Additional costs can be as surprising as the rent itself. If there is a feeling that the additional costs significantly increase the monthly expenses for the apartment, it is advisable to know what the billing list actually hides and which items can be partially reclaimed through a tax reduction for household-related services. This guide explains step-by-step the main rules, current changes, and pitfalls that may occur in the additional cost billing. This makes it easier to check whether the additional payment is justified and whether a refund is due.
Additional costs full of hidden treasures? Discover which items can offer a tax reduction for household-related services.
Additional costs are all operating expenses incurred in addition to the basic rent for the apartment. These include, among others, heating, water, garbage disposal, cleaning of common areas, garden maintenance, or janitorial services. They often cause the monthly rental expenses to rise more than expected. However, it is important to know that part of these costs not only describes the current maintenance of the building but can also offer a real tax advantage. Only with this context does it become clearer which items in the additional cost billing have “hidden potential.”
The tax reduction for household-related services only includes costs related to actually performed work, not the purchase of materials. This means that some items of the additional costs can be tax-advantageous, provided that the billing includes a clear division of labor costs. In practice, this means that, for example, the costs for building cleaning, garden maintenance, snow removal, fees for cleaning companies, or janitorial work can be deducted—but only in the part that corresponds to the labor wage. Therefore, it is important that the additional cost billing contains a clear separation of labor and material costs.
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If such a division is missing from the directory, a request should be made for its addition. Unfortunately, the law does not allow an independent estimate of labor costs, so the owner or manager must provide accurate data. Without this, the tax office will reject the deduction.
Is the rent bill rising? Check which labor costs (labor costs) can be legally deducted—before the additional costs reach the amount of the rent.
Labor costs in the additional costs are among the most important items that can be used in the annual billing. Only expenses that include an actual service can be deducted—such as wages, travel expenses, or machine costs, but not the purchase of materials or spare parts during repairs. This is also important if there is an interest in the taxation of rental income, as the correct distinction between labor and material costs not only affects the tax reduction but also the type of expense accounting in the annual declaration.
In practice, this includes, for example, the work of an electrician in common areas, the installation of a new intercom system, plumbing services in the building, chimney cleaning, or maintenance of installations. If these items appear in the additional cost billing, they can be used in the tax declaration. It is important that the mere presence of an item on the cost list is not sufficient. What matters is whether a clear share of labor costs is indicated in the directory. This is a frequently overlooked aspect, which causes many tenants to lose the opportunity to use the reduction.
Cleaning, snow removal, or minor repairs in the billing? Learn how to utilize the full potential of the tax reduction for household-related services.
Building cleaning, garden maintenance, or snow removal are classic examples of services that can be deducted. To achieve the maximum advantage, it should be checked whether the additional cost billing describes exactly what the service refers to and which costs represent labor costs.
The most commonly deducted items are:
– Building cleaning – costs of cleaning staff,
– Winter service – snow removal and gritting of sidewalks,
– Garden maintenance – costs for maintaining green areas,
– Janitor – work performed for the building, provided they do not include materials.
All these categories can reduce the tax if correctly issued documents are available. Therefore, it is advisable to keep the additional cost billing and ask the owner for additional statements if essential data are missing from the main table.
New kitchen, elevator repair, garden service? Recognize the boundary between deductible and non-deductible costs—and learn to correctly interpret the additional costs.
The boundary between deductible and non-deductible costs is very clear—labor yes, materials no. This also applies to larger works, such as the replacement of equipment, the maintenance of technical systems, or even the modernization of the building. So if an elevator service appears in the additional cost billing, the costs for the service can be considered. The replacement of parts, the purchase of a new engine, or the modernization of the control system, on the other hand, do not qualify for the reduction.
Similarly, with a fitted kitchen. The installation of the kitchen in the apartment and the travel of the specialist can be deducted, but not the production costs of the furniture or the purchase of materials. This is a classic example mentioned both by the tax authorities and by the case law of the Federal Fiscal Court (BFH). Understanding this boundary clarifies which costs can actually reduce the tax and which must remain part of the general additional costs.
How to check the additional cost billing to avoid errors and excessive additional payments?
To efficiently evaluate the additional cost billing, the cost list should be compared with the provisions in the rental agreement. This allows for the quick exclusion of items that are not allowed to be charged according to the agreements. The next step is to analyze the distribution key—errors often occur here. Then attention should be paid to all consumption-dependent items such as heating or hot water. There is a right to inspect documents that confirm consumption and measurement methods. Lack of transparency or unequal billing are signs that the owner should be asked for explanations.
If an item raises doubts, a request can be made to inspect the evidence—that is, to view invoices and source documents. This is a normal and fully permissible procedure. This avoids overpayment and errors, which unfortunately occur very frequently, are detected more quickly. A verified and transparent additional cost billing provides control over expenses and avoids unexpected additional payments.
Correctly described additional costs can significantly reduce the tax in the annual billing, provided they contain a clear division into labor and material costs. It is precisely in these details that the possibility is hidden to reclaim part of the expenses that incur anyway during the year. If a quick review is desired of which items can be considered in the tax declaration, the Taxando application offers a convenient solution—allowing the tax declaration from Germany to be created online step-by-step, without stress, and without the risk of overlooking important reductions.
Maciej Wawrzyniak
In his private life, Maciej enjoys sporting challenges, playing the guitar, and swimming in the lake. He is also the proud father of three sons.
