(2025) What can I deduct for second homes?

What can I deduct for second homes?

The tax office does not impose strict requirements for a second home at the place of work. It can be a flat, hotel room, or furnished room. The important thing is that the accommodation is available and does not become your new main residence. If this is the case, various business expenses can be claimed for tax purposes as part of the double household management.

Deductible business expenses:

• House hunting: Travel expenses for viewings, telephone or postage costs.
• Relocation: Transport costs (removal company, rental vehicle), travel expenses on the day of the move.
• Meal allowance: In the first three months, flat rates for meals can be claimed:
  • 24 hours absence: 28 Euro
  • 8 to 24 hours absence: 14 Euro
• Travel expenses: The first outward journey and last return journey are fully recognised, e.g. by ticket or with the kilometre allowance (30 cents per kilometre). Weekly journeys home can be deducted with the distance allowance (30 cents per kilometre, from the 21st kilometre 38 cents).
• Accommodation costs: Proven costs up to a maximum of 1.000 Euro per month are recognised. These include:
  • Rent including service charges
  • Costs for necessary furnishings
  • Second home tax
  • Renovation costs

Maximum amount of 1.000 Euro:

The maximum amount is considered an average value for the whole year. Amounts that are less than 1.000 Euro in individual months can be offset against higher expenses in other months.

Expenditure on furnishings:

According to the BFH ruling of 04.04.2019 (VI R 18/17), the costs for furnishings and household items are not part of the accommodation costs and are therefore additionally deductible.

Tip: If the second home is owned by the employee, the actual expenses (e.g. depreciation, interest on loans, operating costs) up to 1.000 Euro per month are deductible. Costs for furnishings can be deducted in addition.

Special features:

• For furnished flats where the rent is not divided between the flat and furniture, the rent can be divided using an estimation procedure (§ 162 AO). The costs for furniture use are additionally deductible.
• Parking space costs: A rented parking space or garage is not considered part of the accommodation costs and can be deducted additionally (FG Saarland, 20.05.2020, 2 K 1251/17).

Simplification rule:

Purchase costs for furnishings and equipment up to 5.000 Euro are recognised as necessary and can be deducted as business expenses without further examination (BMF letter of 25.11.2020).

Second home tax:

The second home tax is subject to the deduction limit of 1.000 Euro per month, as decided by the Federal Fiscal Court (BFH ruling of 13.12.2023, VI R 30/21).

No 1.000 Euro limit abroad

For double household management abroad, the 1.000 Euro limit does not apply. Instead, the actual rental costs are deductible as business expenses, provided they are "necessary and reasonable". The upper limit is the local average rent for a 60 m² flat - at least according to the tax authorities.

BFH overturns 60 m² limit for foreign flats

The Federal Fiscal Court (BFH) ruled on 09.08.2023 (VI R 20/21) that for double household management abroad, there is no flat rate limit on the rent for a 60 m² flat. Instead, it must be checked on a case-by-case basis whether the accommodation costs are necessary.

Nevertheless, the tax authorities continue to adhere to the 60 m² limit in the instructions for Annex N (2024).

In its ruling of 17.06.2025 (VI R 21/23), the BFH confirmed: Actual costs for a service flat abroad recognised as necessary by the employer are fully deductible.