Helpful Tax Tips
The costs of a move can be high, including expenses for packing materials, movers, transport, and storage. In addition to our lowest price guarantee and combination discount, StudentMovingCompany also offers useful savings and tax tips. Some moving and accommodation costs can be deducted from your income tax return. Different conditions apply depending on whether you are moving as a private individual, employee/expat, or business owner.
Tax Tips 1 | Individuals Without a Private Home
If you are moving to a rental home, you can deduct moving costs in an indirect way. Apply for a loan to finance your move and deduct this from your assets in box 3 of income tax. There is a threshold amount of €2,900 without a tax partner and €5,800 with a tax partner.
Tax Tips 2 | Individuals With a Private Home
If you are relocating to a privately owned home, certain costs related to taking out a mortgage are tax-deductible in the year of purchase. These include:
- Mortgage-related costs (phone, postage, travel expenses, etc.).
- Advisory and brokerage costs for your mortgage.
- Notary costs for the mortgage deed and registration.
- Appraisal costs for the property.
- National Mortgage Guarantee (NHG) application costs.
- Costs for an architectural report if needed for NHG.
- Penalty interest for early repayment or mortgage transfer.
- Construction or renovation-related interest.
- Maintenance costs for a nationally listed building (80% deductible).
Note: Costs such as home renovations, real estate agent fees, and property transfer tax are not deductible.
Tax Tips 3 | Employees/Expats Moving for Work
Moving expenses are usually not tax-deductible for private individuals unless the move is necessary for work. Employers can provide a tax-free allowance of up to €7,750, covering costs such as:
- Cleaning costs of the old and new home.
- Storage costs for household items.
- Transport costs for house-hunting trips.
- Wallpapering and furnishing the new home.
- Double housing costs (if applicable).
- Moving-related telephone and utility costs.
Conditions include reducing travel distance by at least 50% and relocating within two years of starting the job.
Tax Tips 4 | Business Owners and Freelancers
Entrepreneurs can deduct business-related moving costs if the move reduces their commute by at least 50% and places them within 10 km of the business location. Deductible costs include:
- Cleaning costs for the old and new home.
- Storage and transport costs.
- Wallpapering and furnishing the new home.
- Double housing and utility costs.
- A standard deduction of €7,750.
If your business operates from home, workspace-related costs may be deductible if the workspace has a separate entrance and private facilities.
Maximize Your Savings
Using these tax tips, you can significantly reduce your moving costs. Consult a tax professional for more details on eligibility and deductions.
