Sometimes, no matter how hard you work, your income may not match what you’d like it to be. With rising living costs, career changes, and everyday expenses, it’s easy to lose track of where your money goes. But if your job means living away from your main home, even for a short while, there may be a way to lighten the load – thanks to a lesser-known German tax rule that could put some money back in your pocket.
It’s called doppelte Haushaltsführung (double household deduction), and it allows you to claim tax benefits for a second home to cover some of your extra living costs. With a bit of planning, you could reduce your taxable income by thousands of euros – enough to cover a few months’ rent or ease the pressure on your budget.
What Is a Double Household?
A double household means you keep your main home but also rent a second residence near your workplace for professional reasons. This is common if you’re sent on a project in another city or are still settling into a new role. Instead of covering the costs of two homes, travel, and setup alone, you could deduct them in your German income tax return.
HAVENS LIVING advantage: Unlike many co-living options, HAVENS LIVING offers short-term accommodation with official address registration (Anmeldung) – a key requirement for claiming these benefits.
Who Can Qualify for These Benefits?
These conditions usually apply:
- Your main home remains your primary residence, and you pay for it yourself.
- The second home is near your workplace and mainly used for professional purposes.
- You return home regularly – typically once a week if married or twice a month if single.
If this sounds like your situation, it could be worth looking into §9 Abs. 1 Nr. 5 EStG.
What Expenses Can Be Deducted?
You can claim up to €1,000 per month for rent and utilities like electricity, water, heating, and the broadcasting fee. Basic furnishings – such as a bed or desk – may also be covered if they’re reasonable and necessary for work (sadly, an 85-inch smart TV won’t make the list).
Travel costs may also qualify, whether you take public transport or claim the German mileage allowance (€0.30/km for the first 20 km, €0.38 after). For the first three months, you can claim a meal allowance of €28 per full day and €14 per travel day. And if you hire a van or a moving company, moving costs could be included too.
Example of Potential Savings
Let’s say you live in Cologne but work in Berlin for nine months:
- Rent: €1,000 × 9 = €9,000
- Travel (mileage allowance): ~€376.80 per week × 4 × 9 = €13,564.80
- Meals (first 3 months): €168 per week × 4 × 3 = €2,016
That’s a total deduction of €24,580.80, plus moving and furnishing costs. Depending on your income, your tax rate, and the length of your assignment, this could mean a tax refund of several thousand euros. Due to Germany’s progressive tax system, the greater your income, the greater the benefit.
How to Claim Your Second Home Tax Benefit
You’ll need the Anlage N (income tax form), your rental contract, utility bills, travel receipts, and proof of both addresses. If you’re renting with HAVENS LIVING, you’re already covered for one of the main requirements: an official Anmeldung.
If you’re unsure where to begin, tools like taxfix can guide you step-by-step, even if your German isn’t fluent. (We’re also exploring a HAVENS LIVING tenant discount, so stay tuned!) Consider speaking with a certified tax advisor if your situation is more complex, such as filing jointly with a spouse, claiming child benefits, or having multiple income sources.
Pitfalls to Avoid
Avoid these common mistakes: being unable to prove your regular trips home; failing to show a clear link between your second home and work; claiming luxury or non-essential items; and paying over €1,000 a month in rent without strong justification.
Although owning a second home may seem like a big extra cost, with the right documentation, it can become a genuine tax-saving opportunity. Even smaller claims can be worth it, adding up to a noticeable tax refund in Germany – and who knows? You might get to enjoy a cozy getaway.
Disclaimer: This article is intended for informational purposes only and does not constitute legal or tax advice. For a personal assessment, please consult a certified tax advisor.
