What You Need To Know About The Second Home Tax
As your partner for a smooth relocation, we would like to inform you about an important tax regulation: the second home tax (Zweitwohnungsteuer). This may be relevant if, in addition to your primary residence, you have or plan to rent another apartment (second home) in Germany.
What is a Second Home?
A secondary residence is any dwelling that
· the owner or the tenant or
· the tenant or
· the other person authorized to use it
as a secondary residence within the meaning of the Federal Registration Act for the purposes of personal living. This also includes secondary residences provided free of charge.
Important Note:
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The second home tax is automatically incurred as soon as you have a second home. No application is required.
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The tax obligation exists regardless of whether you actually use the second home.
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The tax is levied in addition to other taxes (e.g., income tax).
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Even if your primary residence is also in the same city, the second home tax must be paid.
How High is the Second Home Tax?
The amount of the second home tax is determined by the respective cities and municipalities and can therefore vary.
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In Berlin, for example, the second home tax is 20% of the annual net cold rent.
Please note that this is just an example. The actual amount of the tax in other cities may differ.
If you do not pay rent for the second home you use, this will be replaced by the amount resulting from application of the applicable rent index.
How Does the Process Work?
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Registration: After registering your second home with the responsible citizens' registration office, the tax office is automatically informed.
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Tax Return: You will usually receive a request from the tax office to submit a second home tax return.
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Deadline: The tax return must be submitted by May 31 of the year in which the tax is calculated. If you move in after May 1, the deadline ends at the end of the following month.
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Assessment & Payment: The tax office calculates the tax based on your information and requests you to pay it.
Important Note:
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Even if you do not receive a separate payment request, you are obliged to pay the second home tax and submit a tax return. In case of doubt, please contact the responsible tax office independently. Although the tax authorities usually send a message about one month after registration, this does not release you from your obligation to file a tax return.
How are the Tax Bases Determined?
The second home tax is an annual tax. The tax bases are re-determined every three years. The basis is the net cold rent in the first full month of the assessment period, multiplied by the number of months in the taxation period. This is the first full month of rent when moving in and always January in the following years.
Source: FAQ Second Home Tax
Further Information:
Detailed information on the second home tax, the exact regulations, and the applicable tax rates can be obtained from the city or municipal administration of your second home or from the responsible tax office.
If you have any questions about your individual taxation, always contact your tax advisor.
We hope this information has been helpful to you. Please do not hesitate to contact us if you have any further questions!
