
What are the benefits of the relocation allowance?
When moving house, a distinction is generally made between work-related and private moves. The relocation allowance allows you to deduct the costs of a work-related move as a lump sum. You have two options here. You can either provide proof of your costs with invoices or other documents, or you can use the relocation allowance without further proof.
What requirements must be met?
A move is always considered work-related if you are transferred, change jobs, move into an apartment for your first job, or shorten your commute to work. In this case, the commute must be shortened by at least one hour for the round trip or your workplace must be easier to reach. Starting a degree or vocational training also qualifies for a relocation allowance.
The relocation allowance can be claimed by singles as well as married couples or registered domestic partnerships. If children or relatives live with single persons in a domestic community and receive maintenance, the relocation allowance per person can be increased.
Moving allowance also applies to moves abroad
The special thing about the relocation allowance is that you can claim it not only for moves within Germany, but also within the EU. If you move outside the EU, the allowance is increased by one percentage point. the same applies to moves from abroad to Germany.
However, the relocation allowance is then significantly lower than for moves abroad and amounts to only 80 percent of the allowance for moves abroad. Even if you were an expatriate and are now returning to Germany for professional reasons, you can also claim a relocation allowance. It is important that you have a job offer in Germany.
Are you planning a professional move and want to know what you can do with your property? Contact us! We will be happy to advise you.
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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 case.
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