Very interesting for expatriates who are working and living in or considering re-locating to Germany is the tax deductibility of work-related relocation expenses.
Relocation expenses are work-related if
Deductible are all removal/transport and travelling costs for the employee and his or her family. Deductible are also expenses for flights to search for a home in Germany. Additional expenses such as compensations for rental contracts, broker fees for procuring flat or home or in connection with childcare can be deducted.
In addition there are special lump-sum deductions for
The lump sum for relocation outside the EU is currently amounting to 943,38 EUR and within the EU to 853,53 EUR. These amounts will be further increased for relocating family members.
The employer may reimburse those expenses free of tax. However, if the employer does not reimburse all relocation expenses, the employee is entitled to deduct additional costs in his or her German income tax return. In this case, a single proof of the actual removal costs must be provided.
We would be happy to assist you with our professional tax advice.
Diplom-Finanzwirt Steuerberater Partner
GINSTER • THEIS • KLEIN & PARTNER mbB