How to declare a double residence?

In summary

Declaring a double residence may seem complex, but it is essential to optimize your finances and comply with tax legislation. This guide will help you understand the necessary steps and the expenses you can deduct.

What is a double residence?

A double residence occurs when, for professional reasons, a taxpayer occupies two different homes. This can include having a primary residence and a second residence close to the workplace.

The criteria for double residence

For expenses related to a double residence to be tax deductible, certain strict conditions must be met. These criteria ensure that the double residence is not just a personal choice, but a necessity imposed by professional constraints.

Professional obligation

Expenses for double residence are only deductible if the secondary residence is imposed by professional reasons. This means the taxpayer must justify that their professional situation requires them to occupy two homes. This double residence must be independent of their will, and they must demonstrate that it is not simply a preference but an obligation resulting from their employment.

For example, a transfer to another city or a career advancement requiring proximity to the workplace are valid reasons. Conversely, if the double residence results from a personal convenience, like the desire to live in two different regions for comfort reasons, the expenses will not be eligible for a tax deduction.

The minimum distance

One of the most important criteria for this deduction is that the workplace must be at least 40 kilometers from the primary residence. This minimum distance is an objective measure to prove the necessity of a double residence. It shows that the taxpayer cannot make the round trip daily between their main home and workplace without incurring excessive constraints.

If the distance is less than 40 kilometers, justifying the need for a double residence will be difficult unless there are special circumstances such as a very long commute time due to road or transportation conditions.

Efforts to bring locations closer

Another essential criterion is to prove that the taxpayer has made efforts to bring their residence closer to their workplace but that these efforts have been unsuccessful. They must demonstrate that they explored options to move nearer, but circumstances beyond their control prevented them from doing so.

These circumstances can include:

• Spouse’s employment: If the spouse works near the primary residence and cannot move for professional reasons, this can justify maintaining a double residence.
• Children’s schooling: If moving would compromise the children’s stability, this can also be a valid reason.
• Job insecurity: If the job leading to the double residence is temporary (fixed-term contract, seasonal contract, trial period), moving the entire family may not be advisable.

Deductible expenses

In the context of a double residence, it is possible to deduct several types of expenses from your taxable income. These deductions are essential to offset the additional costs associated with occupying two homes. Here are the main categories of deductible expenses.

Rent and charges

The first expense category concerns the rent of the second residence. If you are renting a secondary residence for professional reasons, the amounts paid for rent are deductible from your taxable income. This also includes charges related to occupying this residence, such as:

• Water bills, essential for daily life in the home.
• Electricity expenses that provide a suitable working and living environment.
• Gas costs for heating or cooking.

These expenses often represent a significant burden for taxpayers with double residences, making it important to be able to deduct them.

Travel expenses

Travel costs between the primary and secondary residences are also eligible for deduction. Generally, you can deduct expenses for a round trip per week to connect to your family home. These costs may include:

• Kilometric expenses, calculated according to the official rate based on distance traveled and vehicle power.
• Train tickets or other public transportation used to reach your family, provided that this is the most reasonable way to make the trip.

These regular trips can be costly, making it important to include them in your actual expenses to reduce your tax burden.

Loan interest

If you have acquired a property to serve as a secondary residence, the interest on the loan for this purchase is also deductible. However, this deduction is subject to certain conditions:

• The property must be used as a long-term secondary residence, meaning for an extended period, not for temporary or occasional use.
• Only interest on the loan is deductible, not the repayment of the borrowed capital.

Acquiring a secondary residence is a significant investment, and the ability to deduct loan interest helps reduce the financial burden on the taxpayer.

Non-deductible expenses

Within a double residence setup, although several expenses are eligible for tax deduction, some costs cannot be deducted from taxes, even if they are related to occupying the second home for professional reasons. Here is an overview of non-deductible expenses.

Internet and phone subscriptions

Internet subscriptions and phone lines, although essential for daily life and often used for professional purposes, are not eligible for tax deduction. This is because these services are considered personal expenses, unless you can prove that the subscription is exclusively dedicated to professional use. If not, these costs must be borne by the taxpayer without tax advantage.

Decoration and renovation expenses

Any expenditure to improve aesthetics or comfort of the secondary residence cannot be deducted. This includes:

• Expenses related to interior decoration (painting, furniture, curtains, etc.).
• Renovation works that are not essential to the use of the property (such as installing a new kitchen or remaking a bathroom).

These expenses are considered personal choices, and even if they improve quality of life, they are not recognized as professional expenses that can justify a deduction.

Rental value of the property

Even if you own your secondary residence and use it for professional reasons, it is impossible to deduct the rental value of this property. Indeed, the tax authorities consider that you occupy this residence on a personal basis, even if it is necessary for your work. Unlike rent paid for a rented property, the rental value does not represent a direct expense and thus cannot be included in your actual expenses.

Steps to declare a double residence

To declare a double residence, it is important to correctly fill out your tax declaration by specifying all actual expenses. You must provide a detailed justification of the incurred expenses, as well as the professional reasons that led to occupying two homes.

Deductible and non-deductible expenses

Deductible travel expenses

Supporting documents to keep

Distance criteria and eligibility conditions

Maximum expenses per type of cost

Conclusion

Declaring a double residence can help reduce your taxes, but it requires a good understanding of the criteria and deductible expenses. By following the necessary procedures, you can optimize your tax situation while remaining compliant with legislation.

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