What are the benefits of the relocation allowance?

Every move is not only emotionally and physically exhausting, but also usually costs a lot of money. Few people know that you can also deduct your moving costs from your taxes.

A basic distinction is made between professional and private removals. The flat-rate relocation allowance gives you the opportunity to deduct the costs of a work-related move as a lump sum. You have two options. Either you can prove your costs with invoices or other evidence, or you can use the lump-sum removal costs allowance without further proof.

What requirements must be met?

A move is always for professional reasons if you are transferred, change your job, move into an apartment for your first job or shorten your commute to work. In this case, the journey must be shortened by at least one hour there and back or the accessibility of your workplace must be made easier. Starting a course of study or training also qualifies for a relocation allowance.

Both singles and married couples or registered civil partnerships can benefit from the flat-rate relocation allowance. If children or relatives live with single people in the same household and receive maintenance, the lump sum for relocation costs can be increased per person.

Moving allowance also for moves abroad

The special thing about the flat-rate relocation allowance is that you can not only claim relocations within Germany, but also within the EU. If you move outside the EU, the lump sum even increases by one percentage point. The situation is similar for relocations from abroad to Germany.

However, the flat-rate removal allowance is then significantly lower than for removals abroad and is only 80 percent of the flat-rate allowance for removals abroad. Even if you were an expatriate and are now returning to Germany for professional reasons, you can also benefit from a lump-sum removal allowance. It is important that you have a job offer in Germany.

Are you planning a professional relocation and would like to know what you can do with your property? Get in touch with us! We will be happy to advise you.

Did not find what you were looking for:

https://de.wikipedia.org/wiki/Umzug_(Wohnsitzwechsel)

https://de.statista.com/infografik/14257/umfrage-berufsbedingter-umzug/

https://de.wikipedia.org/wiki/Umzugsunternehmen

Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific individual case.

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