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Retention period private documents
According to the law, businesses have an obligation to keep certain documents, records and accounts. The situation is different for private documents. The retention periods under commercial or tax law do not apply to private individuals. In general, there are few retention obligations here, but there are recommendations that a retention period should also be observed for certain private documents. This applies, for example, to documents belonging to a tax return or invoices and bank documents.
Why is there a storage obligation for certain private documents?
Retention periods also apply to some private documents. Just as with the obligation to retain business documents, the retention of private documents enables evidence to be provided even years later. This applies. among others, particularly to (tradesman’s) invoices, receipts, bank and tax documents. The retention period defines the period in which the documents must be kept.
However, only a few private documents are subject to the retention obligation, but there are recommendations for a retention period. For example, keeping bank statements and invoices is recommended.
Legal basis of the retention obligation
Paragraph 14b para. 1 sentence 5 no. 1 UstG (VAT law) regulates the retention obligation for private documents such as invoices and receipts for taxable services. By law, these must be kept for two years.
Which documents should be kept for how long?
The following private documents should or must be kept for at least 2 years:
- Invoices from tradesmen - legal regulation to prevent illegal employment
- Invoices, sales contracts, receipts and guarantee documents - as the legal guarantee obligation only expires after two years.
- Receipts of items with a high value and which are insured through household insurance – these serve as proof of value to the insurance company
How long must tax documents be stored for?
The retention period for tax documents of private individuals should be at least so long until the tax assessment has been received, because the tax office can request the documents at any time. The tax assessment should be kept, because this can also be used as evidence of income level.
High-income earners with incomes of more than €500,000 must store documents and records regarding this for 6 years according to the law.
How long must bank documents/bank statement be stored for?
The retention period for private bank documents is at least 3 years. Included herein is the retention period for bank statements. Storage of bank statements and bank documents should therefore be for at least three years, because for larger purchases they can serve as evidence. Bank documents not only serve as evidence of transacted payments for larger purchases, but also for regular payments, like rent, which is why a minimum of a three year retention period is recommended for bank documents and bank statements.
How long must invoices be stored for?
There is a retention period for private invoices for skilled trade bills. This retention period of a private invoice is applicable to everyone and amounts to 2 years. The retention period for private skilled trade invoices is in place to prove in case of doubt that everything has occurred correctly. It is however recommended to store other private invoices for 2 years because the legal warranty obligation only expires after two years. The same also applies to purchase agreements, till receipts and guarantee documents.
Lifetime retention period for the following documents
The following private documents should be kept for life:
- Registry office documents such as birth and marriage certificates
- Pension and social security records
- Certificates
- Health insurance documents
- Documents on real estate purchases and land register extracts
In principle, it is recommended to keep documents as long as a warranty or guarantee period exists.
Please note that the retention periods given apply to Germany. Depending on the country, the legal regulations may differ.
The following table provides you with an overview for the retention periods of some private documents.
Documents on property purchases and land register extracts: lifelong
Craftsmen invoices: 2 years
Warranty documents: 2 years
Birth certificate: lifelong
Payslips (as proof for pension claims): lifelong
Receipts: 2 years
Purchase contracts: 2 years
Bank statements: at least 3 years
Health insurance documents: lifelong
Rental agreement: at least 3 years after termination
Receipts: 2 years
Invoices: 2 years
Pension and social security documents: lifelong
Civil registry documents (e.g., marriage certificate): lifelong
Tax-relevant documents (e.g., payslips, receipts): 10 years
Death certificate: lifelong
Tax-relevant documents for high earners (income > €500,000): 6 years
Insurance contract: at least 3 years after expiration
Contracts (depending on importance): lifelong
Certificates: lifelong
When does the retention obligation begin?
The retention period for private documents only starts at the end of the calendar year in which the document was received. For example: If a tradesman’s invoice is dated 15.05.2019, the obligation to retain the document begins on 01.01.2020 and ends on 31.12.2021.
How to subsequently destroy private documents
Where the retention period for private documents has expired and is no longer required, they can be destroyed. It is necessary to ensure that these documents are destroyed in accordance with GDPR where the documents contain sensitive, personal data. Therefore, if the retention period for private documents has expired and the documents are no longer required, the use of a GDPR-conforming document shredder is recommended for the destruction of private documents.
Note: This is an editorial text by the editorial team. No advice is provided on the matters of retention requirements and retention periods. All data is non-binding.
