Can a neighbour help me for money?
It depends. Genuine neighbourly help, self-help and favours among friends, relatives or neighbours are allowed — even for a small thank-you (an allowance, a meal, material costs), as long as they aren't sustainably aimed at profit. It becomes undeclared work under the Undeclared Work Act (SchwarzArbG) when someone regularly performs services for pay without registering a trade, paying tax or social contributions — or while drawing social benefits without declaring it. The commissioner can be held responsible too.
📋 The rules
- Allowed: neighbourly help, self-help, favours (not aimed at profit)
- A small thank-you/expense cover does no harm
- Undeclared work: regularly for pay without trade/tax/social contributions
- Drawing benefits (e.g. citizen's income) undeclared + paid work counts
- The commissioner is also (co-)responsible
🔓 Exceptions
- Free help and favours among relatives/neighbours are unrestricted
- Club/voluntary work with a reasonable expense allowance
- Small, occasional help for material costs/a small tip
⚠️ Penalties & fines
Undeclared work is an administrative offence (a crime in serious cases): fines up to €50,000 for the person doing it, and for grave breaches (e.g. withholding social contributions) far more and imprisonment. The commissioner can be fined too. Add back-taxes, and with botched work you as commissioner have hardly any warranty or insurance claims.
📎 Official sources
- Undeclared Work Act (SchwarzArbG) · statute →
- Customs · What is undeclared work? →
- Verbraucherzentrale · Neighbourly help vs undeclared work →
❓ Frequently asked
Is neighbourly help allowed?
Yes. Helping friends, relatives or neighbours as a favour — even for a small thank-you, a meal or material-cost cover — isn't undeclared work, as long as it isn't regular and aimed at profit.
When does it become undeclared work?
When someone works regularly for pay without registering a trade, paying tax or social contributions — or draws social benefits without declaring the income. Then the Undeclared Work Act applies.
Can I give money for the help?
A small thank-you or material-cost cover, yes. But once you pay a usual 'wage' for a service and the helper does it commercially and untaxed, it can be undeclared work — and you as commissioner are affected too.
What's the penalty for undeclared work?
Fines up to €50,000 for the person doing it, more and even prison in serious cases. The commissioner can also be fined. Add back-taxes — and with defects you lack warranty and insurance cover.
Does it also apply to cleaning or tradesman help?
Yes. Anyone who regularly cleans, renovates or repairs and is paid untaxed is doing undeclared work. For household services, legal registration (e.g. a mini-job) pays off and can even be tax-deductible.
🔎 Common searches
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