What conditions must I meet to deduct the costs of a second household?
Wenn your place of work is far from your home and you therefore need to take a second home, this constitutes a dual household. Certain costs incurred as a result can be deducted from your taxes.
However, certain conditions must be met: Firstly, you must have a main home with your own household at your place of residence. You must also take a second home at your place of work for professional reasons. A new condition for "own household" since 2014 is the financial contribution to living expenses.
Professional reasons exist, for example, if you have been transferred to an external place of work or if you take up a job that is far away from your own home. The dual household is also considered to be for professional reasons if you move your main residence away from your workplace for private reasons and use a flat at your place of work as a second household.
Any accommodation where you have the possibility to stay overnight is recognised as a second home. How often you use this possibility is irrelevant. Accommodations can include:
- a rented flat,
- your own house,
- a hotel room,
- overnight stays with friends, or
- a barrack on a construction site.
If you drive home several times a week, you can choose whether to deduct costs due to dual household or travel costs for all home trips. In the second case, travel costs can be deducted using the distance allowance. However, you cannot then deduct overnight costs and meal allowances as business expenses in the first three months. The second option is advisable if you frequently travel home and have low overnight costs at your second home.
What conditions must I meet to deduct the costs of a second household?
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, a hotel room, or a 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 van), 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 entire 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 4.4.2019 (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, service charges) 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, 20.5.2020, 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).
Costs 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-square-metre flat.
What can I deduct for second homes?
When do I have my own household?
When do I have my own household?
To have a second household recognised for tax purposes, certain conditions must be met:
1. Own household at home:
You must own or rent a property at your home location that you use for your personal needs. Your main place of residence must be there.
2. Financial contribution for single persons:
Single persons must financially contribute to the main household. This means you must cover more than ten per cent of the monthly running costs of the household (§ 9 Abs. 1 Nr. 5 EStG). The tax authorities scrutinise this strictly.
3. Married persons:
Married individuals often find it easier, as the family usually remains at home and financial contributions are rarely questioned. A separate, self-contained flat is often sufficient to justify the second household.
Financial contribution:
In 2019, the Lower Saxony Finance Court ruled that financial contributions to household costs can be made in various ways. This can be through direct payments, the purchase of household items, or costs for repairs and renovations. One-off payments are also possible. The Federal Finance Court confirmed this ruling and rejected the strict requirements of the tax authorities.
Case study:
An employee rented a flat at the work location but also lived in a room in his parents' house. In 2015, he contributed 3,160.47 Euro to household costs (food, utilities, window replacement). The tax office rejected this as proof of financial contribution. However, the court ruled in favour of the employee.
Reasoning:
- The financial contribution must relate to costs such as rent, operating costs, household items, and renovations. Other expenses such as holidays or leisure activities do not count.
- There is no fixed minimum limit, and contributions do not have to be made monthly. One-off payments are also permitted.
- To prove financial contribution, the actual costs of the household must be disclosed.
Tips:
- If the tax office rejects the second household due to a lack of cost contribution, you can appeal and refer to the Federal Finance Court ruling.
- To avoid conflicts, you should regularly cover more than ten per cent of the monthly household costs.
- The Federal Finance Court ruling does not apply to children who only go home at weekends and use their childhood bedroom.
When do I have my own household?
