SteuerGo FAQs

(2022) Which measures are subsidised as craftsmen's services and what is the amount of the tax reduction?

As part of the craftsmen's services, all expenses for renovation, maintenance, and modernisation measures for the home used for own residential purposes are eligible. These include, for example:

• Work on interior and exterior walls,
• Work on the roof, facade, garages, etc.,
• Repairs or replacement of windows and doors,
• Painting, repairs, and replacement of doors, windows (inside and outside), fitted cupboards, fitted kitchens, radiators and pipes,
• Repairs and replacement of floor coverings (e.g. carpets, parquet, tiles),
• Repairs, maintenance, or replacement of heating systems, electrical, gas, and water installations by electricians and plumbers,
• Modernisation work in the bathroom,
• Repairs and maintenance of household items (e.g. washing machine, dishwasher, cooker, television, personal computer),
• Garden design measures (e.g. paving work, new garden layout),
• Paving work on the residential property,
• Inspection work (e.g. chimney sweep, lightning protection, fire extinguishers and alarms).

An exemplary list of eligible and non-eligible household-related services and craftsmen's services can also be found in the BMF letter dated 09.11.2016.

Expenses for craftsmen's services – only for wages, travel, and machine costs – are deductible from the tax liability up to 6,000 Euro at 20 percent, a maximum of 1,200 Euro per year.

Not eligible are craft activities as part of a new construction measure. The term "new construction measure" has been redefined since 2014: According to the new legal opinion, all work related to the construction of a household until its completion is considered a new construction measure. This means: All work in an existing household is now tax-privileged. If new living or usable space is created as a result, this no longer matters. This new definition applies retroactively to all still open tax cases since 2006.

Previously, new construction measures included all measures related to the creation or expansion of usable or living space, e.g. new construction, extension, expansion, or an increase in height, as these always involved an expansion or creation of usable or living space.

For craftsmen's services by public authorities, which benefit not only individual households but all households involved in the public authority's measures, a benefit under § 35a EStG is excluded. There is no spatial-functional connection of the craftsmen's services with the household of the individual property owner. This concerns, for example, the expansion of the general supply network or the development of a road (BMF letter dated 1.9.2021, IV C 8 - S 2296-b/21/10002 :001).

 

The Federal Fiscal Court has currently refused the tax reduction under § 35a EStG for static calculations by a structural engineer. This also applies if the static calculation was necessary for the execution of a craftsman's service (BFH judgment of 4.11.2021, VI R 29/19).