Here’s the deal
- You can employ relatives who do not live in your household as domestic help in the usual way, for example as a mini-job, and claim the tax deduction under § 35a.
- For family members living in the same household (spouse, children, partner), there is no recognized employment relationship, and § 35a does not apply.
- The key is the arm's length principle: the contract, wages, and day-to-day operations must be the same as they would be between unrelated parties.
- A written employment contract, a market-rate wage, and payment via bank transfer are mandatory for the arrangement to be recognized.
- The mini-job threshold of €603 per month applies here as well.
Your mother helps out with cleaning, your adult daughter looks after her younger siblings, and the question quickly arises: can I pay for this and deduct it from my taxes? In principle, yes, but it comes down to one key point: whether the person lives in your household. Here is what you need to know about when hiring relatives is worth it and what the tax office looks for.
Can I hire relatives as domestic help?
Yes, as long as they do not live in your household. A relative who has their own home—such as your mother in her own apartment or a child who has moved out—can be hired by you as a domestic worker just like anyone else. You register the job, pay the wages and contributions, and claim the tax rebate just as you would with an external helper.
The only difference compared to an external cleaner is that the tax office will scrutinize whether the employment relationship with a relative is genuine.
Why doesn't this work with family members living in the same household?
Because help between relatives living together is considered a standard family favor, not paid work. Therefore, no tax-recognized household employment relationship can be established between spouses, or between parents and children living in the same household. The same generally applies to registered civil partners and cohabiting couples.
In practice, this means: if your husband mows the lawn or your daughter living at home cleans, you cannot register it as a mini-job or deduct it under § 35a. A genuine employment relationship is only possible if the person lives outside your household.
What is the arm's length principle?
This is the tax office's primary test. An employment relationship with a relative is only recognized if it is structured and carried out exactly as it would be between strangers. Specifically:
- a written employment contract detailing tasks, working hours, and wages
- a market-rate wage that is neither conspicuously high nor merely symbolic
- the actual performance of the agreed-upon work
- payment of wages via bank transfer, not in cash
If any of these elements are missing—for example, if there is no contract or wages are paid in cash—the tax office will view this as evidence against a genuine employment relationship. You can find out what a proper contract looks like in our post Employment contract for a domestic helper.
How do I register a relative?
Exactly the same way as any other domestic worker. If the relative lives outside your household and meets the arm's length criteria, registration follows the standard process: as a mini-job via the Haushaltsscheck with the Minijob-Zentrale, or, for higher wages, subject to social security contributions via their health insurance provider. The mini-job threshold for 2026 is €603 per month.
A step-by-step guide on how to register is available in our blog post Hiring a domestic helper, and the difference between the types of job is explained in the article Mini-job or midi-job.
Am I eligible for the tax rebate?
Yes, provided there is a formal employment relationship. If you employ a relative who lives elsewhere and the arm's length principle is met, the tax rebate under § 35a EStG applies just as it does for any other helper: you receive 20% of the costs back directly as a tax credit, up to a maximum of €510 per year for a mini-job. Here, too, the wage must be paid via bank transfer. You can find the details in our post Tax rebate for household help.
Whether you are required to register depends entirely on whether an employment relationship exists. You can find more on this in the article Registration requirement for domestic help.
What does quitt handle for me?
quitt is an app-based service that manages the employment of your domestic worker for you, even if they are a relative. You enter the key details, and quitt draws up the employment contract, registers the job, and handles wage and contribution payments. Because everything is properly documented and the wages are processed through quitt, the arm's length principle is automatically satisfied.
You remain the employer at all times and decide who you hire and what you pay. quitt takes care of the administrative work behind the scenes.
Found a relative to help you out? Start the registration and quitt takes care of the rest. You can see our service costs on the pricing page.
quitt also handles relatives correctly
quitt draws up the contract, registers the job, and handles the payroll, ensuring full compliance. You remain the employer, and we take care of the rest.
