Can I also claim the tax reduction as a tenant?
Yes, because you do not need to be the owner of the flat to claim the expenses.
Taxpayers who wish to claim tax reductions for household services or tradesmen's services do not need to be the client of the measure carried out. Therefore, tenants can also claim costs for services commissioned by the landlord and paid by them as part of the service charges.
If the landlord has commissioned household services and tradesmen's services, tenants can claim the amounts paid for service charges as tax reductions, also within the specified maximum amounts.
With the service charge statement for the flat, you can save a significant amount of tax, as many items can reduce the tax burden as household services or tradesmen's services. For service charges, this mainly concerns the items
- Garden maintenance
- House cleaning
- Caretaker activities
- Chimney sweep fees
- Lift maintenance.
To claim the tax benefit at the tax office, the tenant needs a certificate from the landlord containing the relevant details. The usual service charge statement is generally not sufficient for this. However, tenants have a legal right to such a certificate.
Note: If you are renting, you can also claim tax benefits for household employment or tradesmen's services if you have commissioned them yourself and they were carried out in your flat.
The Federal Fiscal Court (BFH) recently clarified that tenants can claim expenses for household services and tradesmen's services in accordance with § 35a EStG for tax purposes, even if they have not concluded the contracts themselves (BFH ruling of 20.04.2023, VI R 24/20). If the tax office requests corresponding proof, it is advisable to request a certificate from the landlord in accordance with Appendix 2 of the BMF letter dated 9.11.2016.
If the landlord refuses to issue the certificate or requests additional proof, such as tradesmen's invoices, the tenant can invoke their right to inspect documents in accordance with § 259 (1) BGB. According to the constant case law of the Federal Court of Justice, the tenant is allowed to inspect, photograph, scan or copy the documents. For price-controlled housing, § 29 (2) sentence 1 of the Regulation on the Determination of the Permissible Rent even permits the making of copies against reimbursement of costs (BGH ruling of 8.3.2006, VIII ZR 78/05).
Can I also claim the tax reduction as a tenant?
What evidence is required for tax reduction under section 35a of the Income Tax Act?
To claim the tax reduction under § 35a EStG (household services, craftsmen's services and care expenses), certain conditions and evidence must be met.
1. Invoices and proof of payment
The service provider must issue a proper invoice, with labour and material costs listed separately. Only labour, machine and travel costs, and the VAT on these, are eligible. Payment must be made by bank transfer; cash payments are not recognised.
2. Household services and care expenses
Household services include not only traditional tasks such as cleaning or gardening but also home care for people in need of care. Since 2009, no proof of the care level is required.
3. Missing service charge statement
If you have not yet received the service charge statement for the current tax year, you can submit the previous year's statement. The year the statement is received counts.
4. Court rulings on care costs
BFH ruling of 3 April 2019 (residential care not deductible, ref.: VI R 19/17)
The Federal Fiscal Court ruled in 2019 that only costs for one's own care or accommodation in a home are deductible. If children cover the costs for their parents' residential care, this is not tax-deductible.
Ruling of the Berlin-Brandenburg Fiscal Court of 11 December 2019 (outpatient care deductible, ref.: 3 K 3210/19)
The Berlin-Brandenburg Fiscal Court ruled that costs for outpatient care of relatives are deductible if the care takes place in the taxpayer's household.
BFH ruling of 12 April 2022 (outpatient care deductible, residential care still not deductible, ref.: VI R 2/20)
The BFH ruled in 2022 that outpatient care in the parents' household is also deductible if the child is contractually obliged. Costs for residential care remain non-deductible for tax purposes.
What evidence is required for tax reduction under section 35a of the Income Tax Act?
Which expenses are eligible?
Eligible expenses include gross wages or salary (for "mini-jobs") and the social security contributions paid by the employer, wage tax including the solidarity surcharge and church tax, accident insurance contributions, and levies under the Expense Reimbursement Act (U 1 and U 2).
Which expenses are eligible?
Requirements for all tax reductions
The service must have been performed in the taxpayer's household. This condition is not met, for example, in the case of
- care and support for sick, elderly, and dependent persons in a day care facility,
- repair of household items at the repair company's premises,
- waste collection (the processing or disposal of waste takes place outside the household)
The household must be located in the European Union or the European Economic Area. If the taxpayer's expenses relate to several households (e.g. main residence and holiday home), the maximum amount is deductible only once in total.
Not eligible are expenses that have already been taken into account for tax reduction under other provisions of the Income Tax Act as business expenses, income-related expenses, special expenses, or extraordinary burdens.
Special feature for homeowners: Homeowners who use their own property receive the tax reduction even if the community or the administrator is the employer or client. This is done proportionally according to their co-ownership share.
The costs for waste collection cannot currently be considered as a household-related service in your tax return. This is based on a ruling by the Cologne Fiscal Court on 26 January 2011 (4 K 1483/10, EFG 2011 p. 978 no. 11).
The reason for this is that the main service is not provided within your property boundaries. The actual service is not the collection of the waste, but its subsequent disposal and processing. The emptying and transport of the waste are considered supporting activities. The Münster Fiscal Court recently confirmed this view (ruling of 24 February 2022, 6 K 1946/21 E). However, an appeal was rejected for procedural reasons, not on substantive grounds. This means that the issue has not yet been definitively clarified.
Requirements for all tax reductions
