How long do you need to keep receipts and invoices for in Germany?
To Germany's credit, the tax authorities in the country are generally given the powers and resources they need to tackle financial fraud, at least in comparison to some other countries.
The German love of probity and paperwork can take its toll on law-abiding citizens, however, many of whom breathed a sign of relief when former Federal Finance Minister Christian Lindner (FDP) reduced the retention period for accounting documents and invoices in Germany from ten to eight years.
Now, Lindner's bid to cut bureaucracy looks like being reversed by his successor, Lars Klingbeil of the centre-left SPD.
What does this mean for companies, the self-employed, and landlords?
If Klingbeil gets his way companies, the self-employed, and landlords will all be required to keep documents, invoices, and receipts for a period of ten years, starting from the end of the calendar year in which the document was created, or the last entry was made.
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Ideally, this means the originals of the documents, not copies, although the rules do allow for digital storage provided strict requirements for authenticity, completeness, and traceability are met.
The same individuals or organisations are also required by law to store annual financial statements, inventories, and tax returns for the same period of time.
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Under German law, some business documents including commercial letters and contracts only need to be kept for six years.
The tax office can legally request all these documents within the specified periods in order to audit companies and individuals and check tax returns. If you're unable to provide the documents when asked to do so, the tax office can disallow the entire expense deduction, leading to higher taxable profits and a higher tax bill.
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In cases of gross negligence or intent (such as the systematic destruction or falsification of documents), there's a risk of fines or criminal tax proceedings.
What does this mean for private individuals?
While there is no general legal obligation for private individuals to keep hold of their receipts and invoices, there's often a good reason to file them away somewhere anyway.
As a general rule of thumb, warranties or guarantees tend to last for two years in Germany, so it's a good idea to keep receipts for at least this length of time as proof of purchase.
Providing you have the appropriate invoices, you can also deduct 20 percent of the labour costs for household-related services from your tax bill (up to €4,000 for services including cleaning, gardening, and maintenance), and 20 percent for handyman services – such as repairs, renovations, or modernisation work in your home – up to a value of €1,200.
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If you own and live in your home, you can also deduct 20 percent of the costs for energy-efficient renovations from your taxes (like insulation, new windows, new heating systems, or digital energy management), up to a value of €40,000 over three years.
If you do claim, remember to keep all invoices and proof of payment for at least two years in case the tax office asks to see them.
Private individuals should also hang on to the tax assessment notices they receive from the tax office for at least then years, in the event of subsequent inquiries or subsidy applications.
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DW
2 hours ago
- DW
US attack on Iran: Germany in diplomatic no man's land – DW – 06/23/2025
Chancellor Friedrich Merz has defended the US attacks on Iran. Germany had not been informed in advance. Just over 35 hours after the US bombed Iranian nuclear facilities, German Chancellor Friedrich Merz addressed the issue in front of cameras for the first time. Merz spoke on Monday at an event organized by the Federation of German Industries (BDI) in Berlin, an engagement that had been scheduled for some time. The event's title was "New Times, New Answers," and Merz uttered a sentence that hardly any chancellor would have said until recently: "There is no reason for us, nor for me personally, to criticize what Israel started a week ago. Nor is there any reason to criticize what America did last weekend. It is not without risk. But leaving things as they were was not an option either." In other words, not only Israel, but also the US is now doing the "dirty work" in the fight against Iran. Merz used this phrase last week at the G7 summit in Canada to describe and praise the Israeli attacks. Not everybody in Germany liked this harsh choice of words. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video The German government spent most of Sunday trying to assess the new situation. Merz spoke on the phone with French President Emmanuel Macron and British Prime Minister Keir Starmer. Afterward, the three issued a statement saying: "Our goal remains to prevent Iran from acquiring a nuclear weapon." There was no criticism of the US attack. The statement continued: "We urge Iran not to take any further actions that could destabilize the region." On Sunday morning, Merz convened a meeting of the security cabinet, which includes the most important ministers in the government. Germany does not yet have a national security council, but the government wants to introduce one soon. It quickly became clear that Germany had only been informed by the US about the planned attacks after the bombs had already been dropped. This was a repeat of what happened more than a week ago when the Israelis attacked the Iranian nuclear facilities. At that time, Foreign Minister Johann Wadephul wasn't woken up by his Israeli counterpart, Gideon Saar in Cairo. It was the middle of the night, again after the attacks had already begun. Wadephul, who had planned to travel to the Middle East to make numerous visits in an effort to promote a peaceful solution, then informed Merz, who in turn spoke with Israeli Prime Minister Benjamin Netanyahu. Wadephul was then forced to cancel his planned visit to Israel. A similar sequence of events also unfolded after the US attack on Iran. On Friday, Wadephul met with Iranian Foreign Minister Abbas Araghchi in Geneva, together with his colleagues from France and the UK, in an attempt to reach a negotiated solution, but without success. Then, on Saturday night, the US intervened in the war. On Sunday after the US attack, German ministers appeared on television to explain to citizens where Germany stands on this issue and what the government can do. Defense Minister Boris Pistorius, for example, attempted late in the evening to provide some context on public broadcaster when he said: "It is never good when a confrontation escalates militarily and continues. That in itself cannot be good news, because it reveals and demonstrates that the world order of peace is currently under pressure. And that is true everywhere." But, according to the defense minister, if Iran had indeed progressed so far with its nuclear program that it posed an immediate threat, then "the destruction of the facilities for manufacturing nuclear weapons is certainly not bad news for stability and security in the region and for Israel." Foreign Minister Wadephul expressed similar views in several interviews. He stated that Iran had crossed a "red line" and must now be prepared to return to negotiations. Also on Monday morning, the head of the Chancellery, Thorsten Frei, invited all the leaders of the parliamentary groups in the Bundestag to discuss the new situation in the Middle East. When asked whether the US attack was justified under international law, Frei said: "In my view, we do not yet have all the information that would allow us to make a definitive assessment under international law." However, the question of international law was also on the minds of other German politicians on Monday. Agnieszka Brugger, defense expert for the Green Party, wrote on the X platform: "I find the blind allegiance to Donald Trump that leading CDU/CSU [conservative bloc] members of parliament are now demonstrating to be naive and dangerous. It is also a complete departure from international law. This could very soon be met with harsh reality." Representatives of the ruling center-left Social Democratic Party (SPD) also expressed concerns. SPD member of parliament Isabel Cademartori wrote on X: "A world in which countries that do not possess nuclear weapons can be attacked at any time by those that do, without any legitimacy under international law, simply because they can, is not a safe world. For anyone."While you're here: Every Tuesday, DW editors round up what is happening in German politics and society. You can sign up here for the weekly email newsletter, Berlin Briefing.
Local Germany
3 hours ago
- Local Germany
Germany to spend big on defence with country's security 'under threat'
Defence spending will increase from 2.4 percent of gross domestic product this year, the sources said, as Europe's top economy takes steps to bolster its armed forces due to the growing threat from Russia and under pressure from US President Donald Trump. "Germany's security is under threat," according to a budget planning document seen by AFP. "For the first time since the end of World War II, Germany and Europe must be in a position to guarantee their own security." NATO is set to unveil its new target at a summit this week, under which allies promise to reach 3.5 percent on core military needs over the next decade. The military alliance is also expected to set a 1.5 percent target for looser category of "defence-related" expenditures, such as infrastructure and cybersecurity. Together, the spending aims will bring allies to the five-percent figure pushed for by Trump. The military alliance's current target is for its 32 members to spend two percent of GDP on defence. Under the German plans, set to be presented Tuesday as part of the national budget, 95 billion euros ($110 billion) will be spent on defence in 2025, including 62 billion from the normal budget, 24 billion from a special fund set up by the previous government and around nine billion allocated to support Ukraine. Advertisement It will then steadily increase to 3.5 percent of economic output by 2029, according to the sources. The extra military outlays have been made possible after Chancellor Friedrich Merz pushed changes to Germany's strict "debt brake" through parliament that largely exempt defence spending from the rules. He has vowed to build Europe's "strongest conventional army" to counter the growing threat from Moscow. German defence spending has fallen heavily since the end of the Cold War and reunification, and the armed forces had suffered years of chronic underinvestment. Berlin had already started ramping up defence investment since Russia's 2022 invasion of Ukraine but Trump's demands and concerns about the strength of US security guarantees have given the spending drive new impetus. Parliament still needs to approve the new budget and will vote on it on September 19. © Agence France-Presse
DW
3 hours ago
- DW
Germany's Merz says Europe must end US defense 'free-ride' – DW – 06/23/2025
The chancellor says, "Europeans must become stronger on our own" as Germany invests record sums in defense and infrastructure. Follow DW for more. German Chancellor Friedrich Merz has called for Europe to boost its defense spending and reduce reliance on the United States, warning that American support is no longer guaranteed. Speaking in Berlin, he emphasized the need for strategic independence, resilience against hybrid threats, and long-term support for Ukraine. Germany is targeting 2.4% of its gross domestic product (GDP) on defense-related spending this year and increase it gradually to 3,5% by 2029. Meanwhile, nearly two-thirds of Germans now back the idea of a European nuclear deterrent that doesn't rely on the US, according to a new Forsa poll. Support stands at 64%, with solid backing across age groups, regions, and party lines — something rare in German foreign policy Chancellor Friedrich Merz has said Europe can no longer "free-ride" on US security and must invest more in its own defense to become strategically independent. Speaking at the Day of Industry in Berlin on Monday, Merz said US tolerance of low European defense spending "will not" continue, and warned that even a new US administration would not return to old assumptions. "We Europeans must become stronger on our own," he said. Merz urged European countries to build on their strengths and address weaknesses gradually. He also emphasized the need for long-term support for Ukraine, citing the Russian government's "very rigid stance." "Our resilience is required not only militarily, but above all politically," Merz said. Merz added that Europe must protect its freedom from sabotage, cyberattacks, disinformation, destabilization efforts, and attempts to divide the continent. Merz became chancellor last month. Germany plans to increase its defense budget to 3.5% of GDP over the next five years, government sources said on Monday, aligning with a proposed new NATO target for core military spending. Defense spending is set to rise from 2.4% of GDP this year, as the German government moves to strengthen its armed forces amid growing security threats from Russia and continued pressure from US President Donald Trump. The share of children growing up in large families in Germany has been rising again in recent years, according to the Federal Statistical Office (Destatis), driven mainly by immigration since 2015. In 2024, 26% of children were living in households with at least three children. That figure had declined from 25% in 1996 to 23% in 2015, but then rose again to 26% by 2024. "The development over the past ten years is likely due mainly to immigration starting in 2015," Destatis said. Families with a migration background were found to have three or more children nearly twice as often as families without foreign roots. In 2024, 19% of migrant families had at least three children, compared to around 10% of other families. Also in 2024, 8% of children lived with three or more siblings, while 18% had two siblings. The largest group — 44% — lived with one sibling, and 30% were only children. Larger families were slightly more common in the western federal states, where 13% of families had at least three children, compared to 11% in eastern Germany. The figures come from the annual microcensus, which surveys 1% of the population. Families are defined as parent-child groups living in the same household — children who have moved out are not included. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 videoBavarian Premier Markus Söder has reaffirmed his call for the return of compulsory military service, citing growing threats to European German government — especially under the current coalition — has proposed a new form of military service based initially on volunteering. As part of this concept, the Bundeswehr has started sending out questionnaires to young people to ask whether they would be interested in serving. Söder, however, says he sees this as insufficient. "I am in favor of conscription and not just a few questionnaires being sent out. We need it to defend our freedom," Söder said Monday on German broadcaster ZDF. Pointing to the threat from Russia, Söder noted that Sweden and Finland joined NATO last year "because they say their waters and airspace are constantly being challenged and violated." "We have to make an assessment: How much time do we have?" he added. "We don't alone decide the timing — the international situation does." The coalition agreement between the center-left Social Democrats and the conservative CDU/CSU bloc mentions a new form of military service, initially based on voluntary participation. "I think it's okay to say we want to increase voluntary recruitment, but if you want to defend a NATO border, defend national borders, and truly become the strongest army in Europe, it probably won't be enough with just questionnaires and volunteering," Söder said. Söder heads the junior partner in the Chancellor Friedrich Merz's conservative bloc, the Bavaria-based Christian Social Union (CSU). To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video The German government is adjusting its security measures in anticipation of possible retaliatory strikes by Iran, following US attacks on Iranian nuclear sites, a government official said Monday. "We have done so since before the operations began. We will continue to do so. But we are making ongoing adjustments and are in very close and very constructive consultation with our partners," the official said. The official added that the issue had been discussed with Britain and France on Sunday The "abstract threat" to US military bases in Germany has increased following American strikes on Iran's nuclear program, a top German government official warned Monday. Thorsten Frei, head of Chancellor Friedrich Merz's office, said Sunday's attacks have changed the security environment. "The abstract threat has without a doubt risen after the developments of the last few hours," Frei said in Berlin. "I believe we must assume that, and be prepared for it." Frei, a member of Merz's center-right Christian Democratic Union (CDU), said German security authorities are doing everything possible to protect US facilities in the country. Security around Jewish and Israeli institutions had already been increased following Israel's attacks on Iran on June 13. "We stand on the side of the US and Israel," Frei said. A survey has shown that many workers in Germany are staying at home to work for more days a week than their employers officially permit. In many cases, employees made unofficial agreements with their superiors, but often the rules were simply not policed, the survey from the German job portal Indeed showed. More than a quarter of the 1,000 people questioned in the survey said their direct superiors often allowed more days than permitted by their companies. The opposite also occurs, with 13.8% of respondents saying they were sometimes called into the office more often than was officially required. More than two-thirds said their employers had clearly stipulated how often work from home — known in German as "Homeoffice" — was allowed, but more than half said there was little monitoring of whether people stuck to the rules. The survey showed that more than half of respondents were not satisfied with the rules on working from home laid down by their employers and that those who could decide themselves whether and when to work from home tended to be more content with the situation. The wish of many employees to be free to work from home is also shown by the fact that more than the half of respondents said they deliberately scheduled appointments with doctors and tradespeople, for example, so they could do so. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video German customs officials stopped a van on a highway in Brandenburg carrying more than half a ton of pyrotechnics. The vehicle contained some 520 kilograms (about 1150 pounds) of fireworks, some of which, due to their hazardous classification, can only be imported into Germany with a special permit. The Potsdam Main Customs Office said the import had not been authorized and was discovered during a check near the distrcit of Spreeau, just outside Berlin. Tax criminal proceedings were initiated against the 33-year-old driver in connection with a violation of the Explosives Act. Upon opening the trunk, customs officials discovered a total of 34 boxes full of pyrotechnics as well as individual loose rockets. The driver said he had bought the fireworks for a wedding celebration and was headed from Poland to France. Police confiscated the haul. Germany's foreign minister has said Iran must engage in direct talks with the United States after recent US strikes on Iranian nuclear facilities, while affirming the European Union's continued role in diplomacy. "Iran says it only wants to negotiate with Europe and we see that as a good sign but we do also say that's not sufficient. We want to see the United States being involved," Foreign Minister Johann Wadephul told reporters in Brussels ahead of a meeting of EU foreign ministers. "I renew my call on Iran to now be ready for talks. We have, however, been asked by the US, over the last few weeks and also just now, to remain in touch and Europe does have a role," he said. Migrant arrivals in the European Union have been more highly educated in 2024 than ever before, according to a new German study. The Rockwool Foundation Berlin (RFBerlin) reports that 32.1% of migrants from non-EU countries had a university degree or equivalent qualification in 2024 — up from 30.9% in 2023. The study, released Monday, describes this as a "record level" and part of a continued upward trend over the past decade. In Germany, the share of highly educated non-EU migrants rose from 29.4% to 31.1% over the same period. For migrants from other EU member states, the percentage holding a tertiary qualification climbed from 33.8% to 35.2% EU-wide, and from 28.6% to 30.1% in Germany. "This continuous rise in education levels highlights the potential migrants bring to EU labor markets," said Tommaso Frattini, co-director of the Center for Research and Analysis of Migration at RFBerlin and professor at the University of Milan. He said that if migrants' skills are fully utilized, "they can be a key driver of economic growth across the EU." To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Almost two-thirds of Germans are in favor of a European nuclear deterrent independent of the United States, according to a new poll. The survey, conducted by the Forsa institute for "Internationale Politik" magazine, found that 64% of respondents were in favor of setting up a European nuclear shield, while 29% were opposed. Before taking office in May, German Chancellor Friedrich Merz had already signaled his intent to pursue discussions with the United Kingdom and France — Europe's two nuclear powers — on developing a joint European nuclear strategy. The goal is to reduce Europe's reliance on the US nuclear umbrella, especially amid concerns over the unpredictability of President Donald Trump. Support for a European deterrent was consistent across demographic and political lines — an unusual level of consensus on foreign policy in Germany. In western Germany, 66% backed the idea, compared to 52% in the east. Among respondents under 45, support was 58.5%, rising to 67.5% among those over 45. By party affiliation, 78% of Green Party voters supported the concept, followed by 71% of supporters of Merz's Christian Democratic Union (CDU) and its Bavarian sister party, the Christian Social Union (CSU). Support also stood at 65% among Social Democratic Party (SPD) voters, 54% among Alternative for Germany (AfD) voters, and 52% among those backing The Left. The UK's nuclear deterrent is operationally independent but technologically reliant on US systems. France's version is both operationally and technologically independent. The poll was carried out in the second week of June, before the latest escalation in the Israel-Iran conflict, which has involved direct US military action against Tehran's nuclear program. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video from a cloudy . Welcome to DW's coverage of developments in Germany on Monday, June 23. A study has found that most Germans are in favor of Europe developing a nuclear deterrent that is independent of the United States. Almost two-thirds of people who were asked said they were in favor of a shared nuclear strategy for Europe. The aim would be to reduce Europe's reliance on the US nuclear umbrella, especially amid concerns over the unpredictability of President Donald Trump. Stay with us here to keep up with the latest news from Germany.
