(2025) Rental: Travel to rental property usually fully deductible

Landlords must visit their rental properties regularly – for example, for inspections, repairs, or viewings. For these journeys, similar tax regulations apply as for employees' journeys to work, according to § 9 para. 3 EStG.

Landlords are generally allowed to deduct the business travel allowance of 0,30 Euro per kilometre driven as business expenses. The Federal Fiscal Court (BFH) has confirmed that this allowance is generally applicable.

Exception: Primary place of work at the rental property

Different rules apply if the rental property becomes the landlord's primary place of work. In this case, only the commuting allowance of 0.30 Euro per kilometre (or 0.38 Euro from the 21st kilometre) is applicable.

When is there a primary place of work?

• If the landlord visits the property not just occasionally, but regularly and consistently – almost daily.
• According to the Cologne Tax Court, a primary place of work exists if at least one third of the total activity is carried out at the respective property.

Journeys for self-build projects

If a landlord constructs a building partially through self-build, journeys to the construction site cannot be claimed with the commuting allowance, but only with the business travel allowance of 30 cents per kilometre driven or with the actual costs (BFH ruling of 10.05.1995, IX R 73/91). In this case, the travel costs are part of the construction costs of the building.

Special case: Holiday homes

Journeys to the holiday home: Commuting allowance instead of travel expenses?

Those who rent out a holiday home often travel there several times a year – for example, for renovation work. The question is: Are these journeys deductible with the business travel allowance (30 cents per kilometre driven) or only with the commuting allowance (30/38 cents per kilometre)?

This question is relevant if the holiday home becomes the primary place of work. In this case, only the commuting allowance may be applied.

Ruling of the Münster Tax Court: Commuting allowance and reduction due to private share

In a recent case (Münster Tax Court, ruling of 15.05.2025, 12 K 1916/21 F), the court decided:

• A partnership of father and son rented out several holiday homes with the support of a manager.
• For two properties, the partnership claimed travel expenses for 77 days as well as additional meal expenses according to travel expense principles.
• The tax office did not fully recognise the expenses and reduced them due to suspected private involvement.

The court largely confirmed this reduction:

• Additional meal expenses are not deductible.
• Travel expenses are only deductible with the commuting allowance – and only partially, as private purposes were also involved.

Reasoning of the court

• The holiday homes are considered primary places of work as they were visited in more than one third of the activities.
• According to § 9 para. 3 EStG, the primary place of work in connection with renting must be assessed on an object basis.
• Private involvement (e.g. holiday elements) must not be disregarded – in the case of mixed use, an estimate is permissible.
• However, excessive proof requirements must not be imposed on the taxpayer, especially for self-build projects.

Note: Meal expenses can only be claimed for the first three months – this period had already expired in the year in dispute.

Important: Although the appeal to the Federal Fiscal Court was allowed, it was not lodged. The ruling of the Münster Tax Court is therefore legally binding and is likely to be pioneering for many similar cases.