When is a holiday property deemed a second home?

Is a holiday home subject to registration as a second home?

If you use your holiday home privately – whether you rent it or own it – you must register it as a second home. The deadline is generally 14 days after you take up occupancy. The responsible authority is the residents’ registration office (Einwohnermeldeamt) at the location of the property. 

This registration requirement applies regardless of whether the holiday home is in the same municipality as your main residence. It also does not matter whether you use the property exclusively for yourself or partly for rental. If the holiday home is located abroad, the registration obligation in Germany does not apply. A property that is exclusively rented out and never used by the owner is not classified as a second home.

What applies if the main residence is abroad and the second home is in Germany?

If your main residence is abroad and you also own a property in Germany, you should have the legal classification reviewed on a case-by-case basis. The assessment usually depends on how long you stay in Germany each year and on the rules of the competent registration authority. A municipal second home tax may apply, depending on the local tax by-laws.

Which types of holiday property are suitable as a second home?

In principle, all types of property can serve as a second home. Whether it’s a holiday apartment, holiday house or student flat, it is not the type of property but the way it is used that determines whether it is classified as a second home.

Only when individual rooms are rented out does the classification differ from one municipality to another. Some authorities already treat a single room as a second home, while others require a self-contained residential unit or at least an integrated bathroom. If in doubt, the local city administration can provide precise information.

When looking for a holiday home to use as a second residence in popular tourist regions, another factor is crucial: the permitted use of the property. Some municipalities require prior approval if units are to be marketed as holiday lets for tourists. If a permit for tourist use already exists, this can lead to difficulties when registering the property as a second home. You will find more details in our article on properties with tourist use. 

Second home in Germany: Which locations make sense?

When choosing the location for a holiday home as a second residence, several aspects matter. If you mainly want to use the property yourself, you will select the region according to your personal holiday preferences. If you also intend to rent it out, regions with strong tourist demand and high occupancy are attractive.

Particularly popular regions in Germany include:

• German Baltic Sea: resorts along the coast and the islands of Rügen, Usedom, Hiddensee, Poel and Fehmarn

• German North Sea: coastal towns and islands such as Sylt, Amrum, Norderney, Föhr and Juist

• Alpine region: destinations for hiking and winter sports as well as Chiemsee and Tegernsee

• Major cities: Berlin, Hamburg, Munich, Leipzig, Cologne

• Cities without second home tax: Düsseldorf, Speyer, Wismar, Schwerin, Würzburg, Wolfsburg, Wernigerode, Gera, Jena

Attractive international locations include:

• Italy: Tuscany, Lake Garda and South Tyrol

• Spain: Canary Islands and Balearic Islands

• Austria: Tyrol

• Portugal: Algarve

What costs arise for a second home?

As with a main residence, a holiday home used as a second home incurs at least the usual running costs and service charges. In apartment buildings, these are covered via the monthly service charge or maintenance fee (“Hausgeld”) to fund operating costs and repairs in the building where the second home is located.

Additional costs can include gardening services for properties with outdoor space, cleaning staff for end-of-tenancy cleaning after rentals or regular monthly cleaning and rent, if the holiday home is not owned but leased. Ongoing contracts for services such as internet, telephone or pay TV continue even when the holiday property is not occupied.

Second home tax: What applies in your municipality?

Whether second home tax is levied is decided by each municipality individually. As a local expenditure tax for the use of communal infrastructure, it is permitted but not compulsory.

The basis of assessment is the annual net rent excluding utilities (Nettokaltmiete). For owner-occupied properties, the municipality uses the local reference rent.

Tax rates vary considerably:

• Munich: 18% of the annual net rent (doubled since 2022)

• Hamburg: 8%

• Berlin: 20% (since 2025, previously 15%)

• Sylt: 6%, with an individual calculation basis (degree of own use, size, location, year of construction)

• Jena: no second home tax

These examples show how differently the tax burden can look from one location to another. Comparing potential locations is worthwhile.

Who is exempt from second home tax?

Certain groups of people are exempt from second home tax, including:

• Married employees who maintain a second home at their place of work while their family lives at the joint main residence

• People living in a care home, retirement home, hotel or other collective accommodation

• Young people under 16 years of age

• In Bavaria: individuals with annual income below EUR 29,000

• Owners who let their holiday home exclusively and never use it themselves

Important: Even a few weeks of private use per year can be sufficient to trigger tax liability.

Is tax payable on several second homes separately?

Yes. Under Section 21 of the German Federal Registration Act (Bundesmeldegesetz), every residence in addition to the main residence is considered a second home. This means that each holiday property with private use is assessed individually. If you own several properties in municipalities that levy second home tax, the tax is due in each municipality.

This only applies to properties that you use yourself. Pure investment properties that are exclusively rented out are exempt. If you sell a holiday home, you must remember to deregister it at the residents’ registration office – otherwise the tax obligation continues.

Does second home tax apply if the property is only used occasionally?

Some municipalities calculate second home tax on a daily basis, others by the month. If you register your second home, for example, on the 15th of a month, you will pay half the monthly tax in one municipality and the full month in another.

From the municipality’s perspective, it is irrelevant whether you use the property only during the holiday season or every weekend – this does not affect tax liability. However, some municipalities do take the “availability” of the second home to the owner into account. This is calculated based on the length of time the property is rented out compared with the days it is not rented.

For example, if you own a holiday apartment in Westerland on Sylt and rent it out for fewer than 180 days per year, you pay the full tax. With more than 270 rental days per year, the availability to you as owner is still calculated at 30%.

When is second home tax payable?

Each municipality sets its own payment arrangements. However, an annual tax declaration for the second home tax must always be submitted – either to the local tax office or directly to the municipality.

Typical payment schedules include:

• Annually in advance: common in many smaller municipalities

• Half-yearly: for example in Cologne

• Quarterly: for example in Hamburg

• Fixed date in July: standard practice in some municipalities

The deadline for submitting the tax declaration is also determined by the respective municipality.