How to declare a double residence?

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 home close to the workplace.

Criteria for a double residence

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

Professional obligation

Expenses for a double residence are deductible only 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 just a preference, but a requirement resulting from their employment.

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

The minimum distance

One of the most important criteria for benefiting from 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 daily round-trip between their primary 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 under special conditions such as a very long commuting time due to road or transport circumstances.

Efforts to get closer

Another essential criterion is to prove that the taxpayer has made efforts to bring their residence closer to their workplace, but these efforts have not succeeded. They must be able to demonstrate that they explored options to move closer, but circumstances beyond their control prevented it.

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 relocating would compromise the children’s educational stability, this can also be a valid reason.
• Job insecurity: If the work leading to the double residence is temporary (fixed-term contract, seasonal contract, trial period), it would be unreasonable to move the entire family.

Deductible expenses

Within the framework of a double residence, it is possible to deduct various 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 rent for the second residence. If you rent a secondary residence for professional reasons, the amounts paid for rent are deductible from your taxable income. This also includes charges related to occupying that property, such as:

• Water bills, essential for daily living in the accommodation.
• Electricity expenses, ensuring a suitable work and living environment.
• Gas costs for heating or cooking.

These expenses often represent a significant burden for taxpayers with double residences, hence the importance of being able to deduct them.

Travel expenses

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

• Mileage costs, calculated according to the official rate based on the distance traveled and your vehicle’s power.
• Train tickets or other public transportation used to join your family, provided it is the most reasonable means for the trip.

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

Interest on loans

If you have purchased a property to serve as a secondary residence, the interest on the loan taken out 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, i.e., for an extended period, not for temporary or occasional use.
• Only loan interest is deductible, not the repayment of the principal borrowed.

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

Non-deductible expenses

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

Internet and telephone 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 benefit.

Decorating and furnishing expenses

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

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

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

Rental value of the property

Even if you own your second residence and use it for professional reasons, it is impossible to deduct the rental value of this property. Indeed, the tax administration considers that you occupy this dwelling for personal purposes, even if it is necessary for work. Unlike rent paid for a leased property, the rental value does not represent a direct expense and cannot be included in your actual expenses.

Procedures for declaring a double residence

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

Deductible and non-deductible expenses

Deductible travel expenses

Supporting documents to keep

Distance criteria and eligibility conditions

Maximum expenses per fee type

Conclusion

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

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