Which measures are subsidised as craftsmen's services and what is the tax reduction?

As part of the tax incentives under § 35a EStG, certain tradesmen's services for renovation, maintenance, and modernisation measures in a self-used flat or house can be tax-deductible. The subsidised measures include, for example:

Examples of subsidised tradesmen's services

• Work on interior and exterior walls (e.g. painting or wallpapering)
• Work on the roof, facade, and garages (repairs, modernisations, maintenance)
• Repair or replacement of windows and doors (interior and exterior, incl. fitted cupboards, radiators, and pipes)
• Repair or replacement of floor coverings (carpet, parquet, tiles, etc.)
• Repair, maintenance, or replacement of heating systems, electrical, gas, and water installations
• Bathroom modernisations (e.g. installation of new sanitary facilities)
• Repairs of household appliances (washing machines, dishwashers, cookers, TVs, PCs)
• Garden design measures (e.g. paving work, new garden layout)
• Inspection work (chimney sweeps, lightning protection technicians, maintenance of fire extinguishers or smoke detectors)

A detailed list of subsidised tradesmen's services can be found in the BMF letter dated 09.11.2016.

Tax reduction for tradesmen's services

• The tax reduction amounts to 20% of the labour costs, travel costs, and machine costs.
• A maximum of 1.200 Euro per year can be deducted directly from the tax liability. For this, the tradesmen's costs may not exceed 6.000 Euro.
• Only labour, travel, and machine costs are eligible, not material costs.

Limitations and special regulations

• New construction measures: Tradesmen's services in the context of new construction measures are not eligible. This includes all work up to the completion of a household. This means: all work in an existing household is now eligible for tax relief. 
• Measures by public authorities: Tradesmen's services by public authorities that benefit several households (e.g. road construction) are not eligible for tax relief (BMF letter dated 1.9.2021).

Current case law on the subsidisation of advance payments

The Fiscal Court of Düsseldorf ruled in the judgment of 18 July 2024 (Ref.: 14 K 1966/23 E) that advance payments can generally be recognised as eligible expenses. However, the advance payment must be made at the request of the service provider. Voluntary advance payments "into the blue" are not considered.