(2025)
What is the relocation allowance?
If you move for work-related reasons, you can deduct moving expenses as income-related expenses or have them reimbursed tax-free by your employer. Moving expenses 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 for other moving expenses.
The Federal Ministry of Finance (BMF) regularly increases the moving allowance, most recently on 01.03.2024 (BMF letter dated 28.12.2023, IV C 5 – S 2353/20/10004:003).
There is one detail you should be aware of: For moves, the day before the removal goods are loaded is decisive for calculating the allowances.
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 with the move.
- Professional assembly and disassembly of lights, fitted kitchens, and other electrical appliances.
- Professional installation and alteration of curtains, blinds, and their fittings.
- Re-registration fees.
- Advertisements for house-hunting.
- Costs for cosmetic repairs in the old flat, provided you are contractually obliged to cover them (but not cosmetic repairs in the new flat, as these are privately incurred).
If children require tutoring after a work-related move, the costs can be deducted as income-related expenses up to a maximum amount. This maximum amount is also increased.
