Workspace at home: when is it deductible?

What's the difference between an independent and dependent workspace?

The tax authorities distinguish between an independent and a dependent workspace. An independent workspace has its own entrance and own facilities, such as a bathroom, and could also be rented out to a third party. A study within your home, without its own entrance, is dependent. Most home workplaces fall into the latter category.

When is a workspace deductible?

With a dependent workspace, so a study in your home, the costs are not deductible in almost all cases. With an independent workspace part of the costs can be deductible, but then you must also earn a large part of your income in or from that space. The conditions are strict and depend on your situation.

What can you deduct?

Even if your workspace itself isn't deductible, genuine business assets remain deductible. Think of your computer, printer, business phone and internet costs and professional literature. Those are separate from the workspace.

For furniture such as a desk or office chair it's more nuanced. In practice these are often claimed as business costs, but strictly speaking the law doesn't count furnishing a dependent workspace among deductible costs. If in doubt, check before you claim it.

Worth knowing: business purchases up to 450 euros excluding VAT are deducted as costs in one go. More expensive business assets are capitalised on your balance sheet and depreciated annually, usually over five years.

What about VAT?

VAT follows its own rules, separate from income tax. You may reclaim VAT on business purchases to the extent you use them for business. If you use a laptop partly privately, for example, you only reclaim the business share. VAT on housing costs such as rent and energy stays out of the picture if your workspace isn't independent.

What's sensible to do?

Because the rules around the workspace are complicated and the deduction often disappoints, it's wise to have your situation assessed. An incorrect deduction can lead to a correction in an audit. If in doubt, run it by your bookkeeper before claiming anything.