Raising a family in Germany can be a rewarding experience. However, it’s essential to recognize that costs can accumulate quickly. Private school fees, daycare expenses, and after-school activities can be high. This is especially true for expats, who may find it more challenging to manage these expenses while trying to navigate the local tax system in a different language. Understanding how to account for School Fees on your German Tax Return can help alleviate some of this financial burden.
Private schooling in Germany can be expensive. Annual fees can range from €3,000 to €20,000 per child. On top of that, childcare costs often exceed €400 a month. This means many families spend tens of thousands of euros each year to give their kids the support they need, and those costs can be partially recovered when claiming School Fees on your German Tax Return.
But here’s the good news: Germany‘s tax law offers a way to ease that burden. Under §10 of the Einkommensteuergesetz (EStG), you may be able to deduct:
- Up to €5,000 per child per year for private school tuition
- Up to €4,800 annually for childcare (that’s two-thirds of costs up to €6,000)
The problem? Much of the guidance available is buried in German legalese and often overlooks the expat perspective entirely.
As an expat in Germany, raising kids can be expensive, especially if you’re paying for private schools or daycare. But did you know you can deduct up to 30% of private school fees, including School Fees, on your German Tax Return, and two-thirds of childcare costs from your taxes? This guide breaks down §10 EStG to help you save in 2025.”
This blog is here to change that.
Whether you’re a family from the U.S. living in Munich or a couple newly relocated from South Africa to Berlin, this 2025 guide to §10 EStG will walk you through exactly how to deduct your child’s education costs, with practical tips, real examples, and all the updates you need to file with confidence this year.
Understanding §10 EStG: Germany’s Tax Deduction for Education Costs
When it comes to German taxes, Section 10 of the Einkommensteuergesetz (EStG) is one of the most important laws for expat parents to be aware of. It’s where the government lays out rules for what are called “Sonderausgaben”—or special expenses, that can lower your taxable income.
And yes, that includes childcare and education costs.
What Does §10 EStG Cover?
In simple terms, §10 EStG allows you to deduct:
- Up to 30% of private school tuition, capped at €5,000 per child, per year
- Two-thirds of childcare expenses, up to €4,800 per child in 2025 (based on a €6,000 cap)
These deductions apply whether your child is in:
- A recognized private school in Germany
- A German or EU/EEA-approved school abroad
- A German school located outside of Germany (such as international schools run by the German government)
Quick Fact: In 2024, over 84% of people who filed a tax return in Germany got a refund, an average of €1,063, thanks in part to deductions like those found in §10 EStG.
What’s Not Included?
The deduction applies only to tuition costs, not meals, transport, or extracurricular activities. It also doesn’t apply to homeschooling or unaccredited institutions.
For childcare, only formal care, such as daycare, registered childminders (Tagesmütter), and after-school programs, is deductible. Babysitting by friends or through informal care arrangements doesn’t count unless it is properly documented.
Why It Matters for Expats
If you’re sending your child to an international or bilingual private school in Berlin, Frankfurt, or Düsseldorf, chances are you’re already spending thousands each year. Knowing what qualifies under §10 EStG can make a major difference, both in terms of your tax refund and your financial peace of mind.
In the next section, we’ll break down exactly who is eligible and how to prove your expenses to the tax office (Finanzamt).
Eligibility Criteria for Expats: Who Can Claim These Deductions?
Before you claim deductions under §10 EStG, it’s important to know whether you qualify. While Germany’s tax code can feel complex, the good news is that most expat families who are tax residents in Germany can benefit from these savings.
Who Is Eligible?
To claim education or childcare deductions, you must:
- Be a tax resident in Germany
(This usually means your main home or center of life is in Germany, or you’ve spent more than 183 days here in the year.) - Have one of the following:
- An EU/EEA passport
- A valid residence permit
- A permanent settlement permit (Niederlassungserlaubnis) if you’re from outside the EU
If you’re working and paying German income tax (Einkommensteuer), you’re likely eligible.
Which Children Qualify?
- Childcare deductions: Your child must be under 14
(There’s no age limit if your child is disabled and requires special care.) - Private school deduction: No strict age cap, but your child must be in formal education
- Education allowance: If your adult child is still in education (e.g., at university), you may claim an additional €1,200/year per child in 2025
Both parents can split the deduction if filing jointly.
Other Requirements
To qualify, you must also:
- Be contractually responsible for the school or childcare fees
(The invoice should be in your name, not your employer’s.) - Be the legal guardian of the child or have joint custody
- Use a recognized institution, such as:
- A German-accredited private school
- An EU/EEA-based institution with similar recognition
- A German international school abroad
Example: If your child attends the Berlin British School or Munich International School, you can deduct 30% of the tuition, up to €5,000 per year, as long as the school is state-recognized.
Still unsure if your school qualifies? You can check with the school directly or confirm with your local Finanzamt before filing.
Coming up next: we’ll walk you through how to calculate your deduction amounts, with real-world examples.
Claiming International School Fees on Your German Tax Return
Not all education-related expenses qualify for tax relief in Germany. But if you know what to look for, §10 EStG offers real savings, especially for families with young children or those in private schooling.
Let’s break it down clearly, with the latest 2025 limits and real-life examples.
Private School Fees
Deductible: Yes
Limit: 30% of tuition fees, up to €5,000 per child, per year
To qualify, the school must be:
- State-recognized in Germany
- Located in the EU/EEA, or
- A German school abroad
Not included: Boarding, accommodation, meals, supervision, or extracurricular fees.
Example:
The Smith family, U.S. nationals living in Munich, sends their two children to the Munich International School. Tuition is €16,000 per child annually. They can deduct 30% of that,€4,800 per child, or €9,600 total, from their taxable income.
Childcare Costs
Deductible: Yes
Limit for 2025: Two-thirds of expenses, up to €4,800 per child
(Increased from €4,000 in 2024)
You can claim this for:
- Children under 14, or
- Disabled children of any age
Eligible childcare includes:
- Kitas (daycare centres)
- Tagesmütter (certified childminders)
- After-school care programs
- Au pairs, if formally employed with a contract and paid legally
Tip: Always request an invoice and make bank transfers. Cash payments won’t count.
Example:
A family in Hamburg pays €600/month for full-day daycare. That’s €7,200 a year. They can deduct two-thirds, €4,800, the full allowed amount in 2025.
Education Allowance for Young Adults
Deductible: Yes
Limit: €1,200 per child per year
This applies to children aged 18 to 25 who:
- Are in vocational training or university, and
- Live outside the family home
This is claimed as a flat-rate deduction, no receipts required.
Example:
If your 20-year-old daughter studies in Cologne and lives in a student flat, you can deduct €1,200 from your income, no matter how much rent or support you pay.
What You Can’t Deduct
Not all education-related spending qualifies. These are non-deductible under §10 EStG:
- Private sports lessons, music classes, or clubs
- Tuition at non-EU/EEA schools abroad, unless they are German-accredited
- Boarding fees, meals, or transport to school
- Homeschooling expenses or informal tutors without certification
Stat Alert: In 2025, the childcare cost deduction rose 20% from €4,000 to €4,800 per child, reflecting rising childcare expenses across Germany.
Coming up next: we’ll guide you through how to actually claim these deductions, step-by-step.
Step-by-Step Guide to Claiming Deductions
Filing for education-related tax deductions in Germany might sound daunting, especially if you’re new to the system or not confident in German. However, once you understand the steps, it becomes a process you can manage confidently. Here’s how to do it, step by step, tailored for expat families in 2025.
Step 1: Gather Your Documentation
Before you begin filing, make sure you have the right paperwork. The Finanzamt (tax office) only accepts documented, traceable expenses.
You’ll need:
- Invoices from schools or childcare providers
- Contracts showing you’re the paying parent or guardian
- Proof of payment: Only bank transfers are accepted; cash receipts don’t count
- If claiming the education allowance, Proof that your adult child is enrolled and living away from home
Tip: Label your bank transfers clearly (e.g., “Tuition fee – Anna Smith – Berlin British School”) to make review easier.
Step 2: File Your Income Tax Return (Einkommensteuererklärung)
The form you’ll need is called “Anlage Kind”. This is where you report expenses related to your child or children.
On the form, you’ll:
- Enter details about your child (name, date of birth, school)
- Add eligible tuition and childcare costs
- Indicate if your child receives Kindergeld or is claiming the Kinderfreibetrag
You’ll also fill in main tax forms like the Mantelbogen and ESt 1A, but “Anlage Kind” is where your deductions go.
Step 3: Submit via ELSTER or a Tax Tool
All tax returns in Germany are filed digitally through MeinELSTER, the government’s official online tax portal.
To submit:
- Register at www.elster.de and activate your account (this can take 1–2 weeks).
- Fill in your tax return, including Anlage Kind
- Upload documentation as PDFs
- Submit electronically
Step 4: Understand the Günstigerprüfung
Here’s a concept many expats miss: Günstigerprüfung, or the “most favorable option” check.
When you claim deductions for children, the Finanzamt automatically compares:
- Kindergeld: €255/month per child in 2025
- Kinderfreibetrag: €6,672/year in 2025 (split between parents)
The tax office will calculate your refund using both methods and apply the one that gives you the greater benefit—you don’t have to choose.
Example: If your income is high, the Kinderfreibetrag may give you a better outcome than receiving Kindergeld payments throughout the year.
Summary Checklist
| Step | Task | Tools/Links |
|---|---|---|
| 1 | Collect documents | Invoices, contracts, bank transfers |
| 2 | Fill out “Anlage Kind” | Part of the income tax return |
| 3 | Submit online | MeinELSTER, Wundertax, SteuerGo |
| 4 | Let the Finanzamt apply Günstigerprüfung | Done automatically |
Coming up next: we’ll compare Kindergeld and Kinderfreibetrag to help you understand which option works best for your family.
Common Pitfalls and How to Avoid Them
Even well-intentioned expat parents can miss out on tax benefits due to small but costly mistakes. Understanding the most common errors can help you avoid delays, denials, or even audits from the Finanzamt.
Here are the top pitfalls to watch out for and how to stay clear of them.
Mistake 1: Not Applying for Kindergeld
Even if your income is too high to benefit much from Kindergeld (€255/month per child in 2025), you still need to apply.
Why? Because of the Günstigerprüfung. This is the automatic tax check where the Finanzamt compares:
- The tax benefit of Kindergeld received, vs.
- The value of the Kinderfreibetrag (€6,672 in 2025)
If you don’t apply for Kindergeld, the comparison can’t be made, and your Kinderfreibetrag may not be granted.
Tip: Apply for Kindergeld as soon as your child is registered in Germany, even if you don’t need the monthly payout.
Mistake 2: Paying Cash or Failing to Document Expenses
The Finanzamt requires verifiable Proof of payment, and that means bank transfers only. Cash, Venmo, or PayPal won’t suffice unless connected to a formal invoice and contract.
To be eligible, your payments must be:
- Linked to a legal childcare or school contract
- Transferred from your account, not reimbursed by your employer
- Clearly labeled, showing who the payment is for and what it covers
Keep all invoices, contracts, and SEPA transfer confirmations, ideally in a folder by tax year.
Mistake 3: Assuming All Schools Qualify
Only recognized schools in the EU/EEA or German international schools abroad are eligible for the 30% deduction for private schools.
If you send your child to a school in:
- The United States
- Asia
- Or a private institution outside of Germany that lacks EU/EEA accreditation
…you likely can’t claim tuition deductions, even if the costs are high.
Example: If your child attends a private school in Spain, it must be formally recognized under Spanish law as a legitimate education provider for the deduction to apply.
Quick Fixes for Each Pitfall
| Mistake | How to Fix It |
|---|---|
| Didn’t apply for Kindergeld | Submit an application to Familienkasse as soon as possible |
| Paid in cash | Switch to bank transfers only, and request official invoices |
| School not recognized | Verify accreditation status or ask the school for documentation |
Avoiding these missteps can mean the difference between a successful refund and a frustrating rejection notice from the tax office.
Next up, we’ll explore the differences between Kindergeld and Kinderfreibetrag and which one might benefit you more in 2025.
Additional Tax Benefits for Expat Parents
Childcare and school fees aren’t the only tax breaks available to expat families in Germany. If you know where to look, several other deductions can boost your refund and ease the financial pressure of raising kids abroad.
Let’s explore the most relevant options for 2025.
Single Parent Relief (Entlastungsbetrag)
If you’re a single parent living with at least one child, you can claim an annual tax relief of €4,260 in 2025. This applies whether you’re divorced, widowed, or unmarried, as long as:
- Your child lives with you full-time or part-time, and
- You are not living with another adult partner in the household
This amount is added to your basic tax-free allowance, reducing your overall tax burden.
Example: A single expat mom in Cologne with one child in daycare could claim:
- €4,800 childcare deduction, plus
- €4,260 single parent relief
saving thousands on her return.
Household Services Deduction (§35a EStG)
If you employ help at home, you may be able to deduct up to €4,000 per year in household-related services. This applies to:
- Babysitters
- Cleaners
- Gardeners
- Nannies or au pairs, if employed under a formal contract
You can deduct 20% of service costs, provided you pay by bank transfer and have official invoices.
Tip: Your babysitter or house cleaner must be registered with the Minijob-Zentrale or as a legal self-employed service provider to qualify.
Work-Related Relocation Costs
If you moved to Germany or changed cities for a job, you may be eligible to deduct relocation expenses. This includes:
- Moving services
- Travel to the new location
- New school registration fees for your child
- Temporary accommodation costs
In 2024, the standard flat-rate deduction was €964 for single individuals, plus additional amounts per child or spouse. These numbers are adjusted annually, so expect similar or slightly increased rates in 2025.
Example: A family who relocated from Hamburg to Stuttgart for work could deduct moving costs, childcare setup fees, and even school registration charges, provided they’re properly documented.
Summary: Bonus Deductions at a Glance
| Deduction | 2025 Limit | Notes |
|---|---|---|
| Single Parent Relief | €4,260/year | Must live alone with the child |
| Household Help | Up to €4,000 | Babysitters, cleaners and legal contracts required |
| Relocation Costs | €964+ | Work-related, must be documented |
If you’re an expat family juggling rent, school fees, and daily costs, these deductions can add up to significant savings. And when combined with §10 EStG, you’re looking at one of the most family-friendly tax systems in the EU, if you know how to navigate it.
Next: We’ll break down Kindergeld vs. Kinderfreibetrag, and explain how the Finanzamt decides which one benefits you more.
Statistics Snapshot: The Impact of Education Deductions
Still wondering if filing for child-related tax deductions is worth the effort? The numbers speak for themselves. For many expat families in Germany, these deductions don’t just ease the cost of living; they unlock meaningful annual refunds.
Here’s what the data shows:
1. Most Taxpayers Get Money Back
According to Germany’s Federal Statistical Office:
84% of people who filed a tax return in 2020 received a refund, with the average payout at €1,063.
A large portion of those refunds came from deductions related to children and family life, particularly for parents who paid out of pocket for childcare and education.
2. Private School Enrollment Is Rising
Germany has experienced a steady increase in private school enrollment in recent years.
Between 2015 and 2023, enrollment in private schools grew by approximately 10%.
(Trend estimate – confirmation pending official 2024 data)
Much of that growth is driven by international families looking for:
- Bilingual or English-language instruction
- IB or international curricula
- Smaller class sizes and global learning environments
These schools come at a premium, but are also eligible for tax deductions under §10 EStG.
3. Childcare Costs Are Highest in Cities
Childcare in Germany is subsidized, but it is not always affordable, especially in large urban areas where demand exceeds supply.
In cities like Munich, monthly childcare costs can average €800 to €1,200 for full-time daycare.
In 2025, parents can deduct up to €4,800 per child for these costs, a vital benefit for families balancing high urban living expenses.
The Bottom Line
These stats make one thing clear:
Filing your taxes properly and claiming what you’re eligible for can put real money back in your pocket.
Whether it’s:
- A €5,000 deduction for international school tuition
- Up to €4,800 in childcare relief, or
- The €1,200 flat allowance for university-aged children
These savings are here for the taking. But they’re only applied if you file and claim them correctly.
Up next: We’ll help you compare Kindergeld vs. Kinderfreibetrag to understand which one works best for your family situation.
Conclusion: Take Control of Your Tax Savings
Raising a family abroad isn’t easy, especially when you’re navigating a new language, system, and cost of living. But when it comes to your taxes in Germany, you have more control than you might think.
Let’s recap what’s on the table in 2025:
- €5,000 deduction per child for private school tuition
- Up to €4,800 per child for childcare expenses
- A flat €1,200 per year for older children in vocational training or university
That’s potentially over €11,000 in deductions, and thousands in actual tax savings.
Reminder: Even if filing a tax return isn’t mandatory for you, it’s often the only way to claim these benefits. Most expat families get a refund, and it’s often worth it.
Ready to Save? Start Here:
- Gather receipts, invoices, and Proof of bank payments
- Choose your filing tool: MeinELSTER, Wundertax, or SteuerGo
- Mark your calendar: Tax season for 2025 opens in early 2026, but preparing now saves time and stress later
Don’t leave money on the table. Start gathering your receipts and file your 2025 tax return with confidence!
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