German BFH Decides on Tax-Deductible Dual Household Expenses

Jan 29, 2026 Benn-Ibler Rechtsanwälte

The German Federal Fiscal Court (Bundesfinanzhof, hereinafter BFH) has recently ruled on the tax deductibility of parking space costs in the context of maintaining two households.

Second residence

The case pertains to a second residence, including a designated parking space, situated at the plaintiff's place of employment. The plaintiff, employed as a regional sales manager across Germany, maintained this secondary residence in proximity to his workplace while retaining a primary home elsewhere. Notably, the underground parking space associated with the second residence was leased separately via an independent agreement.

The rental fee for monthly parking space amounted to EUR 170, resulting in a total cost of EUR 2,040 for the contested year 2020. The plaintiff included these expenses in his income tax return as income-related costs associated with maintaining two households. The tax office denied this deduction on the grounds that the statutory maximum of EUR 12,000 for accommodation expenses had already been reached. Subsequently, the tax court ruled in favor of the plaintiff, prompting the tax office to file an appeal.

Expenses for parking spaces are not classified as maintenance costs

The BFH upheld the lower court’s ruling, stating that parking space costs are not part of the capped accommodation expenses. This decision is based on Section 9(1), sentence 3, no. 5, sentence 4 of the German Income Tax Act, which specifically refers to ‘expenses for the use of accommodation.’ Since a parking space serves solely for vehicle parking and not for using the living space itself, it is considered a separate economic asset.

Whether the parking space and flat are rented together or separately, and regardless of location, what matters is their functional separation.

BFH VI R 4/23 (20 November 2025)