Employing Family Members as Minijobbers: Save Taxes as a Landlord
Many landlords manage their properties within the family: a partner handles the utility bill statements, a son coordinates tradesmen appointments, a daughter responds to tenant enquiries. What is often overlooked: this work can be officially remunerated – and the wage costs are deductible as income-related expenses against rental and leasing income. The tax office effectively contributes to paying your family members.
How does the principle work?
As a landlord, you can employ family members – such as your spouse or civil partner, adult children, or parents – as minijobbers, provided they actually carry out tasks within your rental activity. The wage of up to €603 per month is then deductible as income-related expenses and reduces your taxable income from rental and leasing.
Typical activities suitable as a minijob:
- Preparation of utility cost statements
- Communication with tenants (correspondence, calls, complaint management)
- Coordination and supervision of tradesmen appointments
- Bookkeeping and document management
- Research into new rental properties
- Property maintenance (e.g. garden work, stairwell cleaning)
💡 Tax benefit: up to 45% of total costs reimbursed
If you are in the top tax bracket, you save up to 45 cents in income tax for every euro of income-related expenses. This means the actual net cost of the minijob is significantly lower than the amounts paid out. In practice, the tax benefit remains noticeable for landlords with a moderate income from a marginal tax rate of 30–35%.
What does a minijob actually cost the employer?
As an employer, you pay flat-rate contributions to the Knappschaft (Minijob-Zentrale) in addition to the salary. These currently amount to around 30% of the gross salary and cover pension insurance, health insurance, and a flat-rate payroll tax. The minijobber themselves pays no further income tax on this income – an additional advantage for many families.
📊 Calculation example: monthly costs and tax benefit
Monthly salary to family member: €603 Flat-rate contributions Knappschaft (approx. 30%): €181 Total deductible expenses: €784 Tax benefit at 42% marginal tax rate: €329 per month Tax benefit at 45% top tax rate: €353 per month Effective net cost per month (at 42%): €784 – €329 = €455 Effective net cost per month (at 45%): €784 – €353 = €431 Total benefit per month (at 42%): €603 – €455 = €148 Total benefit per month (at 45%): €603 – €431 = €172 Over the year: up to €2,064 benefit within the family – through the higher payout to the family member (€7,236 per year) versus your effective net cost (€5,172 per year at 45% top tax rate).
Special rules for married couples filing jointly
A common question: can the spouse employed as a minijobber simply omit the salary in the joint income tax return? Yes – and this is actually correct. Because with a minijob, the employer (i.e. you) remits the flat-rate payroll tax to the tax office. The employee does not need to declare the minijob income again in their private tax return. This means: you deduct the personnel costs as income-related expenses, but your spouse does not pay tax on the salary a second time.
⚠️ Caution: the employment relationship must withstand an arm's length comparison
The tax office only accepts employment relationships between relatives if they withstand a so-called arm's length comparison – meaning they are structured as they would be with an unrelated employee. This requires: a written employment contract with a clear job description and working hours, regular and verifiable salary transfers to the family member's own account, and a real, documented work performance.
Legal obligations as an employer
These obligations must be fulfilled as an employer:
- Written employment contract with job description, working hours, and remuneration
- Registration with the Minijob-Zentrale (Knappschaft) before employment begins
- Monthly payroll statement and salary transfer
- Working time records (e.g. simple hourly log)
- Monthly remittance of flat-rate contributions to the Knappschaft
💡 Keeping administrative effort low
Payroll processing for a minijob is comparatively straightforward. Many tax advisors and payroll offices offer monthly accounting for under €20. This effort is worthwhile given potential tax savings of several thousand euros per year.
Let all tax tricks be applied automatically
What good is the best knowledge if you don't act on it? As our client, you benefit from our expert advice – we apply all relevant tax opportunities for you and optimize your tax return individually.
Free & no-obligation · No risk
Haftungsausschluss: Die in diesem Artikel bereitgestellten Informationen dienen ausschließlich allgemeinen Informationszwecken und stellen keine rechtliche oder steuerliche Beratung dar. Trotz sorgfältiger Recherche können wir keine Gewähr für die Richtigkeit, Vollständigkeit und Aktualität der Inhalte übernehmen. Die dargelegten Sachverhalte ersetzen keine individuelle und verbindliche Beratung durch einen approbierten Steuerberater oder Rechtsanwalt. Eine Haftung für Schäden, die durch die Nutzung dieser Informationen entstehen, ist ausgeschlossen.
