Craftsmen's tax bonus for holiday homes

Private customers can deduct labor costs for almost all home and yard renovations from their taxes. Since the beginning of 2009, this has amounted to up to €1.200 per household.

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

What many people don't know: This also applies to tradesmen's work on your own holiday home abroad. What requirements apply.

Imagine this: You have a house in Denmark, or even Mallorca, and you want to have the living room and kitchen painted again. You hire a local tradesman, receive a hefty invoice, and then pay the bill. Can you deduct the costs from your taxes?

Yes! Because whoever Tax bonus for his holiday home can do so under certain conditions: He must either have unlimited subject to tax in Germany If he has his permanent residence in Denmark or on the Spanish island, he can also claim the 1.200 euros - if he earns taxable income in Germany. Regulation affects the entire European UnionConversely, this also applies to all foreign nationals from the European Union who wish to benefit from the craftsman's bonus in Germany or their home in their EU homeland.

Otherwise, the same rules as in Germany must be observed: 20 percent of labor costs, machine costs and, if applicable, travel costs of a maximum of 6.000 euros, i.e. up to 1.200 Euro, per year can be deducted directly from the tax liability. Only the Material costs are left out.

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Keep receipts and do not pay in cash

For craftsmen’s services that are not renovation work but are carried out in the household (such as apartment cleaning or window cleaning), you can additionally the tax bonus for craft services This amounts to another 1.200 euros per year (20 percent of 6.000 euros)

It is especially important that the invoice and a transfer receipt are kept, because The tax office does not recognize cash paymentsThis practice was supported by a Judgment of the Federal Finance Court confirmed (Federal Fiscal Court, Ref. No.: VI R 14/08). While the receipts do not need to be sent directly to the tax office with the tax return, they must be available to the tax authorities upon request.