Tax Return Guide
Most Indians in Germany overpay taxes and never claim their refund. The average refund is over €1,000, this guide shows you exactly how to get it.
Why Most Indians Should File
🎯 The Bottom Line
Even if you are not sure whether you qualify, it costs nothing to try, if you end up owing money, you simply don't submit. Most Indian expats who file their first return in Germany are surprised by how much they receive back. It takes 1–3 hours with Wundertax or Taxfix.
Employees (Arbeitnehmer)
Optional (but recommended)Filing is voluntary but almost always beneficial. Your employer withholds tax monthly but cannot account for your deductions, commuting costs, or home office. The average employee refund is ~€1,000.
Werkstudenten (Students with jobs)
Optional (but recommended)If you worked as a Werkstudent (part-time student job), taxes may have been withheld at the full rate. For a Master's student, all study costs (books, thesis, commuting) are deductible as Werbungskosten, often generating a refund even if you're below the tax threshold.
Self-employed / Freelancers
MandatoryMandatory if your net self-employment income exceeds €410/year. You must file an Einkommensteuererklärung and potentially a Umsatzsteuervoranmeldung (VAT return) quarterly.
Multiple employers in one year
MandatoryIf you received income from more than one employer simultaneously, filing is mandatory because each employer may have taxed you at a lower rate than your combined income warrants.
New arrivals
Optional (but recommended)If you arrived in the middle of the year, your employer withheld tax as if you earned your current salary for all 12 months. Your actual taxable income is much lower — the refund can be very significant.
Werbungskosten (Work-related expenses)
€0.30/km one-way for first 20 km; €0.38/km from km 21 onwards. Use actual days worked × km × rate.
€6 per day working from home, up to €1,260/year (210 days). No need to have a dedicated room.
Laptop, monitor, keyboard, headset, work software — if used ≥ 90% for work, fully deductible in year of purchase.
Courses, certifications, books, subscriptions (journals, LinkedIn Learning) directly related to your job.
CV printing, portfolio costs, travel to interviews, photos.
Gewerkschaftsbeiträge, membership fees for trade unions or professional associations.
Sonderausgaben (Special personal expenses)
If you took a German course for integration or career advancement, the fees are deductible.
Donations to registered German charities (Spenden). Keep receipts and donation confirmations (Spendenbescheinigung).
Kirchensteuer paid during the year is itself deductible as a Sonderausgabe.
If you contribute to a Riester pension (Riester-Rente), contributions may be deductible.
Study costs (relevant for Master's students)
Textbooks, stationery, software required for your course.
All costs for printing and submitting your thesis.
Same Pendlerpauschale rule applies — €0.30/km one-way.
If ≥ 90% used for study/work, fully deductible. Mixed-use = 50% deductible.
Travel to academic conferences or research trips, if you are employed as a researcher (HiWi / researcher).
Haushaltsnahe Dienstleistungen (Household services)
You can deduct 20% of LABOUR costs (not materials) for plumbers, electricians, painters in your home. Keep invoices showing labour separately.
Cleaning services, gardening, childcare services in your household, 20% deductible.
If you employ someone for household work on a registered Minijob basis.
The official German tax portal. Free, but has a steep learning curve. Requires registration and certificate file. Best for those comfortable with German tax terminology.
Open ELSTERMost beginner-friendly paid option. Has English support, guides you question-by-question. Popular with Indian expats. Worth every cent — the refund usually far exceeds the cost.
Open WundertaxMobile-first app. Very simple interface. Good for employees with straightforward tax situations. German language only.
Open TaxfixWeb-based, cheaper than Wundertax. Good for employees. German language. Solid for standard returns.
Open SteuerGoGood mid-range option. Handles more complex situations than Taxfix. German language.
Open SmartsteuerWorth it for complex situations: self-employment, multiple income sources, international income, share sales. Find one via the Federal Chamber of Tax Consultants.
Open Steuerberater (Tax Advisor)What You Need Before You Start
Choose your tool
Use Wundertax (English support), Taxfix (app), or ELSTER (free, official). Create an account.
Enter personal data
Name, address, Steuer-ID, marital status, religion (for church tax), bank IBAN.
Enter income data
Enter all numbers from your Lohnsteuerbescheinigung exactly. The software will guide you field by field.
Add deductions
Commuting (km × days), home office days, work equipment, courses, donations. The software calculates what to claim.
Review the refund estimate
The software shows your estimated refund / payment. If it's a refund, submit. If you owe money and didn't previously know, consider consulting a Steuerberater.
Submit electronically
File via ELSTER connection (all platforms support this). You'll get a confirmation number (Transferticket).
Wait for Steuerbescheid
The tax office sends a Steuerbescheid (assessment notice) by post in 2–8 weeks. Check it carefully. If correct, the refund arrives within days.
Appeal if needed (Einspruch)
If you disagree with the assessment, you have 1 month to file a written Einspruch (objection). A Steuerberater can help with this.
Do I have to file a tax return in Germany?
It depends. If you are employed and only have one employer, filing is optional (but almost always results in a refund). If you are self-employed, have multiple employers, or certain special income, filing is mandatory. You can voluntarily file up to 4 years retroactively.
What is the deadline?
Voluntary filing: July 31 of the following year (e.g. 2024 taxes → July 31, 2025). With a Steuerberater: October 31. These deadlines can be extended on request.
How much refund can I expect?
The average tax refund in Germany is approximately €1,027. New arrivals who only worked part of the year typically get larger refunds because tax was withheld at an annualized rate but they only earned income for part of the year.
I am a student, can I file a tax return?
Yes! If you worked as a Werkstudent, HiWi (student research assistant), or any part-time job and had taxes withheld, you can file for a refund. Study costs for a second degree (Master's) are fully deductible as Werbungskosten.
Can I deduct my flight ticket to Germany?
If you moved to Germany for work or study, the moving costs (Umzugskosten) — including a one-time travel allowance, may be deductible. Use the official moving cost lump sums (Umzugskostenpauschale) published by BRKG each year.
What is the Grundfreibetrag?
The tax-free allowance. In 2024 it is €11,604. Income below this amount is not taxed. If you only worked 6 months in a year, you may have had tax withheld based on a full-year projection, so filing will recover the overpayment.
I came mid-year — does that help?
Yes, significantly. If you arrived in June and worked July–December, the tax office projected your annual income over 12 months, taxed accordingly, but you only earned for 6 months. Filing almost always results in a substantial refund.
Which documents do I need?
Your Lohnsteuerbescheinigung (annual wage tax certificate from your employer), Steuer-ID, bank account IBAN, receipts for deductions, and your ELSTER account / chosen software login.