diff --git a/cmd/main.go b/cmd/main.go
index fd648946ef..7251bd09a3 100644
--- a/cmd/main.go
+++ b/cmd/main.go
@@ -165,6 +165,7 @@ func NewMainApp(appVer AppVersion) *cli.App {
 	app.Commands = append(app.Commands, subCmdWithConfig...)
 	app.Commands = append(app.Commands, subCmdStandalone...)
 
+	setting.InitGiteaEnvVars()
 	return app
 }
 
diff --git a/models/unittest/testdb.go b/models/unittest/testdb.go
index 75044d19e8..43d084845c 100644
--- a/models/unittest/testdb.go
+++ b/models/unittest/testdb.go
@@ -59,6 +59,7 @@ func InitSettings() {
 	_ = hash.Register("dummy", hash.NewDummyHasher)
 
 	setting.PasswordHashAlgo, _ = hash.SetDefaultPasswordHashAlgorithm("dummy")
+	setting.InitGiteaEnvVars()
 }
 
 // TestOptions represents test options
diff --git a/modules/setting/config_env.go b/modules/setting/config_env.go
index dfcb7db3c8..f05e8a4d7b 100644
--- a/modules/setting/config_env.go
+++ b/modules/setting/config_env.go
@@ -166,3 +166,8 @@ func EnvironmentToConfig(cfg ConfigProvider, envs []string) (changed bool) {
 	}
 	return changed
 }
+
+// InitGiteaEnvVars initilises the environment for gitea
+func InitGiteaEnvVars() {
+	_ = os.Unsetenv("XDG_CONFIG_HOME") // unset if set as HOME is managed by gitea
+}