Household Service Tax Credit: Who Qualifies and What You Get
Learn how to deduct 20% of your home service labor costs from your annual tax bill to reduce what you owe.
This scheme allows you to reduce your tax bill by claiming back a portion of the money you spend on services performed in your home.
Who it's for
This is available to anyone who pays for services provided within their household, such as professional cleaning or various home repairs.
What you get
You can receive a tax reduction equal to 20% of the labor costs associated with these services. This deduction is capped at a maximum of 4,000€ per year.
What it costs you
To qualify, you must pay for the services using a bank transfer. You cannot claim this credit if you pay the service provider in cash.
The catch to know
The tax credit applies only to the cost of the labor performed. It does not cover the cost of any materials or parts used during the service.
How to apply
- Keep all receipts and invoices from your service providers.
- Ensure every payment is made via bank transfer rather than cash.
- Include these costs when you file your annual tax return.
- Check with your local tax office for specific documentation requirements.