Deducting removal costs from your tax return: business vs. personal

Moving house costs money – there’s no getting round that. But did you know that you can quite legally get the tax office to contribute towards your costs? Whether you’re moving to a new place for that dream job or settling into a nicer home for purely personal reasons: here’s your guide to getting some cash back the following year – and why being penny-wise and pound-foolish when moving house can quickly end up costing you dearly.

When your employer pays for the move

Scenario 1: Relocation for work (allowable expenses)

If you move house because of your job, the tax office practically rolls out the red carpet for you. Your move will be recognised as work-related if your daily commute (there and back) is reduced by at least one hour, you are starting a new job, or your employer transfers you to a different location.

  • What can you claim? Almost everything! Transport costs for the removal firm, travel expenses for viewing flats, estate agent’s fees (only for rented flats, not when buying!) and even double rent payments for up to six months.
  • The flat-rate relocation allowance: For other expenses (cosmetic repairs, re-registration fees, tips), there is a statutory flat-rate amount which is adjusted annually. You don’t even need to keep hold of individual receipts!
  • Maintaining two households: If you retain your main residence and only take a second home at your place of work, you can also claim a substantial tax deduction for the costs involved.
relocation for work

Moving house for personal reasons

Scenario 2: Private removals (household-related services)

Are you moving purely for love, do you need an extra children’s bedroom, or do you simply want to live closer to Lake Constance? Even if it’s purely for personal enjoyment, the tax office will still recognise it – under the „household-related services“ scheme.

  • What is tax-deductible? You can deduct 20 % of your pure work-related and travel expenses (up to a maximum tax relief of 4,000 euros per year) directly from your tax liability.
  • Please note: Items such as removal boxes, no-parking zones or third-party estate agent’s fees are not included in this. This relates solely to the services provided by our packers, drivers and furniture fitters.
private move

Sustainable packaging

The most important basic rule for both cases:

There’s one thing the tax office takes absolutely no nonsense about: cash payments. It doesn’t accept cash receipts! You absolutely must have a proper, transparent invoice on which the labour costs alone are shown separately, and you must pay the amount by bank transfer. Working off the books for „friends of friends“ might save you a few euros at first, but it’ll cost you hundreds of euros in tax refunds when you file your tax return.

Make sure you keep all receipts, tickets for sightseeing trips and invoices right from the start. With a reputable removal company Maier Not only will you have complete planning certainty and insured furniture, but you’ll also have a watertight document for your tax adviser. Please feel free to discuss this with us during the planning stage!

save on tax

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