As an Expat living in Germany, you can Claim Remittance money sent to Parents from Germany to your home country in your Tax Return. Yes, this is a tax-deductible expense. But the act of simply sending money to Someone isn’t enough for the Tax office (Finanzamt) to consider your expense.
You need to provide sufficient proof of your claims. Just follow the steps I have mentioned in this guide to Claim Remittance Money Sent to Parents from Germany in a Tax Return!
What you will learnThe Maximum Claimable Amount is identical to the basic tax-free allowance and changes each year.
You can get this here or by going to this link then
Click Formular A-Z Go to the section U Click the Unterhaltserklärung zweisprachig Document.
To make your case even stronger in order to Claim money sent to Parents from Germany in Tax Return you can also provide any other document that can prove that the maintained person is in fact needy.
you have been so helpful, vielen vielen dank.
Hi Ahsan, thanks for the article.
But one question.
If my total salary is 80k euro per year. So my max claimable amount is = total amount given to parents -6%of 80k i.e. 4800 eur per year.
And acc to the other section max claimable amount is 2500 euro per person. Does this mean i can only claim 100 euro per person in my case even if i send 5000 ?
I think what he/she is saying is that you can only claim money send above a certain limit which varies with one`s pay (in your example 15000 Eur). This person`s salary is 80, 6% of which is 4800 which means the claimed amount will be the difference between the actual amount sent and 4800. Taking example of Pakistan where you can only claim 2500 Euros approx per person, this means if this person sends 2500 Euros each to 2 people in Pakistan, he has sent a total of 5000. As a result he will be able to claim just 200 Euros according to your explanation.
Yes, this is the jist of it. But I have updated the article to include some additional parameters like Married, Unmarried, with children so that the calculations could be done on those factors too
Dear Ahsan, Thank you very much for your efforts.
Can you please help to how to Prepare parents support forms attested from Union Council + Notary Public. Regards
Oweas
Hi Ahsan,
Thank you for a great article.
Can you please answer if I understand correctly this example:
– gross income 80k
– max claimable amount, country from 2nd group: 7.5k
– non-claimable amount: 0.06*80 = 4.8k
– final deductible amount: 7.5-4.8 = 2.7k In case of supporting second recipient, from another household – does 6% non-claimable amount apply also for him? Or it’s a one-time 6% for sum of all supported persons?
In other words: 7.5+7.5-4.8 or 7.5-4.8+7.5-4.8 ?
Thank you for the detailed post. My home country is in category three meaning that the maximum claimable amount for 2022 is 4,974€/yearly. What I did not understand well was the part relared to my income (5% or 6%). I gain 72k yearly gross and 57k net. Does this influence to the amount I can claim or get back? Thank you.
To Esi,
Can you explain how to get 57k net on 72k gross income. I have tax class 3 and a 4 years old child. With same salary I get roughly 49k net. Maybe Ahsan you can help which tax class or what measures increases net salary
Dear Ahsan, I appreciate you for the effort you put in searching, collecting, summarizing and posting all the useful information to the single online platform. Kind regards,
Ali Raza
Hi Ahsan, I was wondering if you could recommend an App for the Tax Refund, in which I can also include my remittances to my spouse and mother back home. Thank you in advance. 🙂
Hallo, someone told me I can claim one flight ticket for travel to my home country. Do you know if this is true?
Hi, Many thanks for detailed article. I would like to know if 11604 Euros are non taxable or its fully refunded by the government of Germany.
My scenarios is 58k salary and I sent 11k as total in 2023 in monthly transactions of 800-900. How much of this 11k can I get back ? I have tax class 4. Many thanks
This amount would be adjusted against your taxes. So lets assume if the whole 11k is accepted (the accepted amount depends on your situation as mentioned in the article), then your income tax would be calculated at a salary of 47k instead of 58k.
At Ahsan Finance, my mission is to empower individuals in Germany to achieve financial freedom. Through educational resources, I aim to inspire and equip expats in Germany with the knowledge and tools needed to make informed financial decisions and achieve their dreams.