In Germany, second homes are subject to specific tax rules that both tenants and owners must observe. Here is an overview of the most important points:
1. Definition of a second home:
A second home is, for example, a flat that you rent through HomeCompany in addition to your main residence. Typical cases include:
– Homes used for work purposes (e.g. because of a project assignment in another city)
– A furnished flat that you rent during a probationary period with a new employer, in addition to your main home
– Second homes for students
2. Tax obligations for owners
Income tax**
If you let a flat, you must declare the rental income in your income-tax return. You can deduct the following costs:
– Interest on loans
– Depreciation (AfA)
– Operating costs (e.g. caretaker, insurance, property charges, heating costs)
– Repairs and maintenance
3. Tax considerations for tenants
Income-related expenses
If you use the second home for work purposes, you can deduct the rental costs.
These include:
– Rent
– Service charges (electricity, heating, internet)
– Travel costs between the main and second homes
Household-related services
Tenants can also deduct a certain amount for household-related services (e.g. a cleaner) from their tax liabilityThis news item provides preliminary information and is not legally binding – always consult and instruct your tax adviser.
Second-home tax**
Some cities and municipalities levy a second-home tax. The best source of information is the city’s website or the competent authority. Exceptions often apply to commuters and students.