Expats in Germany may deduct rent, flights, travel costs and other expenses through “Doppelte Haushaltsführung”. Learn the requirements and common mistakes.
Many expats working in Germany maintain their primary household abroad and live in Germany primarily for work purposes. Often, this can qualify as a “Doppelte Haushaltsführung” (double household expenses) and lead to significant tax deductions for work-related expenses in Germany in a German tax return. Many expats simply do not know about this tax saving opportunity and completely miss or incorrectly interpret German tax rules.
In this article, we explain what the key requirements are and what expenses can be deducted.
Typical Expat Situations with Two Households
A double household may potentially apply if:
- your spouse and children remain abroad
- you are on a temporary assignment in Germany
- you keep a permanent residence outside Germany
- you work in Germany during the week only
- your employer relocated you temporarily
However, some cases that initially “sound eligible” ultimately do not qualify under German tax law. The legal basis is provided in § 9 Abs. 1 Satz 3 Nr. 5 EStG in combination with the interpretation of the German Ministry of Finance (BMF-Schreiben vom 25.11.2020, BStBl I 2020, 1228). Find more information about primary and secondary tax residence here.
What are the Key Requirements for Claiming Double Household Expenses?
German tax rules require that expats can prove the following in relation to their double household expenses:
- Hauptwohnung (Center of Life): Maintained own household and center of vital interests in addition to their second home (can be domestic or abroad).
- Finanzielle Beteiligung (Financial Contribution): Documented financial contribution of >10% of regular running costs of the primary household.
- Berufliche Veranlassung (Job-Relatedness): Second home established exclusively for employment purposes.
- Erste Tätigkeitsstätte (Proximity to Workplace): Second home located close to the primary place of work.
Only if all of these requirements are met are expats eligible to claim a double household deduction, also referred to as second residence for work purposes.
Prinz.tax Experience: Sometimes, the requirements are met but it is a matter of presenting your case to the German tax office in an adequate manner. We assist our clients in providing the right documentation and arguments to optimize their tax deductions.
What Can Potentially Be Deducted?
If the requirements are fulfilled, the following expenses are usually deductible:
- Rent for the second apartment in Germany (limited to EUR 1,000 per month under § 9 Abs. 1 Satz 3 Nr. 5 Satz 4 EStG).
- Utilities and furnishing costs (often limited to EUR 5,000 under BMF-Schreiben 25.11.2020, Rz. 108).
- Flights home or train tickets or mileage (certain restrictions will apply under § 9 Abs. 1 Satz 3 Nr. 5 Satz 5 EStG).
- Temporary meal allowances (limited to three months under § 9 Abs. 4a EStG).
- Additionally, relocation costs can be claimed; for details refer to our separate blog article.
Prinz.tax Practical Tip: Review your situation carefully and get expert support. For many expats, this can easily amount to several thousand euros per year.
The Biggest Problem for Claiming Double Household Deductions: Often Expats Misunderstand the Rules
Many people assume: “I still have a home abroad; therefore I automatically qualify.” Or: “I will put together all the expenses I have while living in Germany and claim a tax deduction.” Unfortunately, it is not that simple. German tax authorities closely analyze:
- where your real center of life is located
- whether you financially maintain the primary household
- how often you return home
- whether the arrangement is temporary or permanent
- your family situation
- your employment structure
- whether the costs claimed are generally eligible
- if a ceiling exists or a lump-sum deduction should be applied
Especially in international cases, the documentation requirements are often extensive.
Prinz.tax Observation: In practice, we frequently see that the outcome depends less on the basic idea itself and more on how the case is structured, documented, and presented to the German tax office.
FAQ: Double Household Expenses for Expats in Germany
Can expats claim double household expenses in Germany?
Yes. Expats may claim “Doppelte Haushaltsführung” deductions if they have a primary household outside their work location and maintain a second residence in Germany for professional reasons.
What expenses are deductible under “Doppelte Haushaltsführung”?
Potential deductions may include:
- rent for a second apartment,
- utilities and furnishing costs,
- flights home, train tickets and mileage,
- meal allowances,
- and certain relocation expenses.
Does keeping a home abroad automatically qualify for double household expenses deductions?
No. German tax authorities closely review whether the foreign residence is genuinely maintained as the taxpayer’s primary household and center of life. Expats who move to Germany with their family and maintain their residence in their home country are usually not eligible.
Can expats deduct flights and other travel expenses to their home country?
In many cases, yes. However, restrictions and documentation requirements apply, especially for international travel expenses.
What is the biggest mistake expats make?
Many expats assume that simply having two residences automatically qualifies them for tax deductions. In practice, German tax authorities require detailed proof and documentation.
Why are international double household cases complex?
International cases often involve:
- foreign residences,
- multiple tax jurisdictions,
- employer-provided housing,
- family members abroad,
- and extensive documentation requirements.
Our Experience with Expat Tax Returns
At Prinz.tax, we specialize in German expat taxes. We regularly prepare German tax returns for expats with:
- International relocations from countries all over the globe (U.S., Canada, Europe, South America, Asia and Africa)
- split-family structures
- temporary relocations
- international commuting situations
- multi-country income
“Doppelte Haushaltsführung”/ double household expenses can create substantial tax savings for expats in Germany, but international cases are rarely straightforward. German tax rules are highly fact-specific, documentation-heavy, and often more complicated than many expats initially expect.
For this reason, many international employees prefer having their German tax return professionally prepared to avoid mistakes and missed deductions.
