Parking Space Rentals for Dual Households: What the Federal Fiscal Court Now Allows

Housing is expensive, especially in major cities like Hamburg, Munich, or Berlin—and the monthly cap of 1,000 euros for housing costs under the dual-residence rule is quickly reached. Many working people with a second home therefore wonder whether additional costs—such as for a rented parking space or an underground garage spot—can also be claimed as income-related expenses. The Federal Fiscal Court (BFH) has now provided a clear answer to this question: Yes, they can—outside the €1,000 limit.

BFH ruling of November 20, 2025: Parking space is not part of accommodation costs

In the underlying case, a regional sales manager with his primary residence in Lower Saxony had rented a second home in Hamburg for professional reasons. In addition to the apartment, he rented a parking space in the residential building’s underground garage for 170 euros per month. The lease agreements for the apartment and the parking space were legally linked—the terms and notice periods were identical.

The tax office denied the deduction of the parking space rent as an income-related expense, citing the €1,000 limit for housing costs (Section 9(1), Sentence 3, No. 5, Sentence 4 of the Income Tax Act (EStG))—a common practice based on a Federal Ministry of Finance (BMF) letter from 2020. However, both the tax court and the Federal Fiscal Court (BFH) saw it differently.

Parking space costs are not considered accommodation costs

In the BFH’s view, parking space rent does not constitute costs for the use of the accommodation, but rather expenses for a separate economic asset—regardless of whether the apartment and parking space were rented together or separately. According to the ruling, the fact that both are located on the same property is also irrelevant.

This means that parking space costs may be claimed for tax purposes in addition to housing costs without being counted toward the €1,000 limit.

Implications for Taxpayers

The decision brings greater clarity and financial relief for many working people with a second home—especially in expensive cities where parking spaces often must be paid for separately. Taking such additional costs into account in the tax return can lead to a noticeable tax reduction.

It is also interesting to look at the legislative history from 2014: The original plan was to include parking space rental costs in the upper limit. However, the Federal Fiscal Court (BFH) clarified that this intention was not clearly enshrined in the law—which is an advantage from the taxpayer’s perspective.

Practical Tip: List Parking Space Separately

Anyone who rents a parking space or a garage as part of a dual-household arrangement should list the rental costs separately on their tax return—ideally with a separate lease agreement or as a distinct item in the overall lease agreement. It is important that the parking space is not an integral part of the accommodation (e.g., an underground parking space that is inseparably included in the lease without a separate rental fee).

Conclusion: Federal Fiscal Court Supports Taxpayers with Dual Households

With its ruling, the BFH reinforces the tax deductibility of work-related additional expenses—and finally provides clarity on how parking space costs should be classified. Taxpayers can now claim these costs as income-related expenses in addition to accommodation costs of up to 1,000 euros per month.

As tax advisors in Düsseldorf and Oberhausen, we are happy to help you optimize the tax treatment of your dual household arrangement and fully utilize all available tax breaks.