Tax Return Filing(FAQs)

The chances of getting a tax refund depend on several factors. As explained in the German income tax system, you may be eligible for a refund under the following conditions:

• You have business expenses (Werbungskosten) exceeding EUR 1,000 per year.

• You worked only a few months in Germany and the rest of the year in other countries where your income was lower (Global Income).

• You have provided financial support to your dependents (parents, spouse, child, etc.), making you eligible for a deduction (Unterhalt).

• You changed your tax class during the year due to getting married (Tax Class Change).

• You paid rent in Germany and in India (Double Household).

• You traveled to India to meet your family, maintain your house, and paid for flight tickets (Double Household).

• You have children, and your income is above EUR 60,000 per year, which makes you benefit more from the Kinderfreibetrag than from the monthly Kindergeld.

  Note: Kindergeld must be applied for in any case. Any additional benefit above Kindergeld will be provided by the tax office. Kindergeld itself is not paid by the tax office.

• You have children and there are expenses for education, Kindergarten, etc.

The more conditions you meet, the higher your chances of receiving a refund. The exact amount of the refund will depend on your individual circumstances.

After filing your tax return with the Finanzamt, it typically takes 8-12 weeks to receive the refund in your account. In some cases, it may take even longer.

With our consultancy, the refund will be deposited directly into your account by the Finanzamt (German or Indian account). Refunds to an Indian account may take an additional month.

Yes, it is possible to get a refund for pension contributions. However, it is a separate process, and the refund can only be claimed after two years of leaving Germany. For more details, click here to visit our dedicated website.

If you are entitled to a refund from the tax office, you can apply for a return within the next 4 years. For the current year 2025, it is possible to apply for a tax return for the years 2021, 2022, 2023, and 2024.

However, if a taxpayer owes taxes, they must file their tax return before July 31st of the following year.

Situations Where It Is Mandatory to File a Tax Return Before the Deadline:

• The tax office (Finanzamt) has provided a free allowance on your tax card.

• Married couples, where both partners are employed and have opted for tax classes 3 and 5.

• You have received tax-free benefits, e.g., Mutterschaftsgeld, Elterngeld, or paid sick leave.

• You have more than one employer at the same time (except for Mini-jobs).

• You have income outside Germany during the financial year (e.g., in the year of relocating to/from Germany).

• Freelancers and self-employed individuals.

• The tax office has sent you a reminder letter with a specific deadline to file your tax return, even if none of the above conditions apply.

Business expenses (Werbungskosten)

The Finanzamt provides a lump sum amount (Arbeitnehmer-Pauschalbetrag) of EUR 1,000 per year towards employment-related expenses. This is part of the default tax calculations done by the employer. If your business expenses exceed this amount, you can declare the additional costs and receive a tax rebate.

Below are some common categories for tax rebates (subject to terms & conditions):

1. Travel Expenses: If you travel from home to office using public transport, you can claim the travel ticket cost. You can only claim one-way travel per working day, amounting to 0.30 euros per kilometer. If you don’t have public transport tickets, train tickets or bank statements can be used as proof.

2. Relocation Expenses: If you moved from India to Germany or within Germany, actual and flat rate expenses can be claimed.

3. Training Costs: Expenses for professional development, such as books, training courses, and language classes, can be deducted. Students can also deduct a variety of educational expenses. Keep fee receipts as proof. Additionally, interest payments on education loans can be deducted.

4. Office Equipment: If purchased primarily for professional use (e.g., laptops, desks, chairs, bookshelves), these expenses can be deducted in full. Invoices are required as proof.

5. Job Search Expenses: Costs related to job search, such as travel expenses for interviews, can be claimed with proper receipts (tickets and interview letters).

6. Home Office: For the 2020 and 2021 tax years, a lump sum of up to EUR 600 can be deducted for working from home. This covers up to 120 days per year.

7. Double Household Expenses: Applicable if you maintain a primary household in India where your family (spouse and kids) reside. You can claim:

   • Flight ticket costs to India to meet family.

   • Telephone expenses.

   • Rent paid in Germany.

   • Food expenses for the first 3 months after arrival in Germany (proof not required).

If the sum of your business expenses does not exceed EUR 1,000 per year, no additional refund is possible, as this amount is automatically accounted for by the employer.

Extraordinary expenses (Außergewöhnliche Belastungen)

1. Home Maintenance Expenses: Costs for craftsmen services (e.g., painter, plumber, decorator) for your rented or owned house in Germany can be claimed. Invoices and bank statements as proof of payment are required.

2. Maintenance Payments to Needy Dependents (Unterhaltsleistungen an bedürftige Personen):

   • Financial support provided to parents, parents-in-law, grandparents, spouse, or children in India who require support.

   • The dependent’s income must be below EUR 2,000 per year.

   • Dependents such as parents/grandparents should be above retirement age (typically 65+ as per German regulations).

For Indian nationals, following maximum support money is deducible from your taxable income and applicable tax rates gives tax benefits.

• For year 2010 and before : Maximum Euro 1920 per person per year

• From Year 2011 & 2012 : Maximum Euro 2001 per person per year

• From Year 2013 : Maximum Euro 2032 per person per year

• From Year 2014 : Maximum Euro 2089 per person per year

• From Year 2015 : Maximum Euro 2118 per person per year

• From Year 2016 : Maximum Euro 2163 per person per year

• From Year 2017  : Maximum Euro 2210 per person per year

• From Year 2018  : Maximum Euro 2250 per person per year

• From Year 2019  : Maximum Euro 2292 per person per year

• From Year 2020  : Maximum Euro 2352 per person per year

• From Year 2021  : Maximum Euro 2436 per person per year

• From Year 2022  : Maximum Euro 2496 per person per year

• From Year 2023  : Maximum Euro 2560 per person per year

• From Year 2024  : Maximum Euro 2630 per person per year

To Claim This Benefit:

• Support money must be sent directly to the bank account of the dependent (e.g., parent, parent-in-law, grandparent, spouse, or child) from the start of the year.

• You can transfer to a single account for a household (e.g., transferring to your father’s account is sufficient to claim for both parents).

• Submit a Dependent Support Declaration Form (Unterhaltserklärung) certified by an Indian Notary Public.

• Provide bank statements of your German account showing debit transactions to support dependents.

• Submit bank statements of the dependent’s account as proof that the money was received and used by them.

1. Lohnsteuerbescheinigung:

   • This is your annual income statement from employment in Germany, similar to Form 16 in India.

   • You can obtain this document from your employer.

2. Identifikationsnummer (11-digit unique number):

   • This number and the name of your Finanzamt (tax office) are provided in the “Bescheinigung für den Lohnsteuerabzug”.

3. Steuernummer:

   • If you have filed a German tax return in previous years, you can find this on your Assessment Order (SteuerBescheid) from the Finanzamt.

4. Bank Account Details:

   • Provide your German bank account details for tax refunds (Konto-Nr, BLZ, IBAN, BIC).

   • If you do not have a German bank account, you can also provide your Indian account details.

5. Proof of Income Outside Germany:

   • If you worked outside Germany for a few months during the tax year, provide salary slips from that employment (e.g., if you worked in India from January to May and in Germany from June to December, submit the salary slips from January to May).

   • This is needed to determine your tax slab. This income will not be taxed twice.

6. Business Expenses:

   • Provide documentation of employment-related expenses, as explained [here].

7. Double Household, if applicable:

   • If you maintain a double household (e.g., one in India and one in Germany), provide:

     • Proof of house in India (e.g., India house rental agreement, home loan account statement, sale deed, etc.).

     • Flight tickets and boarding passes for travel to meet your family.

     • German rent agreement, rent receipts, or bank statements showing rent payments.

     • Brokerage fee receipts, if applicable.

8. KinderGeld Details, if applicable:

   • Provide details if you are claiming the KinderGeld benefit:

     • Name and date of birth of the child(ren).

     • Amount and period for which KinderGeld was received.

     • If KinderGeld was rejected, provide the rejection letter.

9. Education and Kindergarten Expenses:

   • Any receipts or proof of expenses for child education or kindergarten fees.

10. Dependent Support, if applicable:

    • If your parents, spouse, or child are financially dependent on you in India, and you provided monetary support, include:

      • Proof of transfer (your German bank account statement showing the transfer and the dependent’s bank account statement showing receipt).

      • Completed Unterhaltserklärung (Dependent Support Declaration) form for each dependent (available below).

      • The form must be certified by a Notary and signed by the dependent.

      • Any other documents supporting their financial need (e.g., proof of expenses or income).

11. Any Other Income:

    • Include any other sources of income, such as Elterngeld or Mutterschaftsgeld.

If you need a detailed Excel checklist of documents and specific details, please send us an email.

Simply contact us and take advantage of our consultancy services from the comfort of your home. We provide services worldwide.

OR

If you prefer to handle it yourself, there are two options to prepare your tax declaration:

1. Use the Printed Forms:

   • Complete the forms and submit the file to your local Finanzamt (Tax Office).

2. Use Free Software – ELSTER:

   • Provided by the Finanzamt, ELSTER is an official tool for electronic tax filing.

You can generally expect the refund to be processed within 8-12 weeks.