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.
