These costs can be deducted from your taxes when you move

Anyone who moves can have part of the costs reimbursed for tax purposes: either as advertising expenses in “Annex N” or as household-related services in the “Appendix household-related expenses”. This applies to moves for private, professional or health reasons as well as moves after a natural disaster or because an apprenticeship has started. However, those who move for professional reasons can deduct the most.

Household-related services or exceptional burden

As a private individual, you can claim and receive a maximum of 20,000 euros in expenses for household-related services per year thus up to 4,000 euros tax reduction per year. The commissioning of a forwarding agency for a move, for example, can be booked in the tax return as a household-related service and thus part of the usually high forwarding costs can be deducted from the tax.

Extraordinary expenses may include costs incurred by moving for health reasons or after a natural disaster such as a flood and which represent a disproportionately high financial burden.

Moving for professional reasons: You can deduct these costs

If you move for professional reasons, various moving costs can be deducted 30 cents per kilometer for trips to view apartments, brokerage fees for rental apartments (not for properties to buy!), double rent payments for a period of six months, costs for the transport of household goods, for repairs to transport damage, the renovation of the old apartment, the costs of the Catering for movers and much more. The wage tax help offers a detailed overview of the possibilities and can help with the correct inclusion of the costs in the tax return.

However, the condition for being able to deduct all these costs is that

– either your employer requires you to move (e.g. moving into a official residence or moving out of this residence if you no longer work for this employer),
– you save at least one hour commuting to work by moving or you can get to your place of work better by public transport,
– you can avoid having to keep house twice for work reasons by moving or
– You are moving to start an apprenticeship or study at your new place of residence.

How much is the moving fee?

Receipts must be submitted for all expenses, unless you use your allowance, the relocation allowance. Then you can simply post the expenses as “other costs” without receipts and access the tax allowance (the moving flat rate):

The moving flat rate was last increased in April 2021: As a person who paid the moving costs takes over, you will receive an allowance of 870 euros, whereby you will be granted a surcharge of 580 euros for each additional household member (irrespective of whether spouse or child).

The following generally applies: If a second job-related move takes place within 5 years, the flat rate increases by 50 percent.

By the way: If the original reason you are moving is private, but your new place of residence shortens your commute by at least one hour, you are still entitled to a flat-rate relocation allowance.

Editorship finanzen.net

Image sources: Gunnar Pippel / Shutterstock.com

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