Most of the expats working in Germany would have transferred some amount of money to their family in their home country. In such cases, did you know that this money could be accounted in the tax return process and you can get back the tax contribution for it?.

If not, we will give a quick intro about “Anlage Unterhalt”.

Basically, the monetary support given to your family such as your mother, father, grandparents or other beloved relatives back in your home country when you are working in Germany, can be accounted for in the tax return.

Who can be supported?

• Parents
• Kids
• Spouse/Ex-Spouse

How much can be claimed in the tax return?

The tax office has categorized countries in four groups. Based on which group your home country is a part of, you get different returns.  

For the countries belonging to Group 1, up to 8820 Euros are considered, for Group 2 – 6615 Euros, Group 3 – 4410 Euros, and Group 4 – 2205 Euros. Check here to find the exact group of your home country.

How?

• Fill in the “Unterhaltform” which is available as a supplementary form while tax declaration.
• The form has four pages, one the first page you have to mention your relationships with the supported person and get it approved (authorized) by relevant authority in home country.
• In the other pages, you have to mention the income coming in (if any) for the members, their assets, pensions, etc.
• One separate form for each year and for each person supported has to be submitted.
• All the forms have to be authorized officially from the home country.
• Attach the details of the transfer (for example, receipt from online money transfer sites/apps and the bank account details of the supported person.

Tips!

• You have to take into consideration when you are actually doing the first transfer.
• Every month, only an equivalent of (Total amount)/12 will be considered. If you transfer 8820 euros in the month of July, then only 44100 euros will be taken into consideration (as you have not supported the person for the first 6 months). Always, the time of the first transaction is taken into consideration.
• It is wise to send it quarterly or even annually, but at the beginning of the year.
• You can support up to a certain number of persons but each of them should live in a separate household, and should not have other income in the home country.

Note: The tips and info shared in the article are only based on personal experiences of our buddies and not to be considered as expert, legal or professional advice. Please consult the relevant advisor, Finanzamt or expert during your tax return as it varies for every individual cases.

Other references: berlin.de, elster.de, steuren.de