Have you made donations to political parties in Germany? If yes, you should know that such donations are deductible in your annual tax return. When filing your tax return, you can report the donated amount, which leads to a lower tax liability. Who can deduct party donations and party contributions from taxes? What conditions must be met for the deduction to be claimed? Read today’s article and learn the most important points about the donation deduction in Germany – we hope you enjoy reading.
Party donations and taxes in Germany
As statistics show, German citizens are very generous towards political parties in election years. The . Diefigures published by the Bundestag impressively demonstrate this: Shortly before the polling stations opened, the individual parties collected almost 11.5 million euros in donations exceeding 50,000 euros.
The reason why political parties are supported by people in Germany is mainly due to their own views and ideas. Some taxpayers still live in ignorance and do not know that party donations in Germany not only help politicians but also bring them tax benefits.
Donations to political parties in Germany – Party donations are deductible in the tax return!
Under the current tax system in Germany, donations to political parties are deductible and treated as special expenses in the tax return – just like donations for other purposes, e.g., for the church. They are considered by the legislature as a contribution to strengthening the democratic community and therefore have a positive impact on tax liability for many years since they represent a kind of reward for those who donate part of their money for the development of political groups in Germany.
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Deducting party donations 2025 – who can claim the deduction?
German citizens (natural and legal persons) can donate to selected organizations, including political parties – the donations are not limited in amount, so you as a taxpayer can donate 100 €, 1,000 €, or 10,000 € – it all depends on your willingness.
However, it is important that a party donation is only tax-deductible if the tax deduction for donations to political parties is claimed by a natural person. Legal persons, i.e., companies, cannot deduct these donations, which is directly derived from the German Income Tax Act (§ 4 (6) EStG).
Tax deductibility of donations to German political parties – Deducting party donations – two options
For a party donation, the tax deduction can be carried out in two ways.
Reduction of income tax
According to § 34g of the Income Tax Act (EStG), a German taxpayer is entitled to a tax reduction for the year in which he makes a donation to a political party.
Currently, 50% of the total donation amount is tax-deductible. However, there are certain deduction limits – for both singles and married couples filing jointly. Currently, this looks like this:
- Individuals – donations up to 1,650 €.
- Married couples – donations up to 3,300 €.
To illustrate with an example: If you donate 1,650 € to political parties, your annual tax liability is halved to . If you file a joint tax return and make a donation of 3,300 €, you can deduct an amount of 1,650 €. As mentioned before, these costs must be reported as special expenses in your annual tax return.. If you file a joint tax return and make a donation of 3,300 €, you can deduct an amount of 1,650 €. As mentioned before, these costs must be reported as special expenses in your annual tax return.. Wenn Du eine gemeinsame Steuererklärung abgibst und eine Spende in Höhe von 3.300 € tätigst, kannst Du einen Betrag von 1.650 € absetzen. Wie bereits erwähnt, müssen diese Kosten in Deiner jährlichen Steuererklärung als Sonderausgaben angegeben werden.
Excessive donation and tax
What if the donations to political parties were higher? Such donations are treated similarly, i.e., as special expenses. The difference in this case is that the deductible is not subtracted from the tax but from your taxable income. This reduces – depending on the amount of the donation – the tax rate you have to pay by this extent.
An example: If you as an individual donated 3,000 € to a political party to the German tax office, your tax liability is reduced by a maximum of 825 € (50% of the donation ceiling mentioned in the previous paragraph maximum donation amount) reduced. The rest of the donation amounting to 1,350 € (3,000 € – 1,650 € = 1,350 €) you can treat as a special expense. This is the already mentioned amount of the taxable income.
In summary, from the 3,000 € you paid, 2,175 € can be deducted for tax purposes (825 € + 1,350 € = 2,175 €). This reduces the tax payable by 825 € and the taxable income by 1,350 €.
Donations to political parties in Germany and donation receipt
If you want to deduct your donations from taxes, you need proof of payment. For donations up to 300 € (from 2021, previously 200 €) a bank statement is sufficient. For higher amounts, you need an official donation receipt. However, it is important that the proof does not have to be submitted with the tax return, but at the time the tax office requests it.
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Maciej Wawrzyniak
In his private life, Maciej enjoys sporting challenges, playing the guitar, and swimming in the lake. He is also the proud father of three sons.
