(2025) Maintenance payments to relatives abroad: Strict proof requirements apply!

Those who provide financial support to relatives abroad must provide extensive evidence to the tax office. Since 2007, particularly strict requirements have applied, both for documenting the payment and proving the recipients' need.

Example: Case Rejected by the BFH

In a recent case, the Federal Fiscal Court (BFH) rejected the tax deduction of 5.000 Euro paid by a son living in Germany to his parents in Indonesia. The proof of need was insufficient: the certificates provided contained no information about previous income or the parents' financial situation. According to the BFH, such documents must contain comprehensive information, such as income before the start of support or existing assets like property ownership.

Requirements for Proof of Need

The tax office only accepts certificates if they are complete and detailed. These include in particular:

• Details of income before the start of payments
• Information on the current financial situation
• Exclusion of all relevant income (not just pensions or salaries)

Missing information regularly leads to the rejection of recognition as an extraordinary burden.

Exception: Evidence Relief in Special Circumstances

However, the BFH emphasises that the evidence requirements must be reasonable and feasible. In exceptional circumstances – such as war or lack of administrative structure in the country of residence of the supported person – relief may be granted.

Special Feature for Family Visits

Cash payments during family visits are subject to relaxed evidence requirements:

• If you hand over cash during a visit (e.g. to your family abroad), you do not need to provide detailed proof of the amount – as long as the amount per visit does not exceed a net monthly wage.
• A maximum amount of four net monthly wages per year, minus other payments, is eligible.
• Important: The journey itself must be proven – e.g. through flight tickets, fuel receipts, or visas.

New Rule from 2025: Only Transfers Allowed

From 01.01.2025, a new legal requirement applies:
Maintenance payments abroad are only deductible if they are transferred to the recipient's account.

This regulation was introduced by the Annual Tax Act 2024 (§ 33a para. 1 sentence 12 EStG) and affects all monetary donations. Cash payments – even during family visits – will no longer be recognised.

Note on Administrative Regulations in Exceptional Situations

In exceptional cases, e.g. in the event of war or humanitarian crises, the tax authorities may allow simplified evidence based on general principles of equity.