Overview

Smartwatches offer instant notifications, calendar reminders, and more—right on your wrist. However, convenience alone doesn’t necessarily satisfy the German tax authority (Finanzamt). Generally, they consider an Apple Watch or other smartwatch a personal gadget rather than a necessary business tool.

General rule

• Personal gadget: Most freelancers and self-employed won’t get a blanket deduction for a smartwatch. Simply checking messages or tracking steps usually isn’t enough to establish a primary business use.

• Burden of proof: The Finanzamt expects clear documentation proving that a device is essential for your business. Without it, the cost of your smartwatch is likely to be classified as personal expense.

Exceptions for Apple Watch, Garmin, and fitness trackers

• Fitness trainers & coaches: If you’re a freelance fitness professional or coach who relies on a smartwatch to track workouts, monitor client performance, and provide real-time feedback, you have a stronger argument for business use.

• Professional usage: Demonstrating that the watch is integral to delivering your services—like collecting health stats or monitoring client progress in live sessions—can bolster your case with the Finanzamt.

🛍 Still, even for fitness trainers, deducting Hermes straps won’t work. 

Practical tips

1. Document your usage: Keep a log or record of how you use the smartwatch in your day-to-day professional activities.

2. Collect proof: Save any relevant data or screenshots of client sessions where the watch plays an important role.

Conclusion

A smartwatch will not qualify as a deductible expense for most businesses. However, if you work in fitness or a related field where the device is integral to your service, you may have a valid case. 

Looking for more insights on business deductions? Explore our blog to learn about other deductions and tax savings.