Futter, Tierarzt und Co: Wann Kosten für Hund und Katze steuerlich absetzbar sind

Many pet owners consider their dogs, cats, and horses as part of the family. However, from a tax perspective, these animals are generally seen as personal luxuries, and the costs associated with them – such as food, veterinary visits, toys, or accessories – cannot usually be deducted from taxes. There is one exception that might surprise some pet owners.

Daniela Karbe-Geßler, representative of the Bund der Steuerzahler, explains that "if someone cares for their pet at home, the expenses can be considered a household service under certain conditions." This includes feeding and caring for a cat or looking after a dog. Even a dog walking service can be tax-advantaged. The Federal Finance Court has ruled that taking a dog out of the household and returning it can be recognized as a household service, provided the dog is picked up and returned to the home.

The location of care can make a difference. The advantage is that 20 percent of the eligible costs are directly deducted from income tax, up to a maximum of 4,000 euros per year. For example, if someone pays 1,000 euros for a care service, their tax could be reduced by 200 euros. However, a payment in cash or a lack of documentation would result in no benefit.

When a pet is cared for outside the household, the tax deduction generally does not apply. Veterinary costs, medications, food, toys, pet tax, or the purchase of a carrier remain tax-deductible only for privately owned animals. However, if the animal is used for professional purposes, things become interesting. A school or therapy dog, for instance, could lead to a professional portion of the costs being considered advertising expenses.

In a case decided by the Federal Finance Court, the half of the ongoing care costs for a therapy dog used regularly in class were recognized as professionally necessary. The training to become a therapy dog was fully classified as professionally necessary in the decisive case. Karbe-Geßler adds that "a pet liability insurance can generally be considered an investment under the condition that the highest amounts for other investments have already been used up."

Therefore, the general rule is that the animal itself usually remains a private matter, while its care at home or a clearly documented professional use can be tax interesting.