Double household expenses: The car parking space is also deductible.

Good news for commuters maintaining two households: They can now also deduct the costs of a parking space or garage at their place of work as business expenses. This was decided by the Federal Fiscal Court.

Following a decision by Federal Finance Court (BFH) In the case of maintaining two households, expenses for a parking space can be claimed as additional business expenses alongside the rental costs for the second residence – even if the maximum amount of 1.000 euros has already been reached through the rent for the apartment.

In this specific case, a regional sales manager for a wholesale company had rented an apartment in Hamburg, his place of work, in addition to his main residence in Lower Saxony. The monthly rent, including utilities, exceeded the Maximum amount of 1.000 euros per month (or 12.000 euros per year)which the tax office recognizes for the second residence. He also rented a parking space in an underground garage for his company car for €170 per month (or €2.040 per year). The rental agreement for the parking space was tied to the term of his apartment lease. In his income tax return, the plaintiff claimed the parking space costs as business expenses in addition to the apartment rent (Schedule N - Double Household Management).

The tax office allowed the rent as a business expense but denied the deduction of parking space costs, citing the already exhausted maximum allowance of €1.000. The Lower Saxony Tax Court upheld the appeal. The Federal Fiscal Court confirmed its decision.

Especially in a large city like Hamburg, you need a parking space.

The reasoning: Although the deduction for advertising expenses for accommodation costs in the context of maintaining two households is limited to 1.000 euros per month, the expenses for a parking space at the second home are not subject to this deduction restriction.

These expenses are not for the use of the accommodation itself, but for the use of the parking space. Therefore, they are deductible as business expenses, insofar as necessary. Due to the tight parking situation in Hamburg, it is necessary to rent a parking space.

The Federal Fiscal Court (BFH) has also clarified that the specific terms of the lease agreement are irrelevant for the deductibility of parking space costs. It is therefore immaterial whether the parking space is rented together with the apartment under one lease agreement or under a separate lease agreement, possibly from different landlords. The court thus expressly deviated from the tax authorities' position in the letter from the Federal Ministry of Finance dated November 25, 2020 (Federal Tax Gazette I 2020, 1228, para. 108), to the benefit of taxpayers.

Federal Fiscal Court, judgment of November 20, 2025, published on January 8, 2026 - VI R 4/23

Source: BFH

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