A second residence can be expensive for students - Germany's second-home tax creates unequal burdens for students and renters
Cities across Germany are taking different approaches to the second-home tax, particularly affecting students and temporary residents. The levy varies widely in structure, rate, and exemptions, creating a patchwork of rules. Some municipalities use it to boost revenue, while others aim to encourage primary residency registration.
Mainz has enforced its second-home tax since 2005, charging 10% of the annual net cold rent. If multiple tenants share an apartment, only the portion corresponding to each person's use is taxed. Gießen introduced a similar tax in early 2014, setting its rate at 12% of the net cold rent.
In Hesse, at least three major cities—Frankfurt, Darmstadt, and Kassel—apply the tax to students. Frankfurt charges 10% of the annual rent, though it makes exceptions for married couples or registered partnerships. Darmstadt's rate is higher at 15%, with similar exemptions. Kassel, however, sets its rate at 8% and does not offer student-specific exceptions.
Trier and Kassel differ further in their policies, with each adjusting rates and exemptions to fit local priorities. The tax often targets students registering a secondary address, as cities lose state funding when residents list a primary home elsewhere. Some municipalities justify the charge as a way to tap into the financial capacity of vacation homeowners or push for more permanent residency registrations.
The second-home tax remains inconsistent across cities, with rates ranging from 8% to 15% and varying exemptions. Students and temporary residents face different financial burdens depending on location. The policy continues to shape where people register their primary address, directly impacting municipal funding.
