Moving to New Zealand = What are the costs?
May 24, 2010 | 30,00 EUR | answered by Matthias Wander
Dear Sir or Madam,
I resigned from my job in Germany on 31.10.2008 and emigrated to New Zealand. It was not due to professional reasons, but rather a search for a new personal challenge. At that time, I did not have a job in New Zealand yet. Additionally, my application for permanent resident status in New Zealand was still pending. The status of "permanent resident" is now a requirement to work in New Zealand. After several months of vacation, I have been working in New Zealand since June 2009 and have obtained permanent resident status.
My question is: Can I deduct anything according to tax law or court decisions now? The following expenses could be considered: - Flight costs - Application for "permanent resident status in New Zealand" - Language course, language test - Costs of selling a house, dissolution of apartment in Germany
Thank you in advance.
PS: The above expenses were not recognized by the Hamburg tax office without further explanation.
Dear Mr. Schoessler,
Thank you for your inquiry, which I would like to answer based on your information and in the context of your use within an initial consultation.
Expenses can only be deducted for tax purposes if they are closely related to taxable income (business expenses) or if this is otherwise legally permitted (special expenses, extraordinary burden). Business expenses are expenses for the acquisition, security, and maintenance of income. Moving expenses are business expenses if and to the extent that they are work-related.
Since your move to New Zealand was purely private, the expenses you listed are not business expenses, but rather costs of private living, which are not deductible according to § 12 EStG. A deduction as special expenses or extraordinary burden is also not possible.
Therefore, the tax office rightly did not recognize the expenses.
I regret that I cannot provide you with a more favorable answer.
Best regards,
Wander
Tax consultant
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