Second Residence Tax (Zweitwohnsitzsteuer) — When It Applies and How to Avoid It

What is Zweitwohnsitzsteuer?

Zweitwohnsitzsteuer (also called Zweitwohnungssteuer) is a municipal tax you must pay if you have a Nebenwohnung (second residence) in addition to your Hauptwohnsitz (primary residence). Not all cities levy this tax — but increasingly more are doing so.

The tax is designed to prevent people from registering in a cheaper municipality as their primary residence while actually living elsewhere. This is because your Hauptwohnsitz determines which municipality receives your income tax share.

Who Must Pay Zweitwohnsitzsteuer?

You pay the tax if you:

• Are registered in a city as your Hauptwohnsitz AND
• Have a Nebenwohnung in another city (that levies this tax)

Typical Situations

• Commuters — Primary residence with family, second residence at workplace
• Students — Primary residence with parents, room in university city
• Weekend commuters — Work in one city, family in another
• Holiday apartment — Your own holiday residence in a tourist city (even if you rarely live there!)

Exemptions (varies by city)

• Married persons — Second residence for professional reasons is exempt in many cities (according to 2005 BVerfG ruling)
• Persons under 18 — no tax in most cities
• Nursing home residents — often exempt
• Low-income students — some cities offer reductions

How Much is the Tax?

Zweitwohnsitzsteuer typically amounts to 5–18% of annual net rent:

Calculation Example

Second residence in Berlin, net monthly rent €600:

• Annual rent: 600 × 12 = €7,200
• Berlin tax rate: 15%
• Zweitwohnsitzsteuer: 7,200 × 0.15 = €1,080/year (= €90/month)

For owned property: Instead of rent, the imputed rent (locally comparable rental value) is used.

Registration and Payment

When Must I Register?

When you occupy a Zweitwohnung, you must register with the registration office within 14 days (Meldepflicht). The registration office then notifies the tax office.

Tax Assessment Notice

• The tax office sends you a tax assessment notice
• The tax is usually levied annually or quarterly
• Payment via bank transfer or direct debit

What Happens if I Don't Register?

• Fine for violating Meldepflicht (up to €1,000)
• Back taxes for all missed years
• Tax evasion if intentional non-registration (criminal consequences)

How Can I Avoid the Tax?

1. Make Your Second Residence Your Primary Residence

Register your Zweitwohnung as your Hauptwohnsitz — then no tax applies. Note: Your Hauptwohnsitz determines:

• Competent tax office
• Voting rights (municipal elections)
• Vehicle registration
• Child allowance office

2. Deregister the Apartment

If you no longer need the Zweitwohnung → deregister.

3. Request an Exemption

In many cities, you can request an exemption:

• For low income (below a certain threshold)
• For professionally required second residence for married persons (BVerfG ruling)
• For students (in some cities, e.g., if parents provide the apartment)

4. Deduct Tax as Business Expenses

If the Zweitwohnung is professionally required, you can deduct the tax as business expenses on your tax return (dual household, § 9 EStG):

• Requirement: separate household at primary residence
• Maximum €1,000/month for workplace accommodation deductible
• Also commuting costs for weekly trips home are deductible

Zweitwohnsitzsteuer and Foreigners

Common Situations

• New immigrants — Primary residence in home country, apartment in Germany → Usually no Zweitwohnsitzsteuer, as the German apartment is your only residence in Germany and counts as Hauptwohnsitz
• Family in another city — Partner in City A, work in City B → Zweitwohnsitzsteuer in City B possible (often exempt for married persons)
• Foreign students — Apartment in university city is your Hauptwohnsitz → no tax

Tip

Always register your first residence in Germany as your Hauptwohnsitz. Only if you later take a second apartment in another city does Zweitwohnsitzsteuer become relevant.

Frequently Asked Questions

Do I Pay Tax on a Holiday Apartment Too?

Yes — if the holiday apartment is in a city that levies Zweitwohnsitzsteuer and you use it for yourself (not rent it out). With permanent rental to third parties, the tax usually does not apply.

What's the Difference Between Hauptwohnung and Nebenwohnung?

Your Hauptwohnsitz is the residence you primarily occupy (§ 22 BMG). If you spend equal time at two locations, the apartment where your center of life is (family, social contacts) counts as your Hauptwohnsitz.

Can My Employer Cover the Tax?

Theoretically yes, but rarely in practice. Coverage would constitute a taxable benefit and must be taxed.

Tips

1. Check before moving — does the city levy Zweitwohnsitzsteuer?
2. Always register on time — avoid fines and back taxes
3. Check exemptions — especially for professionally required second residence for married persons
4. Use your tax return — deduct Zweitwohnsitzsteuer as business expenses

Status: March 2026. All information without guarantee.