For a second household to be recognised for tax purposes, a second residence must exist outside the centre of life (first household) — known as the second household — that is significantly closer to the workplace. The second household must have been established for professional reasons.
Particularly with young single employees, it is common for the first household to still be maintained at the parents' home. In such cases, the second household is only recognised if a financial contribution to the multi-generational household can be demonstrated. In other words: a carefree life at "Hotel Mum" with free board and lodging is not sufficient for recognition.
The BFH addressed the criterion of financial contribution in detail in a 2023 ruling. According to this decision, it is not enough if the financial contribution remains within a "trivial range". In the view of the tax authorities, the trivial threshold is only exceeded once cash contributions amount to more than 10% of the regular monthly household costs.
However, the BFH rejected such a rigid limit and also clarified that the contribution does not necessarily have to be paid in fixed monthly amounts. Retroactive payments as well as one-off or extraordinary financial contributions are also permissible. In addition, the BFH ruled that a self-contained dwelling at the centre of life is not strictly required for the recognition of a second household for tax purposes.
What matters is the contribution to the costs of living. Whether a deduction for maintaining two households is possible in a particular case — especially in situations involving living in the parental home — should be reviewed by a Steuerberater (German Certified Tax Advisor).
Note
The costs of living are quite comprehensive and by no means limited to grocery shopping. They also include, for example, rent or loan instalments, utilities, telephone and internet, maintenance, and costs for jointly used household appliances and furniture.