Deductions

The German income tax law enables its tax payers to deduct a fair amount of their costs. Deductible expenses allowed for business purposes are any income related expenditures for which a standard deduction of 1,000 € is granted. Any amount claimed in excess of 1,000 € must be proven and includes cost of travel between home and place of work, private office in the home used for business purposes, expenses for maintaining double households and for professional books and periodicals.

Children up to the age of 18 (in some cases up to the age of 26), childcare and education are all deductible from you tax return. A tax consultant can advise you more about other ways to save on your tax payments.