On November 20, 2025, the Federal Fiscal Court (BFH) made an important decision regarding the tax treatment of parking space costs in the context of double household management during an oral hearing (case no. VI R 4/23). The central question was whether, following the revision of Section 9 (1) sentence 3 no. 5 of the German Income Tax Act (EStG), parking space costs should be classified as other additional expenses or as accommodation costs limited to €1,000.
Key considerations of the BFH
The BFH concluded that parking space costs do not count as accommodation costs, but should be considered as other additional expenses. As a result, they are not subject to the monthly €1,000 limit for accommodation costs in the context of double household management.
Reasoning of the court
- The term “accommodation costs” is narrowly defined by law and includes only the costs for the actual accommodation. Parking space costs are not included.
- Even in cases where renting a parking space is contractually required, the BFH maintains the distinction between accommodation and parking space.
- Since the change in the law in 2014, an absolute cost limit of €1,000 applies. If parking space costs were to be included, an explicit legal amendment would have been necessary.
- The court also expressed doubts about the appropriateness of the €1,000 limit, especially in light of rising rent and utility costs.
Outlook for the future
The full judgment is expected to be published on the BFH website within the next two weeks. The decision provides greater legal certainty and, in many cases, leads to tax relief, as parking space costs can now be claimed in addition to accommodation costs.
What does this mean for you?
If you incur parking space costs as part of a double household management arrangement, you can now claim these as other additional expenses—in addition to accommodation costs of up to €1,000. This ruling therefore has a positive effect on your tax treatment.
If you have any questions or would like an individual assessment, we are of course happy to assist you.
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Stephanie Saur Stephanie Saur has many years of experience in advising on payroll tax. As a Partner, she is responsible for the extension of professional specialisation in the field of employee taxation.View Profile -
Hannes Zug Hannes Zug specializes in comprehensive structuring and defense advice on employment tax issues and annex areas. As a partner at the Hamburg office, he is primarily responsible for the expansion of consulting services in the North/East regions of the Germany-wide employment tax service line.View Profile -
Sandra Guyot Sandra Guyot has gathered extensive experience in employment tax consulting for medium-sized companies and international groups of companies since 2013.View Profile -
Ekatarina Petrusevych Ekaterina Petrusevych has many years’ experience in national and international employee taxation and processing payroll. She is part of the payroll tax subservice line and works in the Düsseldorf office.View Profile -
Jasmin Ochsmann Jasmin Ochsmann has many years’ experience providing advice on wage tax to national and international business of various sizes.View Profile