Definition and Legal Classification of Moving Expenses
Moving expenses are all necessary expenditures incurred in connection with a change of residence or relocation. They include all cost items that may arise in the context of a private or work-related move. The legal treatment of moving expenses is governed by different laws and regulations, particularly in tax law, labor law, tenancy law, and public service law.
Tax Treatment of Moving Expenses
Deductibility as Work-Related Expenses
Moving expenses can be claimed for tax purposes under certain conditions. This is particularly possible if the move is work-related. The main legal basis is § 9 paragraph 1 sentence 1 of the Income Tax Act (EStG). According to this, moving expenses can be deducted as work-related expenses if the change of residence significantly shortens the commuting time to the workplace or if the move is for official reasons.
Requirements for Recognition
- Work-Related Reason: The relocation of the main place of residence must be directly related to the employment relationship.
- Proof of Costs: All costs must be documented by receipts.
- Necessity and Reasonableness: Only necessary and reasonable expenses are taken into account.
Amount of Deductible Moving Expenses
The amount of moving expenses deductible for tax purposes is determined by the actual proven costs as well as by so-called flat rates regulated in the Federal Moving Expenses Reimbursement Regulation (BUKG). The favored costs include:
- Transport costs (e.g., removal van, moving company)
- Travel expenses for apartment viewing and search
- Brokerage fees for rental apartments
- Double rent (maximum of six months)
- Expenditures for compensation for damages and insurance in connection with the move
- Other incidental costs such as connection fees for telephone and Internet
Flat-Rate Moving Cost Reimbursement
For certain expenses, such as cosmetic repairs or tips, a flat rate may be applied. The flat-rate amounts are regularly updated by the Federal Ministry of Finance (BMF).
Moving Expenses in Labor Law
Reimbursement Obligations for Work-Related Moves
Employers can, but are not generally required to, reimburse moving expenses of their employees when the move is work-related. A claim for reimbursement only arises if this is expressly agreed to in the employment contract, a company agreement or a collective bargaining agreement. The regulations here are often found in public service law and various collective agreements.
Public Service and the Federal Moving Expenses Act (BUKG)
In the public sector, entitlement to reimbursement of costs for employees arises from the Federal Moving Expenses Act and the Federal Moving Expenses Regulation. The reimbursable costs, eligibility requirements, and application deadlines are specified in detail. Typical reimbursements include:
- Transport costs including moving helpers
- Travel expenses to the new workplace
- Broker’s and notary’s costs for the purchase or rental of living space
- Costs for apartment visits and preparation for the move
Moving Expenses in Tenancy Law
Separation of Responsibilities between Tenant and Landlord
Upon termination of a tenancy agreement, the tenant is generally responsible for the moving costs, unless there is co-fault or a breach of contract by the landlord (e.g., extraordinary termination by the landlord without justified reason). In individual cases, the landlord may have to reimburse moving costs, for example in the case of an unjustified immediate termination.
Compensation and Cost Reimbursement
A landlord’s obligation to cover costs can arise in cases of claims for damages due to terminations for personal use or breaches of the rental agreement. To do so, the moving costs must be in the so-called ‘adequate causal connection’ with the landlord’s breach of contract. Case law generally recognizes the reimbursement of proven, necessary, and reasonable moving expenses.
Moving Expenses Reimbursement in Public Service Law
Legal Basis and Procedures
Employees in the public sector can apply for cost reimbursement in the event of a work-related move in accordance with the Federal Moving Expenses Act (BUKG). The entitlement is limited to necessary and reasonable moving costs. Reimbursement is regularly granted only upon application and with prior approval.
Important Requirements and Exclusions
- The move must be officially ordered or approved.
- The application for reimbursement must be submitted within the legally prescribed deadlines.
- Private moves or moves without official necessity are not reimbursed.
Social Law Aspects of Moving Expenses
Cost Coverage in Case of Need
According to §§ 22 and 35 of the German Social Code Book II (SGB II) and correspondingly SGB XII, eligible persons (e.g., recipients of unemployment benefit II) can apply for reimbursement of moving expenses under certain conditions. The move must be necessary and previously coordinated with the responsible agency.
Reimbursable Benefits
The following moving expenses are generally eligible for reimbursement:
- Transport costs
- Travel and transportation expenses
- Deposit for the new apartment
- Acquisition and renovation costs subject to individual assessment
Case Law on Moving Expenses
Case law specifies and supplements the legal foundations of moving expenses. The main focus is on the reasonableness of the claimed expenditures. Courts review, especially on a case-by-case basis, to what extent liable parties are obliged to cover the costs and whether the costs were actually incurred and necessary.
Typical Types and Items of Moving Expenses
Moving expenses are composed differently depending on the reason for the move. Typical cost items include:
-Costs for moving companies or rental vehicles
-Expenses for packing materials
-Costs for craftsmen (disassembling and assembling furniture, electrical installations)
-Expenditures for apartment renovation
-Travel and transportation expenses
-Double rent payments
-Broker and notary fees
-Connection fees for communication facilities
Obligations to Provide Evidence and Documentation
For recognition under tax and labor law, complete and proper documentation of moving expenses is required. Receipts, invoices, and, if necessary, a certificate of moving from the employer should be reliably kept, as these regularly serve as proof to tax authorities, employers, or social benefit agencies.
Differences Between Private and Work-Related Moves
Moving expenses incurred for a privately motivated change of residence are not considered deductible work-related expenses for tax purposes, but may potentially be recognized as household-related services under § 35a EStG. Work-related moves, on the other hand, are regularly subject to tax claims as work-related expenses or business expenses.
Conclusion
Moving expenses are a complex concept whose legal treatment varies significantly depending on the reason and cause. The relevant regulations are found in tax law, labor law, tenancy law, public service law, as well as social law. Thorough review of eligibility requirements and complete documentation of expenditures are essential to successfully assert claims for reimbursement or tax refunds.
Frequently Asked Questions
Under what conditions are moving expenses tax deductible?
Moving expenses can be claimed for tax purposes under certain legal requirements. There must first be a direct relation between the move and employment, or a work-related necessity, such as a job change, transfer, or reduction of the daily commute by at least one hour. Work-related moving expenses can be claimed as work-related deductions in the income tax return. According to § 9 (1) sentence 1 EStG, the amounts spent must be documented, i.e., supported by invoices or contracts. Alternatively, a flat rate for moving expenses set annually by the tax authorities may be applied without individual proof, provided no higher actual costs were incurred. For privately motivated moves, only a limited tax deduction is possible under the regulations for household-related services (§ 35a EStG), allowing only labor and travel costs of the moving company to be deducted, not material or transport costs. Therefore, careful review and documentation of the reasons for moving and the costs incurred is essential to claim tax benefits in a legally sound manner.
What duties does a landlord have regarding moving expenses in the case of termination for personal use?
If a tenant is served notice due to personal use and consequently has to move, according to § 574 (2) BGB and the social clause, a case-by-case assessment may lead to the landlord being required to address hardship, which may include covering certain costs. However, according to established case law, there is generally no flat obligation for the landlord to cover moving expenses. A compensation claim against the landlord is only possible if the notice was abusive, e.g., contrary to good faith, or if the termination for personal use was erroneous or faked (e.g., damages under § 280 BGB for breach of duty). Affected tenants can claim damages for moving expenses if the requirements for an unjustified termination are met. In the normal case of a valid personal use claim, the tenant must generally bear the moving expenses themselves.
What contractual provisions regarding moving expenses should be observed in the case of a job transfer?
In the event of a job transfer by the employer, it should first be checked whether the employment contract, collective agreement, or a company agreement contains specific provisions regarding moving expenses. Many companies follow the guidelines of the Federal Moving Expenses Act (BUKG) or internal moving cost guidelines, according to which certain moving expenses, such as transport, broker, or double rent payments, are covered. Deadlines for application submission and obligations to provide proof may also apply. In case of dispute, a written commitment from the employer is advisable. If the contractual documents do not contain a reimbursement obligation, there is no general legal entitlement to reimbursement of moving expenses. It is therefore recommended to clarify possible cost coverages explicitly before accepting a transfer.
What rights exist if the moving company causes damage?
If a moving company causes damage to the property or the goods during transport, the provisions of the German Civil Code (BGB) and the General German Forwarding Conditions (ADSp), if contractually agreed, primarily apply. Under § 451e HGB, the mover is liable for loss or damage to goods during transport in furniture moves primarily without regard to fault, with an upper limit of 620 euros per cubic meter of goods. Higher liability limits or insurance policies can be contractually agreed. Damages must be reported in writing to the moving company immediately, no later than three days after delivery (§ 438 HGB). Gross negligence and intent lead to unlimited liability. Defenses such as improper packing by the customer can reduce the liability. Precise documentation and gathering of evidence (photos, witnesses) are particularly important from a legal perspective.
To what extent is there an entitlement to reimbursement of moving expenses in the case of separation or divorce?
In the case of separation or divorce, each spouse must generally bear their own moving costs, as these are considered the result of a private decision. Coverage of moving expenses by the ex-partner is only considered in exceptional cases, such as when a cost arrangement has been expressly agreed in the context of pension equalization, equalization of accrued gains, or an out-of-court divorce settlement. Support claims under §§ 1360 ff., 1570 ff. BGB may, in exceptional cases, cover extraordinary moving expenses as special needs if they become absolutely necessary due to unforeseen events. However, there is no general legal entitlement to reimbursement. Tax deductibility is limited to household-related services.
What deadlines apply for asserting claims for reimbursement of moving expenses?
For claims for compensation in connection with moving expenses, for example against a moving company due to damage or loss, the general civil law limitation periods apply (§ 195 BGB: three years), which for damage to moving goods regularly begin only upon knowledge of the damage and the liable party. If general terms and conditions have been agreed, shorter or more specific exclusion periods may apply, such as the obligation to give notice of apparent damages within three days according to § 438 HGB. In employment law disputes (e.g., with the employer over reimbursement of moving costs), shorter exclusion or forfeiture periods may apply depending on the collective agreement or company policy. In disputes with the landlord (e.g., for damages due to unjustified termination), the civil law limitation periods also apply. Missing a deadline generally leads to loss of the enforceable claim.
