General Information on Home Care
What demands attention in general, and what requirements must be met for care at home?
Care for dependents in their private households can be provided, according to the Austrian Home Care Act (Hausbetreuungsgesetz), by self-employed or non-self-employed caregivers. The question of whether the caregiver is self-employed or non-self-employed (i.e. working in the context of an employment relationship) is addressed essentially by assessment of the contents of the contract. If a model contract for independent care activities (“contract for work and labour”) is used, the revenues are rated as “income from industrial or commercial activities” (Einkünfte aus Gewerbebetrieb). In the case of non-self-employed foreign caregivers, under certain circumstances a permit under the labour market law may be required.
If an organisation provides only the placement of caregivers, a contractual arrangement between the caregiver and the care recipient (or the latter’s relatives) is still required.
If a foreign caregiver lives in the household of the care recipient, the caregiver is subject to full tax liability in Austria. In the case of self-employment, the residence of the care recipient is to be regarded as the operational establishment as well. If no place of residence or regular domicile is established in Austria, full tax liability in Austria can be opted for if the foreign income does not exceed EUR 11,000.
Regardless of whether the care is provided by a self-employed or a non-self-employed person, care expenses are tax deductible as extraordinary burdens if and insofar as they exceed tax-free reimbursements.
For more detail information please consult the Tax Book 2018 or check the link "Hausbetreuung und Pflege" (in German).