Which Rental Service Charges Tenants Can Deduct—and Why Property Tax Is Excluded

Tenants reviewing their annual service-charge statements may be able to claim tax relief even if they are due a refund rather than an additional payment. Eligible costs include certain household services and tradespeople’s labor, while property tax, heating, water, electricity and waste charges are not deductible.

The property tax reform, in force since 2025, is now appearing in many tenants’ statements for that year and may increase costs depending on the property and municipality. Landlords can generally pass property tax on to tenants only if the tenancy agreement explicitly allows it. Where it does, the charge is usually apportioned according to the tenant’s share of the building’s total floor area. Without such a clause, the landlord must pay it.

Eligible tradespeople’s services can include chimney sweeping, lift or heating maintenance and repairs, gutter cleaning and meter replacement. Labor costs for these services can be counted alongside other qualifying work in the tenant’s home. The tax authority recognizes up to €6,000 in labor costs, with a maximum tax reduction of €1,200.

Qualifying household services include stairwell cleaning, gardening, caretaker work and meter readings. These can be combined with other eligible services, such as cleaning or care, up to €20,000 per year; the maximum tax reduction is €4,000. Caretaker charges are not automatically eligible in full: administrative duties must be separated from qualifying tasks.

Only labor and travel costs qualify, not materials. Tenants can generally use their service-charge statement rather than submitting every underlying invoice, but the statement must show the eligible costs separately. If it does not, they can ask the landlord or property manager for a breakdown.

Costs are usually claimed in the tax year in which they were paid. Advance payments made in 2025 may therefore be claimed for that year, while a balance paid in 2026 may belong on the 2026 return. Tenants should assign payments to the correct year and avoid claiming the same costs twice.

Sources: Handelsblatt.