(2023)
Which measures are subsidised and what is the amount of the tax reduction?
As part of household-related services, the work must have been carried out by a self-employed service provider or service agency. Eligible services include, for example:
- cleaning the flat, window cleaning, cleaning the stairwell and other communal areas,
- garden maintenance (e.g. mowing the lawn, trimming hedges),
- services for private moves (minus reimbursements from third parties).
An exemplary list of eligible and non-eligible household-related services and tradesmen's services can also be found in the BMF letter dated 11.09.2016.
The expenses for household-related services provided by self-employed service providers are directly deductible from the tax liability, up to 20,000 Euro at 20 percent, maximum 4,000 Euro per year.
As a rule, a prerequisite for the deduction of costs is that they are related to your own household. However, various activities are carried out both on private property and on public land, or they benefit the private household at least indirectly, even if they primarily concern the public area. These include, for example, pavement cleaning or snow clearing.
- In 2014, the Federal Fiscal Court ruled that snow clearing on public pavements is considered a privileged household-related activity. The costs for winter services in front of your own property are therefore deductible at 20 percent from the tax liability (BFH ruling of 20.3.2014, VI R 55/12). According to the BFH judges, services are related to the household if they are provided "in the spatial area of the existing household". This includes the flat as well as the associated land. Therefore, the term "household" is to be interpreted spatially-functionally.
- In 2020, however, the BFH ruled that expenses for street cleaning in front of the property are not tax-privileged as household-related services according to § 35a para. 2 sentence 1 EStG (BFH ruling of 13.5.2020, VI R 4/18).
- Currently, the Federal Ministry of Finance has published the following brief overview in line with the BFH (BMF letter dated 1.9.2021, IV C 8 - S 2296-b/21/10002 :001):
As a rule, a prerequisite for the deduction of costs is that they are related to your own household. However, various activities are carried out both on private property and on public land, or they benefit the private household at least indirectly, even if they primarily concern the public area. These include, for example, pavement cleaning or snow clearing.
- In 2014, the Federal Fiscal Court ruled that snow clearing on public pavements is considered a privileged household-related activity. The costs for winter services in front of your own property are therefore deductible at 20 percent from the tax liability (BFH ruling of 20.3.2014, VI R 55/12). According to the BFH judges, services are related to the household if they are provided "in the spatial area of the existing household". This includes the flat as well as the associated land. Therefore, the term "household" is to be interpreted spatially-functionally.
- In 2020, however, the BFH ruled that expenses for street cleaning in front of the property are not tax-privileged as household-related services according to § 35a para. 2 sentence 1 EStG (BFH ruling of 13.5.2020, VI R 4/18).
- Currently, the Federal Ministry of Finance has published the following brief overview in line with the BFH (BMF letter dated 1.9.2021, IV C 8 - S 2296-b/21/10002 :001):
