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 is the three-month period?

What does the three-month period mean?

If you temporarily live in another location for work (maintaining two households), you incur additional meal expenses there – for example, because you have to provide for yourself at lunchtime or in the evening.

You can claim these additional costs as a flat-rate meal allowance – but only for the first three months from the start of the second residence.

This is the so-called three-month period.

Example:

You move into a second home in Berlin on 01.03.2025 for a new job.
You can claim meal allowances from 01.03. to 31.05.2025:

• 28 Euro per day for each full day of absence
• 14 Euro on arrival or departure days

From 01.06.2025, the entitlement to these allowances ends – unless the period starts again for certain reasons.

When does the period start again?

The three-month period starts again if:

• You change your second home (e.g. by moving at the work location), or
• You interrupt your work away from home for at least 4 weeks – e.g. due to:
  • Holiday
  • Illness
  • Parental leave
  • Company-related breaks

Legal basis: § 9 para. 4a sentence 8 EStG, BFH ruling: of 28.02.2013, VI R 90/10

Important:

• The period applies per place of work or second home.
• With multiple interruptions, it can start again multiple times.
• The allowances apply for a maximum of three consecutive months, even for longer employment.

What is the three-month period?

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.

What can I deduct for second homes?

Which accommodation expenses can I deduct?

As part of the second household, you can deduct the costs for overnight stays in your second home. Only proven costs are recognised, not flat rates. A second home can be a rented flat, a hotel room, or your own house.

Rented flat:

If you use a rented flat, you can claim the rent, additional costs (e.g. heating, electricity), and expenses for necessary furnishings (e.g. table, bed, wardrobe). Items up to 800 Euro net can be deducted immediately; more expensive items must be depreciated over their useful life (e.g. 13 years for furniture).

Hotel:

If you use a hotel, you can deduct the actual proven accommodation costs. If meal costs are included in the accommodation price, the deductible amount is reduced by 20% for breakfast and 40% for lunch/dinner of the meal allowance.

Owner-occupied flat:

If you use an owner-occupied flat, you can deduct the additional costs, interest on loans, and depreciation up to the amount of the comparable rent for a reasonable flat.

Maximum amount of 1.000 Euro per month:

There is a cap of 1.000 Euro per month for accommodation costs. This amount includes rent including operating costs, costs for furnishings, second home tax, and renovation. The maximum amount is considered an average value for the year – amounts exceeding this can be offset against lower amounts in other months.

Judgements and deviations:

• BFH judgement of 04.04.2019 (VI R 18/17): The Federal Fiscal Court ruled that costs for furnishings and household items do not count as accommodation costs and can be deducted in addition to the maximum amount of 1.000 Euro. These expenses only concern the use of the furnishings, not the accommodation itself.
• Court order of the FG Saarland of 20.05.2020 (2 K 1251/17): Costs for a rented parking space or garage are also not considered accommodation costs. They can be deducted in addition, even if the rental costs for the flat exceed the maximum amount of 1.000 Euro.
• BFH judgement of 13.12.2023 (VI R 30/21): The Federal Fiscal Court ruled that the second home tax cannot be deducted in addition to the maximum amount of 1.000 Euro, as it is considered a cost of using the accommodation and thus falls under the deduction restriction.

Additional tips:

• Tip 1: If the second home is owned by the employee, the actual expenses such as depreciation, interest on loans, and operating costs can be deducted up to the maximum amount of 1.000 Euro. Furnishings can be deducted additionally (BMF letter of 24.10.2014).
• Tip 2: A furnished flat usually incurs a higher rent. If the rental contract does not include a breakdown of the rent for the flat and furniture, the rent can be apportioned using the estimation procedure under § 162 AO. The use of the furniture can then be deducted additionally (BFH judgement of 04.04.2019).
• Tip 3: If the acquisition costs for the furnishings and equipment of the second home do not exceed 5.000 Euro, these costs can be recognised as necessary on a flat-rate basis without further examination (BMF letter of 25.11.2020).

Which accommodation expenses can I deduct?

Which relocation expenses can I deduct?

In connection with the occupancy of the second home, you can deduct the actual costs incurred for tax purposes. This already begins with the house hunting: Expenses incurred in connection with house hunting, such as travel expenses for viewing properties, telephone or postage costs, are deductible as business expenses.

The tax office also recognises the costs for the move. You can deduct the costs of the removal company, expenses for a rental vehicle, helper wages or moving boxes. The estate agent's fee for obtaining the new rental property is also deductible, but not the estate agent's fee for purchasing a home at the place of employment. Please note that you must provide individual proof of your moving costs as part of the double household, as the moving expense allowance is not granted because you are not relocating your main residence. The deductibility of moving costs also applies to your return move to your main residence. If you need to carry out redecoration work when moving out of your second home, you can also include these in your tax return.

Which relocation expenses can I deduct?

When is a second household recognised?

A second household exists when an employee takes up a second residence at the place of work, in addition to their main household. Certain conditions must be met for tax recognition.

Conditions for Recognition

For the costs of a second household to be deductible as business expenses, the following conditions must be met:

• Own household at home: The taxpayer must have their own household at their main place of residence, which they finance themselves. This can also be accommodation provided free of charge (e.g. in the parental home or with a partner).
• Financial contribution to the main household: There must be an appropriate contribution to ongoing household costs – e.g. rent, operating costs, food, telecommunications, or household purchases.

BFH Ruling 2023: Eased Proof Requirements

The Federal Fiscal Court (BFH) ruled on 12.01.2023 (VI R 39/19):

• A financial contribution can be direct or indirect.
• Regular payments are not mandatory.
• Even one-off payments at the end of the year may suffice.
• Proof such as bank statements or receipts is sufficient for documentation.

Example: The claimant contributed over 3.100 Euro to household costs in the parental home (including food, utilities, windows). The tax office rejected the deduction, but the BFH recognised it.

BFH Ruling 2025: No Contribution Obligation for Single-Person Household

In its ruling of 29.04.2025 (VI R 12/23), the BFH decided:

If the taxpayer runs their own single-person household at home, they do not need to prove a financial contribution to household costs.

Exceptions:

• No recognition for mere use of a youth room at weekends.
• Does not apply to multi-generational households where, for example, children, parents, and grandparents live together.

Recommendation for Providing Evidence

To avoid later disputes with the tax office, it is advisable to:

• Make regular payments by standing order,
• cover more than 10% of the monthly household costs (according to administrative practice),
• keep documents such as bank statements and receipts,
• if rejected by the tax office, file an objection and refer to the BFH rulings.

Non-Deductible Expenses

The following expenses do not count as household or living expenses for tax purposes:

• Clothing
• Holidays
• Leisure activities
• Health care

Special Cases and Restrictions

• Single persons in the parental home: Financial contributions must be particularly carefully documented here.
• Younger taxpayers or trainees: Merely using a room at their parents' home at weekends is usually not sufficient for their own household (see FG Münster, ruling of 07.10.2020, 13 K 1756/18 E).

Conclusion

Tax recognition of a second household is possible if:

• there is an own household at home,
• a work-related second accommodation is used at the place of work,
• a financial contribution is made – or is unnecessary due to a single-person household,
• the expenses can be proven.

Tip: Fully and regularly document your household contributions. If the tax office rejects, file an objection and refer to the BFH rulings of 2023 and 2025.

When is a second household recognised?

How far may the second home be from the place of work?

A second household is established if you are employed away from your main residence and maintain a second home at the place of employment. It is permissible for the second home to be located outside the immediate place of work, as long as it is still within the commuter area of the primary workplace. This means it must be possible to commute daily to work.

Distance of the second home from the workplace

The question of how far the second home may be located has been clarified in various court rulings. The decisive factor is whether daily commuting is still reasonable:

• BFH ruling (2012): A distance of 141 km to the workplace was deemed permissible because the employee could cover the distance in one hour by ICE train. According to the Federal Fiscal Court (BFH), such a time expenditure is within the usual range (BFH ruling of 19.4.2012, VI R 59/11).
• BFH ruling (2014): A distance of 83 km, which could be covered in less than an hour, was also recognised. Here, the route was considered a usual commuting route and thus reasonable (BFH ruling of 26.6.2014, VI R 59/13).

Regulation from 2014

Since 2014, the following applies: The second home is still within the commuter area of the workplace if the distance to the workplace is less than half the distance between the main residence and the workplace. This regulation was established by the Federal Ministry of Finance (BMF letter of 25.11.2020).

Example: If the distance from the main residence to the primary workplace is 100 km, the second home may be a maximum of 50 km from the workplace.

Reasonable travel time

Travel time also plays a role. A travel time of up to one hour each way is generally considered reasonable. If the second home is further away, a second household can still be recognised if the travel time is significantly reduced.

Practice and special cases

In practice, many employees seek a compromise: they want to move closer to the workplace but not so far from home that trips home would be time-consuming. A common solution is to choose a second home located between home and the workplace.

Example A: Mr Steuerle lives in B and works in C. The distance from the main residence in B to the primary workplace in C is 100 km. His second home in Z is 30 km from the primary workplace. Since the second home is less than half the distance between the main residence and the workplace (50 km), the second household is recognised.

Example B: The distance from the main residence in B to the primary workplace is 56 km. The second home in Z is 30 km away, but the travel time to work from the second home is only 25 minutes. Since the travel time is significantly reduced, a second household can be recognised despite the distance being more than half the route.

Current case law

The Finance Court Münster ruled in 2024 that a second household is not recognised if the main residence and the primary workplace are only 30 km apart and the travel time to work is less than one hour. In this case, the commuting distance is considered reasonable (FG Münster, ruling of 6.2.2024, 1 K 1448/22 E).

Conclusion: The distance of the second home from the workplace should generally be less than half the distance between the main residence and the workplace, or the travel time must be significantly reduced. A daily commuting time of up to one hour is considered reasonable. It is advisable to check the regulations carefully or seek tax advice to claim possible deductions.

How far may the second home be from the place of work?

What can be deducted when moving away from your place of work?

It is not uncommon for employees to move away from their place of work. Some build or buy a home in the countryside, others move to a more attractive area with better leisure opportunities. Others move out of the marital home and in with a new partner. Single people move to live with their partner in another location. In these cases, you may claim business expenses for additional meal allowances.

If you then keep your previous accommodation as a second home at your place of work or rent a smaller flat, you could not previously claim any tax deductions for double housekeeping. This was because the move was for private reasons, and the double housekeeping was therefore privately motivated.

• In 2009, the Federal Fiscal Court fortunately changed its previous case law in favour of employees: Double housekeeping is now considered work-related even if the main residence is moved away from the place of work for private reasons and a flat at the place of work is used as a second home. It does not matter whether the previous flat is kept as a second home or a new flat is rented (BFH rulings of 5.3.2009, BStBl. 2009 II p. 1012 and 1016).

• The tax authorities accept the BFH's generous new view – but with one restriction: After moving the main residence and taking up a second home, meal allowances are not recognised for the first three months if you had already lived at or near the place of work for at least three months beforehand (BMF letter of 10.12.2009, BStBl. 2009 I p. 1599).

Current ruling: The Federal Fiscal Court has decided against the tax authorities and in favour of employees that meal allowances may also be deducted for tax purposes for the first three months in cases of relocation. This is because double housekeeping is established when the previous flat is converted into a second home. Therefore, the three-month period begins when the previous flat is converted into a second home (BFH ruling of 8.10.2014, VI R 7/13).

The case: The employee lived and worked in Düsseldorf. After meeting his current wife, he moved to a small town on the Lower Rhine and relocated his main residence there. He kept the flat in Düsseldorf as a second home. In his tax return, he claimed meal allowances for the first three months after his move. The tax office refused to recognise them, but the tax court and the BFH granted them.

If you move your residence away from your place of work to another location and designate your previous flat as a second home, you can now claim meal allowances, even though your meal situation at the place of work has not actually changed. According to the BFH, it is irrelevant for the tax consideration of meal allowances whether there was actually an increased need for additional meals and whether the employee is familiar with the meal situation at the place of work.

What can be deducted when moving away from your place of work?

When can single people claim dual household expenses?

Single individuals can also deduct the costs of maintaining a second household as work-related expenses, provided they maintain their own household outside the place of employment. This household must:

• be the centre of life interests,
• be used from own or derived rights,
• be managed independently or jointly,
• and generally involve a financial contribution to household costs.

New legal ruling: No proof of cost sharing for single-person households

According to a recent ruling by the Federal Fiscal Court (BFH dated 29.04.2025, VI R 12/23), no financial contribution needs to be proven for a single-person household. The reasoning: If a person alone bears the costs for their household, proof of cost sharing is unnecessary – regardless of whether the funds come from income, BAföG, loans, or gifts.

The case before the BFH

A single student with their own living area (including kitchen and bathroom) in their parents' home maintained a second flat at their place of study. Although he contributed only minimally to the household budget, the BFH recognised his main residence as his own household – as he lived there permanently and managed independently.

Requirements for maintaining a second household

• Your own flat at the place of employment,
• your own household at the centre of life (e.g. in your parents' home),
• actual stay in the household outside the place of employment,
• professionally motivated second household.

Merely "keeping" a room for occasional visits is not sufficient.

Restrictions and exceptions

1. Younger children in the parental home

Working children who continue to live in just a room in their parents' household after training or studies are often not considered to be the owners of their own household – even if they contribute financially. The household is usually still managed by the parents (see FG Münster, judgement of 07.10.2020, 13 K 1756/18 E).

2. Multi-generational households

In multi-person households, a noticeable financial contribution to living costs is required. How high this must be is not rigidly regulated according to the BFH (judgement of 12.01.2023, VI R 39/19). However, it is sensible to orientate towards the ten per cent limit of household costs.

Tax tip

The tax authorities have so far required a cost contribution of more than 10% of household costs. The BFH has relaxed this rigid limit but emphasises the importance of an appropriate contribution in multi-person households. An ongoing or fixed contribution is not mandatory but helpful for providing evidence.

When can single people claim dual household expenses?

What is deductible if I live with my partner in the second home?

It is not uncommon for spouses to work at the same secondary place of employment and live together in a second home during the week. They maintain their home at the main residence and return there regularly. Tax offices often assume that the centre of life is at the place of employment and refuse to recognise dual housekeeping.

However, the decisive factor is whether the main residence is still considered the centre of life or whether the second home has become the centre of life as a result of living together. Living together in the second home does not affect the recognition of dual housekeeping as long as the second home does not become the new centre of life.

The Federal Fiscal Court has recently ruled that for both spouses who are employed and live with their children in family accommodation at the place of employment, the centre of life interests is determined as part of an overall assessment of the individual circumstances based on certain criteria. Although there is a presumption that the centre of life interests is usually at the place of employment, the taxpayer can rebut this presumption (BFH ruling of 1.10.2019, VIII R 29/16).

For childless spouses who jointly maintain family accommodation at the place of employment, it is "usually" assumed that the centre of life is at the place of employment (standard presumption). This applies even more so if the spouses live with their children in family accommodation at the place of employment, even if the former family home is retained and still used occasionally. However, in this case, the "overall assessment of all individual circumstances" must also be taken into account.

In the "overall assessment of all individual circumstances", it is important to consider how often and for how long the taxpayer stays in each home, how both homes are equipped and their size. The duration of the stay at the place of employment, the distance between the two homes, and the number of trips home are also important. Significant weight is also given to the location to which closer personal ties, such as the nature and intensity of social contacts, club memberships, and other activities, exist.

It cannot simply be assumed that spouses who both live with their school-age children in family accommodation at the place of employment "necessarily" have their centre of life at the place of employment. Rather, an overall assessment of the individual circumstances is always required. Although there is a standard presumption for the overall assessment that the centre of life is at the place of employment, the taxpayer can present individual circumstances that indicate a centre of life for both working spouses at the home location.

If both spouses/partners are employed at the secondary place of employment and live together in the second home, each has a dual household for tax purposes. Each can deduct half of the accommodation costs - and since 2014, each up to a maximum of 1.000 Euro per month. Each can also claim the full meal allowances for the first three months.

What is deductible if I live with my partner in the second home?

Is the relocation allowance also deductible for a second household?

As part of maintaining a second household, various costs can be deducted as business expenses. Deductible costs include the move to the second home at the place of employment and the termination of the second home after the end of the external work.

You can claim the following as moving expenses: transport costs (removal company, rental van, helper wages, moving boxes), travel expenses on the moving day and for viewing properties, estate agent fees. The question is whether the "lump sum for other moving expenses" is also deductible.

Currently, the Thuringia Finance Court has ruled that, as part of maintaining a second household, the costs for moving to the second home at the place of employment are only deductible with proof and the moving expense allowance is not considered. According to income tax guidelines, the moving expense allowance is explicitly excluded for maintaining a second household (R 9.11 para. 9 sentence 2 LStR). In the case of a "small" move to the place of employment, the main residence is not relocated (FG Thuringia of 29.6.2015, 2 K 698/14).

Moving expenses as part of maintaining a second household include not only the move to the second home but also the return move from the second home to the main home. The moving expense allowance is also not deductible for the return move, as the main residence is not relocated.

The situation is different if you end the second household by relocating the family household and main residence to your external place of employment with a "large" move. In this case, the moving expenses are not deductible as costs of maintaining a second household but as general business expenses (according to § 9 para. 1 sentence 1 EStG). And in this case, you can also claim the moving expense allowance.

Is the relocation allowance also deductible for a second household?

Can the costs for furnishing the flat be deducted additionally?

In the context of an occupationally related second household, accommodation costs or second home costs can also be deducted as business expenses or reimbursed tax-free by the employer. Only proven costs are recognised, not flat rates. But what about newly purchased furnishings?

The Federal Fiscal Court has recently ruled against the tax authorities, stating that the costs for the necessary furnishing of the second home in the context of an occupationally related second household are not part of the accommodation costs, the deduction of which is limited to 1.000 Euro per month. Rather, expenses for furnishings and household items - insofar as they are necessary - are fully deductible as other necessary additional expenses due to a second household in accordance with § 9 para. 1 sentence 3 no. 5 EStG (BFH ruling of 4.4.2019, VI R 18/17).

• According to the BFH, expenses for furnishings and household items are not covered by the maximum amount, as these are incurred only for their use and not for the use of the accommodation. The use of furnishings is not the same as the use of the accommodation itself. The legislative aim of the new regulation is to limit only the costs for the accommodation to 1.000 Euro per month, not other necessary expenses.
• The maximum deductible amount of 1.000 Euro per month includes, according to the legislative reasoning, "all expenses incurred for the accommodation or apartment, e.g. rent including operating costs, rental or lease fees for parking spaces, also in underground garages, expenses for special use (such as garden etc.) borne by the employee". The amount of 1.000 Euro is based "on an average apartment of approx. 60 sqm, as previously always used by case law, depending on location and equipment".

(1) If the second home is owned by the employee, the actual expenses, e.g. depreciation, interest on loans, operating costs, repair costs, are deductible as business expenses up to the maximum amount of 1.000 Euro per month. Here too, the costs for necessary furnishings and household items are deductible in addition to the maximum amount (BMF letter of 24.10.2014, BStBl. 2014 I p. 1412, para. 103).

(2) When using a furnished or partly furnished apartment, a higher rent is generally payable. If the rental contract does not specify a breakdown of the rent for the use of the apartment and the use of the furniture - as is usually the case - the rent paid can be apportioned on an estimated basis according to § 162 AO. The use of the apartment is then deductible up to 1.000 Euro per month and the use of the furniture is deductible beyond that (BFH ruling of 4.4.2019, VI R 18/17).

(3) If the purchase costs for an individual item do not exceed 800 Euro (excluding VAT), they are immediately and fully deductible. This applies to purchases from 1.1.2018. Previously, the limit was 410 Euro. Higher costs must be spread over the expected useful life and are only deductible with the annual amount as "depreciation for wear and tear". The useful life for furniture is 13 years.

Currently, the tax authorities have announced a welcome simplification: If the purchase costs for the furnishings and equipment of the second home - excluding work equipment - do not exceed a total of 5.000 Euro including VAT, it is assumed for simplification purposes that these costs are considered "necessary" or not excessive and are recognised as business expenses without further examination (BMF letter of 25.11.2020, BStBl 2020 I p. 1228, para. 108).

Can the costs for furnishing the flat be deducted additionally?