Abzugsteuer - Withholding tax refund
Abzugsteuer is the construction withholding tax of 15 % that applies to all construction work carried out in Germany. It applies when a company or sole trader does not hold a Freistellung (an exemption from the construction withholding tax). In that case the client has to withhold 15 % of every invoice once the amount of €5,000 including VAT is exceeded and pay it to the German tax office.
How does the Abzugsteuer work?
A 15 % deduction – if you do not hold a Freistellung, the client deducts 15 % of the invoiced amount and pays it to the tax office.
A Freistellung removes the deduction – with a Freistellung you do not have to worry about it and can invoice without this extra tax burden.
Important for construction companies – it applies to all construction work carried out in Germany, from smaller jobs to large building projects.
How does the application work?
You fill in the form
Just fill in a short form, we will help you with everything.
You send the documents
Send us the documents we need — we will tell you exactly which ones.
You sign the application
You sign the application and we take care of the rest.
Frequently asked questions
Basic package
£52.89incl. VAT
£52.89incl. VAT
For clients whose withheld tax was up to €450.
The service includes
- communication with the authorities
- the full documentation prepared
- the application filed
Popular package
£189.42incl. VAT
£189.42incl. VAT
For clients whose withheld tax was over €450.
The service includes
- communication with the authorities
- the full documentation prepared
- the application filed
Premium package
On requestprice depends on scope
On requestprice depends on scope
If the withheld amount is over €2,000, the fee is 10 % of that amount. For an exact quote, contact us by phone or email.
The service includes
- everything in the Popular package
Please contact us for an exact quote. We will gladly prepare a tailored offer.
This price list is valid from: 31/08/2026
Elster - Registration
Do not rely on the post, nothing gets lost electronically. Set up Elster for faster communication with the German tax office.
Freistellung - First time
Avoid the withholding tax in Germany – we will arrange your Freistellung quickly and without complications.
Erinnerung - Tax office reminder
Have you received a notice from the German tax office, a so-called Erinnerung? It is an official reminder from the German tax office (Finanzamt) and if you do not respond to it, you risk a fine or even losing your certificates and permits.
Handwerkskammer - Chamber of Crafts registration
We will arrange your registration with the Handwerkskammer quickly and without hassle, so that you can focus fully on your business in Germany.
Soka Bau - Company registration
Do not forget your obligations – we will handle your SOKA-BAU registration for you.