(2025)
Are cash payments to relatives abroad tax-deductible from 2025?
Maintenance payments to dependent relatives abroad can be claimed as special extraordinary expenses in accordance with § 33a para. 1 EStG up to a specified maximum amount. A reasonable personal contribution is not deducted in this case.
Previously: Cash payments during family visits possible
Until 2024, the deduction of cash maintenance payments was also possible if the money was personally delivered during a family visit. A family visit occurs when a taxpayer maintains a family household abroad where the spouse also lives. Visits to children or parents living abroad do not count as family visits (BMF letter dated 06.04.2022, BStBl 2022 I p. 623, para. 18).
For family visits, proof was simplified: cash payments did not have to be individually proven if a maximum of one net monthly salary was handed over per visit. A sum up to four times this monthly salary per year, minus other maintenance payments made and proven, was eligible. However, the trip always had to be documented – e.g. with tickets, fuel receipts, visas or border crossing documents (BFH ruling dated 04.08.1994, BStBl 1995 II p. 114; BMF letter dated 06.04.2022, para. 20).
From 2025: Only bank transfers eligible
Since 01.01.2025, maintenance payments are only deductible if they are made by bank transfer to the recipient's account (§ 33a para. 1 sentence 12 EStG, introduced by the Annual Tax Act 2024). Cash payments – even during a family visit – are no longer recognised for tax purposes.
Exceptions are only possible in special hardship cases, such as war-related restrictions or lack of banking infrastructure in the recipient's country of residence. In such cases, the tax office may exceptionally recognise other payment methods based on an administrative regulation and general principles of equity.
Important: Those affected must credibly demonstrate the special circumstances and contact the relevant tax office at an early stage. An informal application for recognition of the maintenance payment despite the lack of a transfer must be submitted there, accompanied by suitable evidence of the situation in the country of residence (e.g. official confirmations, situation reports, statements from international organisations).
