(2021) What costs are covered by the relocation allowance?

If you move for work-related reasons, you can deduct the moving expenses as income-related expenses or have them reimbursed tax-free by your employer. These include transport costs, travel expenses, double rent payments, estate agent fees for a rented flat, and other moving expenses.

While the aforementioned costs can be deducted in the amount proven, other moving expenses can be claimed with a flat rate - the so-called flat rate for other moving expenses, also known as the moving expense allowance.

The Federal Ministry of Finance has recently increased the moving expense allowances for work-related moves on 01.03.2020 and again on 01.04.2021 (BMF letter dated 21.07.2021, IV C 5 - S 2353/20/10004).

The moving allowance covers

• Tips for the removal men and other helpers. This also includes, for example, inviting your friends to a meal as a thank you for their help after moving furniture.
• Professional assembly and disassembly of lights, fitted kitchens, and other electrical appliances.
• Professional installation and alteration of curtains, drapes, blinds, and their fittings.
• Fees for re-registration.
• Advertisements for house hunting, etc.
• Costs for cosmetic repairs in the old flat, provided you are contractually obliged to undertake them (but not cosmetic repairs in the new flat, as these are privately incurred).