Accommodation for employees

An employer who provides accommodation for his employees may claim expenses related to accommodation as tax deductible if the accommodation is:

• In relation to his own employees;
• Provided in own or rented buildings classified under codes 112 (buildings with two or more units) and 113 (other residential buildings) of statistical classification of buildings,
• If the predominant activity of the employer is production performed in multi-shift operation.

If the above-mentioned conditions are not fulfilled, the employer may classify costs on employees’ accommodation as tax deductible only if having character of fringe benefit agreed in an employment, collective agreement, or other similar agreement or in an internal procedure and taxable in full amount at the employee’s side.

Accommodation provided by the employer in in‑kind form is exempt from the taxation for the employee who is in employment relation with the employer. The amount subject to exemption depends on the length of the employment relationship:

• If an employment with the employer lasts continuously for at least 24 months or more, tax exemption can be applied up to € 350 per month;
• If an employment with the employer lasts less than 24 months, tax exemption can be applied up to € 100 per month.

For the situations when the accommodation is not provided by the employer during the entire calendar month, the above-mentioned limits are determined on pro-rata basis. Should the amount of accommodation provided by the employer is higher than statutory limits, only the amount above the mentioned limit represents the employee's taxable income.