Private entrepreneurs’ home office or work space: When can I make reductions?

A private entrepreneur who runs his company from home or from a home office can make reductions in accounting or tax returns. In fact, we recommend that you do utilize your home offices and work spaces in accounting or tax returns. It is important to note, however, that a home is always a private resource and does not fully belong to the company, because people also live there. A home is a private resource if at least half of the space is being used for non-business activities. Therefore a home does not usually get fully reduced, but the space dedicated to working can be reduced. In the event that more than half of a home is in business use, the home belongs to the businesses resources and all actual costs can be reduced. However, ‘private use’ has to be reduced at the end of the year in this case.

If a private entrepreneur has a work station at home, he can reduce the actual cost of the work station in relation to the surface area of the home. For example, if 30% of the surface area of the home is used as a work station, the private entrepreneur can reduce 30% from his rent. If the home is owned by the private entrepreneur, he can reduce 30% from remunerations. If business activity is small or having a work station at home is not necessary for business activities, reductions cannot be made. Costs must be based on real and actual costs.

Important! Payment of rent to oneself is not possible and reductions on rent are declared in the tax return in the marked spot.

In order for your accounting to make work space reductions on your behalf, you will need to submit the following information to them: the size of the apartment area (m2), the reserved area of ​​the work space area (m2 or %), as well as the rent or remuneration (€ during the previous fiscal year).