Craftsmen's bonus in Austria is being adjusted

The craftsmen's bonus in Austria now also applies when employing companies from Germany. Following a complaint to the EU by the Chamber of Crafts and Skilled Trades for Munich and Upper Bavaria, the regulation was amended.

This article is part of the special topic Tax bonus for tradesmen's invoices: What you should know

To stimulate demand for skilled trades services in Austria, the Austrian federal government has been paying a craftsman's bonus since mid-2024: It provides a subsidy of 20 percent of the labor costs incurred in connection with private residence in Austria. For the years 2024 and 2025, the neighboring country will provide Craftsman bonus A total of 300 million euros in funding is available.  

The bonus was up to 2.000 euros in 2024. In 2025, it will be capped at 1.500 euros. However, so far, it has only been available to customers who commissioned a company with a headquarters or branch in Austria, reports the Chamber of Crafts for Munich and Upper Bavaria, which will officially Complaint to the European Commission had lodged.

Successfully: "The persistent representation of interests for our member companies has paid off. The Austrian Parliament, with reference to our complaint, has amended the law and Subsidy extended to all craft businesses within the EU and the European Economic Area (EEA)", reports Managing Director Dr. Frank Hüpers.

Great order potential for companies in the border region

The Chamber of Skilled Crafts for Munich and Upper Bavaria reports that it conducts approximately 300 business consultations per year regarding service provision in Austria. However, there are also companies that operate in the neighboring country without prior consultation or are advised by another Bavarian Chamber of Skilled Crafts.

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The potential in the border districts lies in several thousand construction and renovation companies that could work in Austria. Following the entry into force of the amendment to the law, Austrian customers who commission a German trades company will now also receive the craftsman bonus. "This means our companies will no longer be disadvantaged compared to their Austrian competitors," emphasizes the managing director.

Source: Chamber of Crafts for Munich and Upper Bavaria

Tip:  In Germany, it's no problem to hire an Austrian, Dutch, or Polish tradesman. Here, you can also claim the tax bonus of 20 percent of labor costs up to a maximum of €6.000 (a total of €1.200) if the tradesman is from another EU or EEA country, or if you have your vacation home renovated in another EU country by local companies.

What about the holiday home in Switzerland? Another question is currently occupying the courts: Can Germans who own a house in Switzerland also deduct tradesmen's costs from their taxes? The Cologne Finance Court says yes. The European Court of Justice now has to settle the matter definitively. Read more here 

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