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[BUSINESS] · Germany · 10 sources

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German tax rules let grandparents deduct childcare costs

Grandparents who look after grandchildren during school holidays can claim a tax deduction in Germany. According to Jana Bauer, managing director of the Bundesverband Lohnsteuerhilfevereine (BVL), childcare expenses for children up to age 14 are deductible at 80 % of the cost, up to a maximum of €4,800 per child per year. The deduction requires a written invoice, contract or benefit notice and the payment must not be made in cash.

Travel reimbursements for grandparents are also eligible. Costs such as bus or train tickets, or a mileage allowance of up to €0.30 per kilometre for car use, can be claimed if documented. For example, an aunt who drives 160 trips of 30 km each could receive a reimbursement of €1,440, resulting in a tax deduction of €1,152.

The guidance applies to the 2026 tax year and aims to support families when regular childcare facilities are closed or limited during holidays.

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Bundesverband Lohnsteuerhilfevereine (BVL) · German income tax law · Germany · Jana Bauer

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