How much can I deduct for sending money to my parents in India on my German tax return?

For the 2025 tax year, you can deduct up to €11,784 per supported person, but a country-specific adjustment factor applies for India. Germany's Finanzamt applies a 1/4 factor for India, which means the maximum deductible amount is €2,946 per parent. Married parents living together share one limit, resulting in a combined maximum of roughly €3,024 after rounding adjustments.

What documents does the Finanzamt need to prove I support my parents in India?

You need bank transfer receipts showing regular remittances, a signed declaration (Unterhaltserklärung) from your parents confirming they receive and depend on the support, proof of their low income (such as an income certificate from a local authority or IT return), and their passport copies. All documents in languages other than German may need certified translation.

Can I claim this deduction if my parents have pension income or rental income in India?

Yes, but your parents' own income and assets are factored in. If a parent's net income exceeds €624 per year (after the Ländergruppe adjustment), the excess reduces your deductible amount euro-for-euro. Small pensions are usually fine, but significant rental income could shrink or eliminate the benefit.

Do I file Anlage Unterhalt separately for each parent?

Yes. You must file a separate Anlage Unterhalt for each person you support. If you support both parents, you submit two Anlage Unterhalt forms as part of your 2025 Steuererklärung. Each form captures one parent's personal details, their income, and the amounts you sent.

Sending Money to Parents in India? Claim Up to €3,024 on Your 2025 German Tax Return via Anlage Unterhalt

You Send Money Home Every Month — the Finanzamt Can Give Some of It Back

If you're an Indian expat in Germany, there's a good chance you're sending money to your parents in India regularly. Maybe it's ₹20,000 a month for your mother's medical expenses. Maybe it's ₹30,000 to cover your father's household costs after retirement. It's what we do — it's family.

What most people don't realize is that German tax law recognizes this financial support and lets you deduct it from your taxable income. The mechanism is called Unterhalt für bedürftige Personen (maintenance for dependent persons), and you claim it through Anlage Unterhalt in your 2025 Steuererklärung.

Let's break down exactly how this works, what you can claim, and what the Finanzamt expects from you.

How Anlage Unterhalt Works: The Basics

Under § 33a Abs. 1 EStG (German Income Tax Act), you can deduct payments made to support relatives who cannot support themselves. This applies to parents, grandparents, or other close relatives — even if they live abroad.

For the 2025 tax year, the key numbers are:

Maximum deduction per person: €11,784 (this is the German Grundfreibetrag)
Country adjustment factor for India: 1/4 (Ländergruppe 4)
Effective maximum per parent: €2,946
Income threshold for the supported person: €624 (also adjusted by country group)

Why the 1/4 Factor?

Germany groups countries by cost of living. India falls into Ländergruppe 4 (the lowest group), which means the Finanzamt applies a 25% factor to all amounts. This reflects the lower cost of living in India compared to Germany.

🧮Anlage Unterhalt deduction formula for India

Maximum deduction per parent = €11,784 × 1/4 = €2,946

If the parent's own net income exceeds €624 × 1/4 = €156/year, the excess reduces your deduction euro-for-euro.

Your actual deduction = min(amount sent, €2,946) − max(parent's net income − €156, 0)

A Realistic Example: Rajesh Supports Both Parents

Let's walk through a real-world scenario.

📘Rajesh — IT professional in Munich, sends ₹25,000/month to each parent

Rajesh (32) works as a software developer in Munich, earning €68,000/year. His father (62) is retired with a small pension of ₹8,000/month. His mother (58) has no income. Rajesh sends ₹25,000/month to each parent via wire transfer — that's ₹6,00,000/year total (₹3,00,000 per parent).

He files his 2025 Steuererklärung in 2026 and submits two Anlage Unterhalt forms — one for each parent.

Let's calculate Rajesh's deduction step by step.

For Rajesh's Mother (No Income)

For Rajesh's Father (Small Pension)

Rajesh's Combined Tax Saving

That's roughly €1,742 back in Rajesh's pocket — for money he was sending home anyway.

💡What if both parents have zero income?

If neither parent has income, you could claim up to €2,946 × 2 = €5,892 in total deductions. At a 35% marginal rate, that's roughly €2,062 in tax savings. Even with India's country group reduction, this is real money.

What the Finanzamt Wants: Documentation Checklist

This is where most Indian expats stumble. The Finanzamt takes Anlage Unterhalt claims seriously, especially for overseas support. Incomplete documentation is the #1 reason claims get rejected.

Here's what you need for each parent you claim:

Mandatory Documents

Bank transfer receipts — Every single transfer for the year. Use bank wire (SWIFT), not cash via friends or informal channels. The Finanzamt needs a clear paper trail showing your name, their name, and the amounts.
Unterhaltserklärung (maintenance declaration) — A signed statement from your parent confirming they receive financial support from you and depend on it. This should mention amounts and frequency.
Proof of low income — Your parent's income tax return from India, or an income certificate from their local municipal authority or tehsildar. If they have no income, a declaration of no income works.
Proof of relationship — Birth certificate or family certificate showing your relationship.
Passport copies of both parents.
Address proof in India (Aadhaar card is commonly accepted).

Good to Have

Medical bills — If part of your support covers medical costs, these strengthen the "dependency" argument.
Certified German translations — While some Finanzämter accept English documents, many insist on German. A sworn translator (beeidigter Übersetzer) can certify the key documents.

⚠️Cash transfers won't count

If you send money via cash, hawala, or informal channels, the Finanzamt will reject the claim outright. Always use traceable bank transfers (SWIFT/wire or services like Wise that provide full transaction receipts with sender and receiver details). The Finanzamt needs to see your bank account → their bank account clearly documented.

Before vs. After: What This Deduction Looks Like on Your Return

Common Mistakes to Avoid

1. Filing Only One Anlage Unterhalt for Both Parents

You need one form per person. Two parents = two Anlage Unterhalt submissions. This is a frequent oversight.

2. Forgetting to Convert to Euros

The Finanzamt doesn't work in rupees. Convert all amounts using a recognized exchange rate (the ECB annual average rate or the rate on the transfer date). Be consistent in your method.

3. Not Declaring Your Parents' Income Accurately

If your parent receives even a modest pension, agricultural income, or rental income in India, you must declare it. Under-reporting can lead to the entire claim being rejected — and potentially a penalty.

4. Irregular Transfers

Sending one large lump sum in December looks suspicious. Regular monthly or quarterly transfers are much stronger evidence of genuine ongoing support.

From the Finanzamt Files: A Lesson Learned

Names and amounts changed for privacy.

Anita, a PhD researcher in Berlin, had been sending approximately €250/month to her widowed mother in Chennai for three years. She never claimed Anlage Unterhalt because she didn't know it existed. When she finally learned about it during a TaxDost workshop, she filed for the current year with proper documentation — bank receipts, her mother's income certificate from the tehsildar, and a signed Unterhaltserklärung.

Her refund for that year included roughly €880 extra just from the Anlage Unterhalt deduction. Three previous years of potential deductions were lost simply because she didn't know.

Don't be Anita for longer than you have to. If you're supporting family in India, file it.

Key Deadlines for Your 2025 Tax Return

| Filing Method | Deadline | |---|---| | Self-filing (including via TaxDost) | 31 July 2026 | | Via a licensed Steuerberater | 28 February 2027 |

You're filing your 2025 Steuererklärung right now in 2026. There's still time before the 31 July 2026 deadline, but gathering Anlage Unterhalt documents from India takes time — start now.

Quick Eligibility Check

Ask yourself these questions:

✅ Do you send money regularly to parents/grandparents in India?
✅ Are they financially dependent on you (low or no income)?
✅ Do you transfer via bank (traceable receipts)?
✅ Can you get a signed declaration and income proof from them?

If you answered yes to all four, you almost certainly qualify for this deduction.

Let TaxDost Handle the Details

Anlage Unterhalt is one of those deductions that's straightforward in theory but tricky in practice — especially when the Finanzamt asks follow-up questions about Indian income certificates or wants specific document formats.

At TaxDost, we've helped hundreds of Indian expats in Germany claim exactly this deduction. Our platform walks you through the Anlage Unterhalt step by step, tells you exactly which documents to gather, and handles the conversion and filing for you.

Your parents depend on you. Your tax return should reflect that.

👉 Start your free 2025 tax estimate at taxdost.de and see how much you could save with Anlage Unterhalt — it takes under 10 minutes.