Deductible expenses for expatriates and foreigners in Germany

There are many possibilities for expatriates and foreigners working in Germany to save taxes especially when the spouse and the children are living abroad. Generally, the majority of deductions can be divided into the following three areas:

• Business expenses
• Special expenses
• Extraordinary expenses

Typical business expenses for employment income for expatriates

• Commuting expenses from home to workplace
• Double household related costs(expenses for the flat in Germany, broker fees, flight and travel costs from Germany to the home country and back, telephone costs, allowance for additional meal expenses (maximum of 24 € per day) for the first three months)
• Relocation expenses
• Training and professional literature expenses
• Expenses for professional equipment

Deductible special expenses

• Church tax
• Donations
• School fees
• Pension insurance contributions
• Health care, liability and accidence insurance contributions

Deductible extraordinary expenses

• Medical expenses
• Support of relatives
• Lump sum for disabled taxpayers