simultaneous residence abroad and another residence/work in the home country.
February 6, 2012 | 40,00 EUR | answered by Dipl.BW/SB Ulrich Stiller
Since my friend has moved to London for work reasons, we share an apartment there. At the same time, I live in Germany with my brother in a shared flat. I now need to register a new primary residence or change my registration.
The question is whether it is possible to register a second residence abroad (as apparently every residence registered in Germany counts as the primary residence), so that I can deduct travel expenses from taxes.
Is there any other tax-efficient solution, such as deregistering in Germany but continuing to work here?
Dear advice seeker,
Thank you very much for your inquiry, which I would like to answer based on the information you provided and in the context of your situation in a first consultation as follows:
If you live with your friend in London, it can be assumed that you have your own household there and therefore the center of your life, which you moved from Germany to London in England for personal reasons.
According to the rulings of the Federal Fiscal Court from 5.3.2009 (VI R 58/06 and VI R 23/07), an existing residence at the place of employment can be considered a second residence, even if the move to the "new" center of life was for personal reasons.
Since you continue to work in Germany, I assume that you spend more than 183 days in Germany for work-related reasons, you would be subject to unlimited income tax liability in Germany, as you have ONE residence or habitual abode here.
This would allow you to claim business expenses for double household management in the income from employment, which include:
- Travel expenses at the actual amount at the beginning of household management. Alternatively, the general mileage allowance (travel expenses) of 30 cents per kilometer can be used.
- Expenses for the second residence in Germany
- Generally, weekly home visits
- Meal allowances of €24 per day for the first 3 months.
Possibly other expenses that need to be determined on a case-by-case basis.
Subject to a detailed review of the facts, you should register your second residence in Germany.
If you no longer have a residence in Germany, but still have a habitual abode in Germany, if you stay in Germany for more than 6 months, as I assume, since you will only be in London on weekends and during holidays. You would also be subject to unlimited income tax liability in Germany.
You should seek detailed tax advice here, as your description of the situation is very brief and a detailed investigation of the facts will be necessary. Therefore, my explanations can only provide an initial assessment.
Sincerely,
Ulrich Stiller
Tax consultant / Graduate in Business Administration
