If you have to move for professional reasons, you should meticulously write down expenses incurred and collect the bills.
If you have to move for professional reasons, this can mean a lot of costs. If the employer did not cover the expenses, employees can declare some of the costs incurred as a result of the move in their tax return. You should know that certain costs associated with a professional move can be claimed as business expenses.
Costs are considered advertising costs
There are two groups, as the United Wage Tax Assistance (VLH) informs on its website: On the one hand, the “general” moving costs and on the other hand, the “other” costs.
The general moving costs therefore include:
Trips to search and view the new apartment
The first trip to the new apartment
Full service from a moving company such as packing, carrying or transport services
Brokerage costs for brokering the old apartment
The rent for the previous apartment, which you pay in addition to the new apartment (for up to six months)
Other moving costs include:
Telephone connection
Fee for new license plates
Fee for re-registering with the municipality and changing your identity card
Tips for the moving staff
General costs: Deduct actual costs
“You can state the full amount of the general costs, i.e. travel costs, costs for brokers, freight forwarding and double rent,” says the VLH. The relevant evidence is required here. “Collect all receipts and invoices, add up the expenses and enter the total in your tax return.” In addition, you can deduct the “other” costs - either with the flat rate for moving costs or the actual costs.
Other costs: Use flat rate for moving costs
“You don’t need to collect receipts or invoices for other moving costs. You can use the flat rate for moving costs,” says the VLH announcement. Otherwise: If the expenses exceed the flat rate, the actual costs may also be included.
How much are the moving fees?
The Federal Ministry of Finance has decided that flat-rate moving costs will be higher for moves from March 1st. According to a report by the German Press Agency, career starters who have just moved from their parents' house to their first place of residence could therefore declare a flat-rate moving expenses allowance of 193 instead of the previous 177 euros in their tax return for business expenses in Appendix N. This was reported by the Bavarian Income Tax Aid. Anyone who already owned a household could now declare 964 instead of 886 euros. For each additional household member who moves, there is another 643 euros flat rate. Previously it was 590 euros. A family of four can therefore declare a total flat rate of 2,893 euros, according to the dpa report.
The Federal Ministry of Finance regularly increases the moving allowances. Important, says the VLH in its communication:
It depends exactly on the day you start your move. “Since April 1, 2021, the day before the moving goods are loaded has been decisive for determining the flat rates.”