Study abroad tax deductible

Studying abroad can be tax-deductible if certain conditions are met. Students can claim tuition fees, accommodation costs, travel expenses and meals. You should therefore collect receipts carefully and include them in your tax return. Second degree programmes often offer even more tax benefits.

Basics of tax deductibility

Tax deductibility makes it possible to claim costs for studying abroad in your tax return. Deductible expenses include tuition fees, accommodation costs and travelling expenses. Additional expenses for meals and health insurance abroad can also be recognised. The tax office recognises these costs as income-related expenses if they can be substantiated by receipts or other means.

When you deduct the costs, your taxable income is reduced, which means you pay less tax. The tax office does not refund you the money directly, but recalculates your tax burden so that you have to pay less tax. 

If you currently have no income, you can offset the losses incurred against your income in later years. In this way, you also benefit retroactively from tax deductibility as soon as you start earning as a doctor yourself. 

What expenses can be deducted from my tax return?

A wide variety of costs can be claimed for tax purposes when studying abroad.

Here is an overview of the most important deductible expenses:

• Tuition feesThe Studying medicine abroad is usually associated with considerable fees that you have to pay to the university.
• AccommodationRent and ancillary costs for your flat or WG during the semester or course of study abroad.
• Travelling expensesReturn flights and journeys to exams and seminars.
• Catering and cost of livingAdditional subsistence expenses during the stay abroad are tax-deductible as a lump sum.
• Teaching materialsBooks, writing materials and technical equipment such as laptops are available to students both in Germany and at a Semester abroad or studying abroad are tax-deductible.
• International health insurance: During your time studying abroad, you will of course need appropriate insurance cover.
• Language courses and preparation testsFees for the TOEFL test and similar exams.
• Student loan: If you take out a loan for your semester or study abroad, this is also tax deductible.

If you do not have your own income during your studies abroad, the deducted costs can be claimed later when you start your first job in Germany. This means you can also benefit from tax deductibility retrospectively and save money in the long term. A tax advisor can help you make the most of all the options available to you.

The important difference between first and second degree programmes

Your medical studies are considered initial training if you have not previously completed any other studies or training. So-called income-related expenses are not tax-deductible here. However, you can deduct costs such as tuition fees, accommodation or meals as special expenses. However, this must be done in the same year and is limited to a maximum of 6,000 euros per year.

The situation is different for a second degree programme, such as a Master's degree or further training. Here, all costs incurred can be deducted as income-related expenses. These include costs for a semester abroad, student loans and necessary study materials. 

Accommodation and meals during a stay abroad can also be claimed for tax purposes. The tax office recognises these expenses if the relevant receipts are available.

This offers you considerable tax advantages and can significantly reduce your financial burden. If you are already in education, you should therefore make sure to correctly deduct your medical studies from your taxes and secure all the benefits.

Does studying medicine after the first state examination count as a second degree?

Unfortunately, you cannot deduct income-related expenses if medicine is your first degree programme. Instead, you have to claim your costs as special expenses from the tax office. 

While a Master's degree programme is always considered a second degree, as the Bachelor's degree is already available, this is not the case in the advanced phase of medical studies, such as the practical year (PJ). This is due to the fact that the only degree sought is the state examination and the aim is never to complete only the first part of the medical degree programme.

Special regulations for semesters abroad or studying abroad

A semester abroad or studying abroad can offer exciting experiences and is sometimes the only way to get a place to study medicine. 

In order for the stay abroad and the costs for the university to be tax-deductible, it is important that the degree is recognised in Germany without any problems. 

The tax office also checks whether the planned coursework is actually being completed.

Frequently asked questions about the deductibility of costs for studying medicine abroad

What happens if I drop out of my degree programme?

If you discontinue your studies, a semester or internship abroad will of course end automatically. However, costs already incurred generally remain deductible. It is advisable to consult a tax advisor for the exact details. They can explain everything you need to consider with regard to tax after dropping out of your studies.

Scholarship and BAföG: What must be offset?

If you receive BAföG during your stay abroad, you must offset this against the costs you have incurred and can therefore deduct less overall. A scholarship, on the other hand, does not have to be offset.

Can parents deduct financial support for their children from their taxes?

Parents can deduct financial support for their children's study or training endeavours from their taxes. In the case of medical studies, your parents must prove that you are enrolled at a university and are studying in accordance with the valid study regulations. This also applies during a semester abroad.

Take advantage of the opportunities and claim your costs against tax

You have many options for claiming the costs of your studies or semester abroad against tax. The student unions also regularly publish interesting articles on this subject. Make sure you are well informed about your tax advantages during a semester or study abroad. 

Important note:
Even if we give you some tips and advice on how you can deduct your study abroad from your taxes, we recommend that you always use the services of a tax advisor. This article does not constitute legal or tax advice and we accept no liability for the statements made.