Guide · Moving and the tax office (Finanzamt)

How to deduct moving costs from tax

In Germany a move can be claimed for tax purposes — to what extent depends on whether it was work-related or private. Work-related moves count as Werbungskosten (income-related expenses), private moves partly as household-related services (haushaltsnahe Dienstleistungen). In both cases the invoice is what counts: labour costs shown separately and paid by bank transfer.

Invoice with labour costs shown separatelyPayment by bank transferUsable for the FinanzamtNo discount for cash

Work-related or private — everything depends on it

Tax law distinguishes two cases, and they are treated completely differently. Which one applies to you decides how much you can claim — and whether you can claim anything at all.

Work-related — you move because of a new job, you are transferred, or your journey to work becomes much shorter. Such moves count as Werbungskosten
Private reasons — a growing family, a bigger or smaller flat, a move to another city for personal reasons. Household-related services (haushaltsnahe Dienstleistungen) apply here, but only in part
For health reasons — can qualify as extraordinary expenses (außergewöhnliche Belastung); the Finanzamt examines this case by case

The difference is considerable in practice. For a work-related move it is about the moving costs as such; for a private one, only about a share of the labour costs — materials and travel costs stay out.

This is not tax advice

We are a crew that does renovation work and house moves, not tax advisers (Steuerberater) — we are not allowed to give help in tax matters. What is written here is the general framework. What applies in your case and in what amount, clarify with a tax adviser or a Lohnsteuerhilfeverein (income tax assistance association for employees).

What usually counts for a work-related move

For a work-related move the actual expense is generally accepted, if it is documented. In addition there is a flat-rate allowance for other moving expenses (sonstige Umzugsauslagen), the amount of which the Federal Ministry of Finance (BMF) adjusts regularly — the current figure is in the BMF-Schreiben (the ministry’s circular) in force at the time, and that is exactly why we do not give one here: it would be wrong next year.

Transport of household goods by a removal company, with an invoice
Journeys between the old and the new flat
Double rent during the transition period, within certain limits
Estate agent’s fees for the new rented flat — not when buying
Costs of looking for a home, such as journeys to viewings
Tutoring for children because of a change of school, within certain limits

What is not accepted, on the other hand, is anything that increases the value of your property: new furniture, a new kitchen, renovating the new flat beyond what is necessary. The Finanzamt draws the line, and it is not always obvious — here too it is worth asking an adviser.

What works for a private move

For a private move, household-related services (haushaltsnahe Dienstleistungen) apply. Only the labour cost (Arbeitslohn) is expressly eligible for relief — that is, what you pay for the time the people work, not for materials, boxes or the vehicle.

Eligible: labour costs of the moving helpers, loading and unloading, assembly
Not eligible: moving boxes, packing material, hire car
Not eligible: travel costs and call-out charges
The service must be provided in the household — the transport in between is the point of dispute, which the Finanzamt handles differently

That is why splitting the invoice matters so much for a private move. If it shows only one sum, the Finanzamt cannot see which part is eligible — and, if in doubt, strikes out everything.

The invoice: what has to be on it

The most common reason moving costs are not accepted is not the move itself, but the invoice. Three things decide.

What makes an invoice usable

Labour costs shown separately, as a line of their own
Materials, vehicle and travel separately from that
Full address of client and company
Date and place of the service
VAT (Umsatzsteuer) shown correctly

What makes it fail

Only a total sum without a breakdown
Cash payment — without a bank transfer nothing is accepted
A receipt instead of an invoice
No statement of what exactly was done
Invoice in a name other than the taxpayer’s

The cash payment is where it fails most often. The payment must go to the account of the service provider and be provable — a bank statement (Kontoauszug) belongs with the return. Anyone who pays in cash may save on the quote and lose the deduction.

How we write the invoice

We write the invoice from the start so that it can be used at the Finanzamt — without your having to ask. Labour costs are a line of their own, vehicle and travel separately from that.

289 €2 movers + van, 3 hours

25 €/hrMoving helper, per person

30 €/hrDriver with a van

Helpers’ working time — shown as labour costs
Vehicle and travel — separate line, no travel charge within 50 km of Leipzig
Assembly and dismantling of furniture — a line of its own
Payment by bank transfer; we do not offer cash payment for such jobs

If you know you want to deduct the move, please tell us when we work out the quote. Then we make sure the lines are written the way you need them — rewriting an invoice afterwards is much more awkward.

What to keep, and for how long

The Finanzamt does not automatically demand the receipts with the return, but it can ask for them later. Anyone who then does not have them loses the deduction retrospectively. So collect everything in one place from the start — easiest in a folder set up before moving day.

Invoice from the removal company with labour costs shown separately
Bank statement showing the transfer — it is the real proof
Old and new tenancy agreement (Mietvertrag), as proof of the move itself
Registration certificate (Meldebescheinigung) from the Bürgerbüro (citizens’ office)
For a work-related move: employment contract, letter of transfer or confirmation from the employer
Receipts for journeys to look for a home and for the handover

On keeping records: private individuals are not generally obliged to keep receipts for years, but as long as the tax assessment (Steuerbescheid) can still be changed, they should be to hand. In practice that means: at least until the assessment is final (bestandskräftig), preferably a few years longer.

Often something is still possible retrospectively — returns for past years can be submitted late within certain deadlines. Whether that works for you and for which years, a tax adviser or a Lohnsteuerhilfeverein can tell you.

The five most common mistakes

Almost everything that goes wrong with moving costs comes down to a handful of mistakes — and all five happen before the move, not at the tax return.

Paid in cash. The classic. No transfer, no deduction, however tidy the invoice looks
One sum on the invoice. If it only says “Move, lump sum”, the Finanzamt cannot see which part is eligible
Invoice in the wrong name. It must be made out to the person who claims it in the return
Only a receipt. A receipt is not an invoice and is not enough
No evidence of the reason. For a work-related move the Finanzamt wants to see why it was necessary

Avoiding all five costs nothing if you think of it beforehand, and afterwards they can hardly be repaired. So here is the one practical piece of advice we can give: tell the company before you book that you want to deduct the move.

Who else may pay for a move

Besides the Finanzamt, there are bodies that cover a move in whole or in part. Whether that applies to you, find out from them — we only say what is usually required.

Jobcenter — if you receive Bürgergeld (basic income support), with prior approval (Zusicherung) before signing the contract and, as a rule, three cost estimates (Kostenvoranschläge). For this we have a separate page
Employer — for a transfer, often against two or three quotes
Pflegekasse (long-term care insurance fund) — for a move connected with a care grade (Pflegegrad), grants towards adapting the home may be considered
Beihilfe — for civil servants (Beamte) in the case of service-related moves

What they all have in common: they want a written quote in advance and a proper invoice afterwards. You get both from us anyway.

Our prices

Labour costs are shown separately on the invoice. All prices are net, plus statutory VAT (Umsatzsteuer):

Package: 2 movers + van, 3 hours	289 €
Moving helper, per person	25 €/hr
Driver with a van	30 €/hr
Loading and unloading only	12 €/m³
Dismantling and assembling furniture	35 €/hr
Travel up to 50 km	included

Questions & answers

Frequently asked questions about moving and tax

Are moving costs tax deductible?

In principle yes; the extent depends on the reason. Work-related moves count as Werbungskosten, private moves partly as household-related services (haushaltsnahe Dienstleistungen). What applies in your case, clarify with a tax adviser or a Lohnsteuerhilfeverein — we are not allowed to advise on this.

What is eligible for relief for a private move?

Only the labour cost, that is the helpers’ working time. Moving boxes, packing material, vehicle and travel are not included. That is why the invoice must show the labour costs as a line of their own.

Is a receipt or a cash payment enough?

No. An invoice is needed, and payment must be made by bank transfer and be provable with a bank statement. Cash payment rules out the deduction — it is the most common reason why the Finanzamt strikes it out.

What has to be on the invoice?

Labour costs separate from materials and vehicle, full addresses of client and company, date and place of service, VAT shown correctly. And the invoice must be made out in the name of the person who claims it in the return.

How much is the moving-cost allowance (Umzugskostenpauschale)?

The flat-rate allowance for other moving expenses is adjusted regularly; the current amount is in the BMF-Schreiben in force at the time. We deliberately give no figure here, because it quickly goes out of date — ask your adviser or check with the Federal Ministry of Finance (Bundesfinanzministerium).

Do you issue an invoice the Finanzamt accepts?

Yes, as standard: labour costs as a line of their own, vehicle and travel separate from that, payment by bank transfer. Tell us when we work out the quote that you want to deduct the move — then the lines are right from the start.

Does the Jobcenter pay for a move?

If you receive Bürgergeld, it can cover the costs. What matters is the prior approval (Zusicherung) before the new tenancy agreement (Mietvertrag) is signed and, as a rule, three cost estimates. We have a separate page with the procedure.