Freelancers and self-employed can declare the costs of their working area in their home as an expense if used for business activities.
What is the requirement for declaring the home office as an expense?
The room which is used as an office must be a separate room, used almost exclusively for professional purposes. For example, a bedroom with a desk in the corner cannot be declared as an home office.
How much can I deduct for my home office?
To calculate the office portion, divide the working area of your home by the total area of your home.
You would then be able to declare the office portion of the total rent as a business expense.
You pay 1000€ rent for your home. The area of your home is 100 square meters, and the area of the home office room is 10 square meters.
The home office portion would be 10sqm / 100sqm = 10%.
The rent relative deduction would be 1000€*10% = 100€.
100€ can be declared as a business expense every month.
Is there a limit to how much I can deduct?
Your home office is the center of your business activity
If the home office is where the actual service is performed, there is no limit to the possible tax deduction.
Your home office is an essential room to the business but not the center of your business activity
If the actual service is performed outside of the home office and the home office is needed to carry out activities for which no other room is available, you will be able to declare up to 1,250€ per year for your home office as a business expense.
Can I also deduct part of the utility bills?
Yes, it's possible to deduct the relative portion of your utility bills as an home office expense. This includes: electricity, water, gas, cleaning, etc...
Sorted tax guides are provided without liability and do not replace a tax advisor.
To get an accurate answer for your specific case, please consult a tax advisor.
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