prerequisite for the tax recognition of moving expenses.
- Transportation expenses
- Travel expenses
- Rent compensation
- Housing agency fee
- Cook stove and oven expenses
- Additional child instruction expenses
- Other moving expenses
The necessary expenses for transporting the removal goods from the previous to the new home are tax-deductible. If the new residence is located abroad, the transportation costs up to the domestic border location are recognized. The household effects include the furnishings and, to a reasonable extent, other movable property and pets owned, possessed or used by the person moving or other persons living in the household with him or her on the day before the household effects are loaded. "Other persons" include the spouse and unmarried children, stepchildren and foster children. Furthermore, the unmarried children, relatives up to the fourth degree, in-laws up to the second degree and foster parents, if the movant provides accommodation and maintenance to these persons on a more than temporary basis due to legal or moral obligation. In addition, there are domestic servants and such persons whose help is required by the person moving not only temporarily for professional or health reasons. Deductible transportation costs also include expenses for the transportation of workroom equipment. However, here, too, the move must be for professional reasons.
The travel expenses of the relocating person and the persons belonging to the domestic community from the previous to the new place of residence are tax deductible. In addition, a daily allowance can be claimed, from the day of loading the removal goods to the day of unloading, provided that these two days also count as full travel days. Furthermore, overnight allowance for the day of unloading the removal goods, if an overnight stay outside the new home was necessary. The same applies to the costs of two trips by one person or one trip by two persons to the new place of residence to look for or visit an apartment. However, travel expenses shall be taken into account only up to the amount of the cheapest ticket of the generally lowest class of a regularly scheduled means of transport. Daily and overnight allowances are recognized in this case for a maximum of two days of travel and two days of stay. Travel expenses for a trip to the previous place of residence and implementation of the move can also be deducted for tax purposes within the above-mentioned limits.
The rent for the previous apartment is tax-deductible up to the time when the tenancy could be terminated at the earliest, but for no longer than six months if rent had to be paid for the new apartment for the same period. Furthermore, the necessary costs for subletting the apartment within the contract period are recognized for tax purposes up to the amount of one month's rent. The same applies to the rent of a garage. Tax deductible is also the rent for the new apartment, which had to be paid according to the situation of the housing market for a period during which the apartment could not yet be paid, however, limited to three months if rent had to be paid for the previous apartment for the same period. The same applies to the rent of a garage. For the apartment in the own house or the condominium there is the same deduction possibility with limitation to one year. The rent is replaced by the local rental value of the apartment. The same applies to the garage. No deduction amount can be applied to the new apartment in one's own house or the new condominium.
Tax deductible are the necessary local brokerage fees for the procurement of a rental apartment and a garage or the corresponding expenses up to this amount for an own apartment.
The cost of a cooking stove is deductible up to a certain amount if its acquisition is necessary when moving into the new apartment. If it is a rented apartment, the necessary expenses for stoves for each room are also taken into account for tax purposes.
The costs of additional tuition for the children due to the move are tax-deductible up to a fixed maximum amount of € 1,926.
Other moving expenses can be claimed in the income tax return and in the application for annual wage tax equalization in the amount of a lump sum, namely € 764 for single persons, € 1,493 for married persons and € 337 for each additional person of the household (as of 01.02.2017).
The amount increases for each of the above-mentioned persons, with the exception of the spouse, if they continue to live in the same household as the person moving after the latter has moved. In the case of a move on the occasion of the establishment or termination of a double household, the other moving expenses must be proven, as the lump sums do not apply in this case. If the employer reimburses moving expenses, the reimbursed amount remains exempt from payroll tax up to the limits listed above. If the moving expenses exceed the reimbursement amount, the employee can deduct the higher expenses as income-related expenses.
The regulations listed apply to a domestic move. In the case of moves abroad, there are in some cases different tax deduction options.