(2025)
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.
