Are you eligible for double household tax relief while contracting in Germany?

As a contractor who works internationally you are probably used to leaving your home, family and friends behind for lengthy periods and whilst this isn’t the best side of contracting, there are a few extras that you can be entitled to in certain countries. When taking on a long-term contract in another country there are many factors to consider, one of them being accommodation. Hotels and B&B’s can work out very expensive when on a long-term contract and you therefore may look at the rental market close to your place of work. Read more what applies to you when contracting in Germany!

Double Household Rebate for contractors Germany

If you have accepted a contract in Germany for a long-term project and you are leaving behind your home and family then you may be entitled to a double household rebate (Doppelhaushalt) if you decide to rent accommodation close to work.

If you contracting in Germany and running two households you can deduct costs from your taxable income, if those costs are work related i.e. you have your main household in one country whilst you are working in another and you also rent accommodation close to your place of work.

Contractor

Requirements for Double Household Rebate

The good news is that both married and single people can be eligible for the double household rebate, so long as you can prove that you keep your “centre of life” in your home country. For this you will need:

  • Proof of ownership/rent of a second house outside of Germany
  • A rental agreement to prove payment of rent in Germany.
    • You may need to back this up with receipts or bank statements
  • Flight tickets:
    • As a foreign employee, you will need to travel home frequently to prove that your “centre of life” is in your home country.
    • For employees living in the EU you should make at least 6 trips home per year,
    • Outside of the EU and further destinations may only require 1 trip home.

How can WNIC help?

So if you have accepted a long term contract in Germany and would like more advice on the double household tax relief, other allowances you can possibly claim in country and a full breakdown on what your salary would look like, please give our WNIC team a call on 00356 20106000.

Sarah Smith
Head of International Contracting