Flat-rate moving expense

The flat-rate moving allowance is a tax deduction that employees and self-employed individuals can claim when moving for work-related reasons, instead of providing itemized receipts. It is governed by the Federal Moving Expenses Act (BUKG) and is regularly adjusted to reflect changes in prices. The allowance covers other moving expenses such as the period of maintaining two households, registration costs, and other moving-related incidental expenses-but not the actual transportation costs, which can be claimed separately.

Who is eligible for the relocation expense allowance?

Employees are entitled to the allowance if the move is work-related-that is, if the commute time to the new workplace is significantly shorter than the previous one, if there is a change of employer accompanied by a change of location, or if the employer expressly orders the move. According to the case law of the Federal Fiscal Court, a daily reduction of at least one hour in commuting time is considered a significant saving in travel time. Civil servants, judges, and military personnel may also claim the allowance under the BUKG. Freelancers and self-employed individuals may also deduct relocation-related costs as business expenses, but must provide individual documentation for them.

Important: Anyone who moves solely for personal reasons-such as family reunification, a nicer apartment, or personal preferences-cannot claim the moving expense allowance for tax purposes. The professional reason must be the primary motive and, in case of doubt, must be verifiable to the tax office. A written confirmation from the employer regarding the necessity of the move is helpful in this regard.

Current Amounts for the Flat-Rate Moving Allowance (2025)

Effective March 1, 2024, the following flat rates apply for other moving costs: €886 for eligible individuals without a spouse or partner in the same household; €1,771 for eligible individuals with a spouse, partner, or another person in the shared household; plus €590 for each additional person (children, other household members). These amounts are entered in the income tax return as income-related expenses (employees) or business expenses (self-employed individuals).

For children who change schools as a result of the move and require tutoring, additional flat-rate school-change costs may be deducted-up to €1,181 per child since 2024. This item is entered in the income tax return in Schedule N under “Other Income-Related Expenses.” Since the amounts are regularly adjusted, we recommend checking the current figures with the Federal Ministry of Finance or the relevant tax office at the time of filing your tax return.

Moving Expense Allowance and Real Estate Purchase: Interrelationships

Anyone who purchases a new property and moves for work-related reasons can claim both the moving expense allowance and actual moving costs for tax purposes. However, real estate agent fees for the property purchase itself (these are incidental acquisition costs), real estate transfer tax, or notary fees are not deductible. On the other hand, anyone moving from a rented apartment to a new rented apartment for work-related reasons can, in addition to the lump sum, claim double rent expenses during the transition period as a double household.

When purchasing real estate in connection with a work-related move, it is advisable to keep detailed records of all incurred costs: moving invoices, travel expenses for viewings, temporary housing, and renovation costs that are exclusively attributable to the new work location. In such cases, tax advisors can identify significant additional deductible items that go beyond the flat-rate allowance.

Practical Tip for Homeowners in Nuremberg and Franconia

Thanks to its strong economy (Siemens, Datev, MAN, Leoni, Schaeffler), the Nuremberg metropolitan region regularly attracts professionals and executives who relocate for work. Anyone moving to Nuremberg and buying or renting an apartment or house should not forget to claim the moving expense allowance on their first tax return at their new place of residence.

We recommend collecting all moving-related receipts-moving invoices, change-of-address fees, no-parking zone fines, costs for apartment viewings, and overnight stays during house-hunting trips-in full, even if you opt for the flat rate. Because: If the actual costs exceed the flat rate, you can switch to itemized documentation in your tax return. This change is generally possible until the tax assessment becomes final. Our tip: If you’re relocating to the region, speak with a tax advisor early on to make the most of all your options.

Frequently Asked Questions

Can I claim moving expenses from Nuremberg to Munich as a tax deduction?

Yes, if the move is work-related (new job, significant reduction in commute time). Both the flat rate and actual costs (transportation, travel for apartment viewings, double rent during the transition period) are deductible as employment-related expenses. Employment at the new location must be the primary reason for the move.

Do I have to apply for the moving expense allowance?

No. It is entered in the income tax return (Appendix N, line “Income-related expenses”). Receipts do not need to be submitted, but should be kept for at least four years in case the tax office has any questions.

What is the difference between the moving expense allowance and actual moving costs?

The allowance covers “other moving expenses” (e.g., change of address, school supplies for children, stove and wallpaper cleaning). The actual transportation costs (moving company) can also be deducted separately as income-related expenses with supporting documentation-there is no double deduction, as the allowance and the transportation costs cover different types of expenses. Anyone who hires a commercial moving company can also claim the labor cost portion of the invoice as a household-related service under Section 35a of the German Income Tax Act (EStG)-provided the move is for personal reasons.

Does the flat-rate moving allowance also apply to moves within Nuremberg or the metropolitan area?

Yes, even a move within the same city can be work-related and trigger the flat rate-the decisive factor is not the distance of the move, but the work-related reason. Anyone moving within Nuremberg because the new place of residence reduces the commute time to their workplace in Erlangen, Schwabach, or Fürth by at least one hour per day can generally claim the flat rate. It is more difficult to justify the move if you are moving within the same neighborhood or if your commute time remains the same-in these cases, the work-related reason must be convincingly demonstrated. Important: The moving expense allowance does not depend on the distance of the move or the value of the new property. Someone who moves to an expensive Nuremberg neighborhood like Erlenstegen or Mögeldorf for work can claim the same allowance as someone who moves to the more affordable outskirts. The allowance is a lump-sum reimbursement for typical living expenses-regardless of the property’s value.

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