Mad Daniel Kanzlei – Accounting & Law Firm in Germany | Bookkeeping, Taxes & Legal Services

Construction tax exemption (Freistellung)

Construction worker holding a Freistellung certificate at a construction site.

Freistellung – construction tax exemption in Germany

In Germany, construction services are subject to a 15% withholding tax (Bauabzugsteuer). With a valid Freistellungsbescheinigung (tax exemption certificate), companies can avoid this deduction.

Who needs Freistellung?

  • Construction companies from Germany and abroad
  • Subcontractors and construction service providers
  • Contractors regularly working in construction projects

Benefits of Freistellung:

  • No deductions from your clients
  • Improved cash flow
  • Legal certainty with tax authorities and partners

Our services:

  • Filing applications and handling communication with tax offices
  • Reviewing and extending certificates
  • Support for cross-border construction projects

Award winning support

We're here to help

Get in touch – we’ll respond and guide your case end‑to‑end.