Tuition & Cost of Living

In Germany, tuition can be claimed on tax returns and the tax savings can be used to partially finance students’ degrees.

All master’s degree students can claim all the costs of their degree program as anticipated income-related expenses before graduating and after completing their vocational training, and carry them forward over their time enrolled as cumulative losses – assuming they had no or very little income in that time. Loss carry-forwards make this possible: the losses that students incur because they are studying are offset from their incomes after graduation in subsequent years. This reduces the income for which taxes are due. The costs associated with the semester abroad and tuition are deductible.

It is only possible to take advantage of loss carry-forward if the degree program is a second degree (master’s degree after the bachelor’s or a bachelor’s degree after an apprenticeship). The costs of first degrees can be deducted as a special expense up to a limit of €6,000. Study-related expenses only have an effect in the same year and only result in tax benefits for people whose incomes are high enough that they actually pay income tax in Germany. The Federal Constitutional Court is reviewing the regulation regarding the costs of the first degree. For this reason, students should always claim their study-related expenses as income-related expenses on their income tax returns.

If students participate in the Brain Capital plan and defer payment of tuition fees, the fees can be deducted as soon as payment is initiated (outflow principle). 

*non-committal statement as KLU is not allowed to act as a tax advisor.