Can People in Germany claim money sent to Relatives abroad?

If you’re an expat living in Germany and sending money back home to support your parents or grandparents, you might be wondering — can you actually claim maintenance payments on your German taxes? Short answer: yes, but it’s a little more complicated than you might think.

Wait, You Can Actually Claim Money Sent Abroad?

Yes, you can. But before you go planning to write off every Western Union receipt, let’s set the record straight. Germany allows residents including expats to claim something called “Unterhaltszahlungen” (maintenance payments).

That means if you’re supporting someone financially, you might be able to reduce your taxable income. However, and it’s a big however, the rules are tight. Germany doesn’t just take your word for it , they want proof.

(And if you’ve spent five minutes dealing with a German office, you already know what kind of proof they want: more paperwork than you thought humanly possible.)

Who Counts as a “Supported Person”?

Now, here’s where it gets a little personal. Not everyone qualifies. Germany cares about family, but they have a strict definition when it comes to tax deductions.

You can generally claim support sent to:

• Parents
• Grandparents
• Children
• Grandchildren
• Sometimes siblings — but that’s rare and tricky

Friends? Cousins? That uncle who always needs “just one more loan”?
Nope. Not gonna fly.

Also important:
The person you’re supporting must be unable to support themselves. If your mom still works full-time, or your grandfather owns three rental properties, the tax office won’t be feeling too sympathetic.

How Much Can You Deduct?

For 2024, you can deduct up to €10,908 per year per supported person tax-free. (This amount adjusts slightly each year.)

But and you saw this coming , the actual deduction depends on a few messy things:

• Your family member’s own income: If they make more than about €624 per year, your deduction shrinks.
• Other support they receive: If other siblings are chipping in, you can only deduct your share.
• Proof of financial need: Germany expects clear documentation that they genuinely needed help.

And no, sending €500 a month to your cousin for their “crypto investments” doesn’t count. (Don’t laugh — someone definitely tried.)

This amount also depends on your salary. I have mentioned the calculations in the following guide:

Related Guide: Claim Remittance money sent to Parents from Germany in Tax Return

What Kind of Proof Do You Need? (Spoiler: All of It)

Get ready, you’ll need to become a master of documentation.

Here’s what German tax authorities typically expect:

• Proof of payment: Bank transfer receipts are golden. Cash transfers? Sketchy. They’ll probably be rejected.
• Proof of relationship: Birth certificates, family registers something official that connects you.
• Proof of financial need: Documents showing their income (or lack thereof) pensions, salaries, benefits, etc.
• Confirmation of residency: Something showing where your parent/grandparent lives.

And sometimes, just to make life even more fun, the Finanzamt (tax office) might ask for a signed declaration from the supported person explaining why they need help.

What About Countries Outside the EU?

Ah, the trickier bit. If you’re sending money to family in, say, India, Nigeria, or Brazil, you’re probably wondering if the same rules apply.

The answer? Mostly yes, but you may need even more proof.

When supporting someone in a non-EU country, the tax office might demand:

• Official documents confirming your family’s low income
• Local government statements
• Sometimes, a certification through the German embassy

In any case you will need to fill out a Form called: Unterhaltserklärung. You can download the Unterhaltserklärung From from here.

Okay, But How Do You Actually Claim It?

Good question. Here’s the basic flow:

1. During your annual tax return (the Einkommensteuererklärung), you declare the maintenance payments under “außergewöhnliche Belastungen” (extraordinary burdens).
2. Fill out the specific form, it’s usually the Anlage Unterhalt form.
3. Attach all your lovingly gathered proof.
4. Pray. (Only half joking.)

If your claim looks reasonable and your paperwork is tight, the Finanzamt will accept the deduction without too much drama. If not… be ready for questions, letters, and maybe a surprise audit.

Common Pitfalls (A.K.A. Why Your Claim Might Get Rejected)

Let’s be real: many expats mess this up. (Hey, no judgment. German taxes are an Olympic sport.)

Here are the most common mistakes:

• Sending cash instead of doing a traceable bank transfer
• No proof of relationship
• No proof of financial need
• Supporting someone with too much income already
• Trying to deduct vague “support” without proper documentation
• Sending all the money you want to claim at the end of the year

Honestly, the biggest issue is usually thinking, “It’ll probably be fine.” In Germany? No. It won’t.

Some Practical Tips to Make Life Easier

Because honestly, who needs more German paperwork stress? Here are a few tricks that actually work:

• Set up regular bank transfers labeled “Unterhaltszahlung” (maintenance payment) in the description.
• Gather documentation yearly, even if you don’t think you’ll need it. (You probably will.)
• Work with a tax advisor (Steuerberater) who understands international cases not just your average “fill out the form” guy.
• Keep records neatly organized. Think boring accountant vibes, not “shoebox full of receipts” chaos.

Small effort now = big relief later.

Claim Money sent to Relatives: Worth the Effort?

Look, supporting your family back home is already emotional. Adding bureaucracy on top can feel exhausting.

But and it’s a big but if you’re sending real money home and you’ve got your paperwork sorted, claiming it can absolutely lower your taxes. In some cases, it can push you into a lower tax bracket altogether, saving thousands.

Would I say it’s always worth it?
Honestly? If you’re sending a few hundred euros once a year, maybe not.
If you’re supporting a parent monthly with significant amounts? Absolutely.

The next step is actually Declaring your taxes in Germany, which again might not be as simple as you think 🙂

Disclaimer: None of the content in this article is meant to be considered as investment advice. I am not a financial expert and am only sharing my experience with stock investing. The information is based on my own research and is only accurate at the time of posting this article. The information may not be accurate at the time you are reading it.