{"id":1302,"date":"2025-05-14T15:15:08","date_gmt":"2025-05-14T13:15:08","guid":{"rendered":"https:\/\/www.ghm-partners.de\/is-the-denial-of-tax-relief-for-craftsmens-services-for-swiss-real-estate-contrary-to-european-law\/"},"modified":"2025-07-31T16:49:48","modified_gmt":"2025-07-31T14:49:48","slug":"is-the-denial-of-tax-relief-for-craftsmens-services-for-swiss-real-estate-contrary-to-european-law","status":"publish","type":"post","link":"https:\/\/www.ghm-partners.de\/en\/is-the-denial-of-tax-relief-for-craftsmens-services-for-swiss-real-estate-contrary-to-european-law\/","title":{"rendered":"Is the Denial of Tax Relief for Craftsmen&#8217;s Services for Swiss Real Estate Contrary to European Law?"},"content":{"rendered":"<div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-1 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-flex-wrap:wrap;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap\" style=\"max-width:1185.6px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-0 fusion_builder_column_1_1 1_1 fusion-flex-column\" style=\"--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;\"><div class=\"fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column\"><div class=\"fusion-text fusion-text-1\"><p>The <strong>Cologne Tax Court<\/strong> considers it possible that persons liable to tax in Germany should be granted a tax reduction for craft and household-related services in Switzerland. In its decision published today of 20.02.2025 (<a href=\"https:\/\/nrwe.justiz.nrw.de\/fgs\/koeln\/j2025\/7_K_1204_22_Beschluss_20250220.html\" target=\"_blank\" rel=\"noopener\">7 K 1204\/22<\/a>), the 7th Senate submitted <strong>the question to the Court of Justice of the European Union (ECJ) in Luxembourg for a decision as to whether the denial of a tax reduction for households located in Switzerland violates the Agreement on the Free Movement of Persons between the EU and Switzerland (FZA).<\/strong> <\/p>\n<p>The plaintiffs, a married couple with German and Swiss citizenship, live in Switzerland. The husband was employed in Germany and maintained an apartment in Germany for this purpose. For the shared house in Switzerland, the couple commissioned various craft and gardening work within the meaning of \u00a7 35a of the Income Tax Act (EStG). In this regard, they requested a reduction of their income tax. The tax office rejected this with the note that the services had been carried out in Switzerland (see \u00a7 35a paragraph 4 sentence 1 EStG). The couple filed a lawsuit against this at the Cologne Tax Court. The tax office&#8217;s view violates the Agreement on the Free Movement of Persons between the European Union and Switzerland.      <\/p>\n<p>The judges of the 7th Senate followed this. In their submission decision, they doubt whether it is compatible with the Agreement on the Free Movement of Persons that the tax reductions can only be claimed for services that are carried out or provided in a household located in the European Union or the European Economic Area. The Agreement on the Free Movement of Persons applicable to the dispute contains a right to equal treatment with regard to tax benefits (see Article 9 paragraph 2 Annex I to the FZA). The plaintiffs could possibly invoke this. A disadvantage to the plaintiffs compared to domestic taxpayers is not justified.    <\/p>\n<p>The decision is in line with many other fiscal court and European law decisions in which Switzerland is increasingly treated like an EU\/EEA country for tax purposes.<br \/>\n This can be observed, for example, when moving away, but also with inheritance tax and gift tax.<\/p>\n<p><em>(Press release from the Cologne Tax Court of 25.03.2025; file number of the preliminary ruling procedure at the ECJ: C-223\/25)<\/em><\/p>\n<\/div><\/div><\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Cologne Tax Court considers it possible that persons liable to tax in Germany should be granted a tax reduction for craft and household-related services in Switzerland.<\/p>\n","protected":false},"author":1,"featured_media":900,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[],"class_list":["post-1302","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-international-tax-law"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Is the Denial of Tax Relief for Craftsmen&#039;s Services for Swiss Real Estate Contrary to European Law? - GHM GmbH Steuerberatungsgesellschaft<\/title>\n<meta name=\"description\" content=\"Is the denial of tax relief for craftsmen&#039;s services for Swiss real estate contrary to European law?\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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