Definition and Basics of Double Housekeeping
Die Double Housekeeping is a tax law term in German income tax law. It refers to the situation in which a taxpayer, for work-related reasons, maintains a second household at the place of employment in addition to their main residence. The resulting additional expenses can, under certain conditions, be claimed as income-related expenses for income tax purposes (§ 9 (1) No. 5 EStG).
The regulations on double housekeeping serve to compensate for work-related additional burdens and are intended to ensure that maintaining a personal household at the main residence in addition to another apartment at the workplace can be recognized for tax purposes.
Legal Requirements for Double Housekeeping
1. Necessity of Two Households
A prerequisite for double housekeeping is the simultaneous maintenance of two households: a main residence (center of vital interests) and a second residence at the place of employment. Double housekeeping exists only if the taxpayer uses a second accommodation for professional reasons, as daily commuting between home and workplace is economically or timewise unreasonable.
a) Main Residence
The main residence is regularly the center of personal life interests. Indicators for this are family ties (e.g., partner, children) as well as social contacts. The main residence may be owned, rented, or be a family home.
b) Second Residence at the Place of Employment
The additional residence at the place of employment must be available to the taxpayer and suitable as accommodation. Hotel-like accommodations, furnished rooms, or a shared apartment can also fall under this definition.
2. Work-Related Reason
Double housekeeping must be exclusively work-related. This is generally the case when the workplace is so far from the main residence that daily commuting would be unreasonable. It is not sufficient if family or private reasons are paramount.
3. Own Household at the Center of Life
The taxpayer must actually maintain their own household at the main residence. This requires independent financial resources and a personal lifestyle at the center of life. Participation in the ongoing costs of housekeeping must be demonstrated, especially when living in the parental home.
Tax Consideration of Expenses
The tax deductibility of expenses in the context of double housekeeping is clearly regulated in the Income Tax Act.
a) Who Can Deduct Expenses?
In principle, all employees, but also self-employed persons and civil servants who meet the requirements, may claim the costs as income-related expenses or business expenses.
b) Deductible Expenses
The following expenses are generally tax-deductible:
(1) Expenses for the Second Residence (§ 9 (1) No. 5 Sentence 4 EStG)
Accommodation costs at the place of employment are deductible as income-related expenses up to a monthly maximum of 1,000 euros. This includes rent, operating costs, and necessary ancillary costs (e.g., electricity, heating). Costs for furnishings as well as second residence taxes can also be claimed. Expenditures for household goods or furnishings may be included within the maximum limit.
(2) Travel Expenses
Weekly commutes from the place of employment to the main residence can be deducted at the current distance allowance of 0.30 euros per kilometer for one trip per week. Appropriate proof (e.g., tickets, fuel receipts) is required.
(3) Additional Meal Expenses
For the first three months of double housekeeping, additional meal expenses can be claimed according to the statutory flat rates (§ 9 (4a) EStG). After this period, this option is no longer available.
(4) Relocation Costs
If relocation costs are incurred in connection with double housekeeping, these can, insofar as they are work-related, be claimed as income-related expenses.
c) Proof and Claiming
All claimed costs must be documented by suitable evidence (e.g., rental contract, proof of payment). The tax recognition depends crucially on proper documentation.
Special Problem Areas and Case Law
1. Double Household in Parental Home
A taxpayer can also maintain their own household in the parental home. However, according to the opinion of the tax authorities and the case law (BFH), clear criteria must be met, in particular financial participation in ongoing household costs.
2. Unmarried Couples and Shared Apartments
Double housekeeping is possible for unmarried couples or members of a shared apartment, but maintaining one’s own household is scrutinized more rigorously. Mere cohabitation is not sufficient.
3. Assignments Abroad
Special regulations apply during assignments abroad or other work-related postings regarding recognized costs and the period for additional meal allowances.
Exclusion Reasons and Special Features
1. Possibility of Daily Return
If the place of employment is close to the main residence and daily return is reasonable, recognition of double housekeeping does not apply.
2. Main Residence at Place of Employment
If the center of life is already at the place of employment, setting up double housekeeping is excluded.
3. Private Reasons
If the second household is not primarily work-related but privately motivated, double housekeeping will not be recognized.
Double Taxation Agreements and International Aspects
In an international context, such as cross-border employment, double housekeeping expenses must be reviewed with consideration of double taxation agreements and special rules for cross-border commuters.
Legal Foundations
The legal foundations can be found primarily in:
- Income Tax Act (EStG), especially § 9 (1) No. 5 EStG
- Wage Tax Guidelines (LStR)
- Administrative instructions and letters from the Federal Ministry of Finance (BMF)
- relevant case law of the Federal Fiscal Court (BFH)
Summary
Double housekeeping represents an essential instrument for tax relief for professionals who must maintain two households for work-related reasons. Recognition by the tax authorities is subject to the fulfillment of comprehensive legal and actual requirements. Tax consideration covers accommodation costs, travel costs, additional meal expenses, and work-related relocation costs. Detailed documentation and a clear work-related reason are indispensable for a successful claim in the context of income tax.
Frequently Asked Questions
What requirements must be met for the tax recognition of double housekeeping?
For the tax recognition of double housekeeping, several legally clearly defined requirements must be met. Firstly, it is necessary that the taxpayer maintains a second household outside the location of their first place of work. The first place of work must be visited regularly and permanently, which is regulated in the Income Tax Act (§ 9 EStG). Furthermore, the establishment of the second household must be work-related, especially due to the distance between the main residence (usual center of life) and the workplace. Financial participation in the costs of the main household is mandatory, typically for singles or married couples with a joint household. In addition, the private center of life must continue to exist at the main residence, which in case of dispute must be proven by indicators such as family residence, social ties, or ownership. If these requirements are not met, double housekeeping is not recognized for tax purposes.
How is the center of life determined for double housekeeping from a legal perspective?
The determination of the center of life is carried out by the tax authority based on an overall assessment of all circumstances. Key is where the taxpayer mainly maintains private relationships, such as with a spouse, children, or registered life partner. Indications for the center of life include details in the registration register, actual periods of presence, club memberships, circle of friends, and family environment. It is important that, especially for married couples or de facto living arrangements, the joint main residence is usually considered the center of life. For singles, social ties must be proven and the substance and content of the household at the main residence must be demonstrated. The legislator and BFH (Federal Fiscal Court) require complete and plausible disclosure.
What costs can be claimed for tax purposes in the context of double housekeeping?
Within the scope of double housekeeping, according to § 9 (1) No. 5 EStG, various types of costs can be claimed as income-related expenses for tax purposes. These include, in particular, the actual expenditures for the second accommodation at the place of employment (rent, operating costs, ancillary costs). In addition, the costs of weekly family home trips are deductible, usually one trip per week at the distance allowance rate (§ 9 (1) No. 5 Sentence 5 EStG). Costs for relocations related to double housekeeping can also be taken into account, provided they are work-related. Additional meal expenses are recognized in the form of a lump sum for the first three months after moving into the second accommodation. Deductibility must be substantiated by receipts and evidence; private expenses are excluded.
How long can additional meal expenses be claimed in the context of double housekeeping?
According to § 9 (4a) EStG, additional meal expenses in the case of double housekeeping can be claimed for a maximum of the first three months after moving into the second residence. The amount is determined by statutory meal allowances (see § 9 (4a) Sentence 3 EStG). After this period, no further tax consideration for additional meal expenses is provided by law. The three-month period starts again if double housekeeping is interrupted for at least four weeks (e.g., due to work transfer or longer stays abroad).
Is there a limit on deductible accommodation costs for double housekeeping?
Yes, there is a cap on the accommodation costs that can be claimed as income-related expenses for double housekeeping. According to current legal provisions, only the actual, proven costs of the second residence at the place of the first workplace are deductible up to a maximum of 1,000 euros per month (§ 9 (1) No. 5 Sentence 4 EStG). This includes rent payments, operating costs, and ancillary costs. Costs for use-dependent furnishings and household items are included, but ongoing costs for telephone or internet are not, unless used exclusively for professional purposes.
What documentation requirements apply for double housekeeping vis-à-vis the tax office?
To claim double housekeeping for tax purposes, there is an extensive requirement for documentation. The taxpayer must be able to prove all prerequisites and the amount of the claimed costs. This includes rental agreements, invoices, bank statements for rent payments, proof of contributions to household costs (e.g., bank transfers), travel expense statements, logbooks or tickets for home trips, and, where applicable, registration certificates or information concerning household management and life situation. The tax office may also request additional evidence, particularly where there is ambiguity about the center of life or the amount of expenses claimed. If the evidence is incomplete, no recognition of the claimed tax deductions will be granted.
How does an interruption of double housekeeping affect tax deductions?
A temporary interruption of double housekeeping, for example, due to extended vacation, illness or home office, can affect the tax recognition and deductibility of individual cost items. If the second residence continues to exist during the interruption, double housekeeping can generally still be recognized as long as there is a factual and temporal connection with the professional activity. However, return trips or additional meal expenses for this period may not be deductible. In the event of a complete termination or an interruption longer than four weeks (e.g., change of workplace), the three-month period for additional meal expenses starts anew upon resumption. The tax office will assess on a case-by-case basis whether and to what extent a work-related double household continues to exist based on the evidence presented.
