Tax for a second address in Germany

Having two registered addresses in Germany is disadvantageous in terms of tax liability. Many foreign workers undertaking employment in Germany submit a statement regarding running a double household, a so-called Doppelte Haushaltsführung.

It is an important declaration for the employees. If they manage to prove that their primary place of residence and their centre of vital interests are located in Croatia, and that due to their employment they have another registered address in Germany, they are entitled to an additional tax-free daily allowance.

Croatian workers can rest assured – a second registered address in Croatia is not encumbered with this additional tax. They can continue collecting their supplementary daily allowance without any liabilities.

However, registering two separate addresses in Germany may turn out to be disadvantageous with respect to tax payment. Recently, a public dispute has been provoked by a controversial decision of some residence register offices to impose a ‘Zweitwohnsitz’, i.e. secondary residence tax.

There have been cases of workers who registered a temporary secondary place of residence in Germany, while already being registered at another place of residence in that country. They were obliged to pay a tax on their secondary registered address.

Workers are usually registered by their employers at a secondary residence when they take on a temporary assignment in a different part of Germany. Therefore, an employee should discuss his residence options with his employer and avoid registering a second address in Germany.

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