Home Office Tax Deductions in Germany: Complete Guide 2026

Working from home has become the norm for many freelancers in Germany. Whether you have a dedicated home office or just work from your kitchen table, you can deduct home office expenses from your taxes. However, the rules are specific, and understanding them can save you hundreds or even thousands of euros per year.

The German tax system offers two main methods for deducting home office expenses: the simplified home office allowance (Homeoffice-Pauschale) and the actual cost method (tatsächliche Kostenmethode). Each has its advantages, and choosing the right one for your situation can significantly impact your tax savings.

This guide will walk you through everything you need to know about home office tax deductions in Germany, from the basics to advanced strategies for maximizing your savings.

Why Home Office Deductions Matter

For freelancers, home office expenses can be one of the largest deductible expenses. Properly claiming these deductions can:

Reduce your taxable income: Lower taxes mean more money in your pocket
Offset the costs of working from home: Rent, utilities, and other expenses become partially deductible
Maximize your tax savings: Understanding the rules helps you claim everything you’re entitled to

However, many freelancers miss out on these deductions because they don’t understand the rules or think the process is too complicated. With the right knowledge, claiming home office deductions is straightforward and can save you significant money.

The Two Methods: Simplified vs. Actual Costs

German tax law offers two methods for deducting home office expenses:

1. Simplified Home Office Allowance (Homeoffice-Pauschale)

The simplified method is the easiest way to claim home office deductions. It was introduced in 2020 and made permanent in 2023.

How It Works:

You can deduct 6 EUR per day you work from home
Maximum: 1,260 EUR per year (210 working days × 6 EUR)
No need to prove actual costs
No need to have a dedicated room

Requirements:

You must work from home (not just occasionally)
The work must be your main professional activity
You don’t need a separate room - any workspace at home qualifies

Advantages:

Simple and straightforward
No documentation required
No need to calculate actual costs
Works for any home workspace

Disadvantages:

Limited to 1,260 EUR per year
May be less than actual costs for some freelancers
Cannot combine with actual cost method

Who Should Use This:

Freelancers who work from home regularly
Those who don’t want to track detailed expenses
People with smaller home offices
Those whose actual costs are less than 1,260 EUR/year

2. Actual Cost Method (Tatsächliche Kostenmethode)

The actual cost method allows you to deduct the actual expenses of your home office, which can be significantly more than the simplified allowance.

How It Works:

You calculate the actual costs of your home office
Costs are allocated based on the percentage of your home used for business
You can deduct a portion of rent, utilities, insurance, and other expenses

Requirements:

You must have a dedicated room used exclusively for business
The room must be used regularly for work
You cannot use the room for personal purposes

Advantages:

Can result in much higher deductions
More accurate reflection of actual costs
Can include all home-related expenses

Disadvantages:

More complex calculations
Requires detailed documentation
Must have a dedicated room
More likely to be audited

Who Should Use This:

Freelancers with dedicated home offices
Those with high rent or utility costs
People whose actual costs exceed 1,260 EUR/year
Those comfortable with detailed record-keeping

Understanding the Simplified Allowance

The simplified home office allowance is the most popular method because of its simplicity. Here’s how to use it:

Calculating Your Deduction

Basic Calculation:

Count the days you worked from home in the tax year
Multiply by 6 EUR per day
Maximum: 1,260 EUR (210 days)

Example:

Worked from home 180 days in 2025
Deduction: 180 × 6 EUR = 1,080 EUR

What Counts as “Working from Home”

The tax office considers you to be working from home if:

You perform your main professional work at home
You have a workspace at home (doesn’t need to be a separate room)
You work from home regularly (not just occasionally)

Important: You cannot claim the allowance if you only work from home occasionally or if your main workplace is elsewhere (like a client’s office).

Documentation Requirements

While the simplified method doesn’t require detailed receipts, you should:

Keep a record of days worked from home
Be able to explain why you work from home
Have evidence of your home workspace (photos, etc.)

Understanding the Actual Cost Method

The actual cost method is more complex but can result in much higher deductions. Here’s how it works:

Step 1: Determine Your Home Office Percentage

First, calculate what percentage of your home is used for business:

Calculation:

Measure the area of your home office (in square meters)
Measure the total area of your home (in square meters)
Divide: Home office area ÷ Total home area = Business percentage

Example:

Home office: 15 m²
Total home: 60 m²
Business percentage: 15 ÷ 60 = 25%

Step 2: Identify Deductible Expenses

You can deduct a portion of the following expenses:

Rent (Miete):

If you rent, you can deduct a percentage of your rent
Based on your business percentage

Utilities (Nebenkosten):

Electricity
Heating
Water
Internet (if used for business)
Phone (if used for business)

Insurance (Versicherungen):

Home insurance
Liability insurance (if business-related)

Depreciation (Abschreibung):

If you own your home, you can depreciate a portion
Based on the business percentage

Other Expenses:

Cleaning (if for business area)
Repairs and maintenance (if for business area)
Property tax (if you own)

Step 3: Calculate Your Deduction

Example Calculation:

Business percentage: 25%
Annual rent: 12,000 EUR
Annual utilities: 2,400 EUR
Annual internet: 600 EUR
Annual insurance: 300 EUR

Deduction:

Rent: 12,000 × 25% = 3,000 EUR
Utilities: 2,400 × 25% = 600 EUR
Internet: 600 × 25% = 150 EUR
Insurance: 300 × 25% = 75 EUR
Total deduction: 3,825 EUR

Requirements for Actual Cost Method

To use the actual cost method, you must:

Have a dedicated room: The room must be used exclusively for business
Regular use: You must use it regularly for work (not just occasionally)
No personal use: The room cannot be used for personal purposes
Proper documentation: Keep receipts and records of all expenses

Important Restrictions:

If the room is used for both business and personal purposes, you cannot use the actual cost method
You must be able to prove the room is used exclusively for business
Mixed-use rooms disqualify you from this method

Choosing the Right Method

Deciding between the simplified allowance and actual cost method depends on your situation:

Choose Simplified Allowance If:

You don’t have a dedicated home office room
Your actual costs are less than 1,260 EUR/year
You want simplicity and minimal documentation
You work from a shared space (like kitchen table)

Choose Actual Cost Method If:

You have a dedicated room used exclusively for business
Your actual costs exceed 1,260 EUR/year
You’re comfortable with detailed record-keeping
You want to maximize your deductions

Comparison Example

Scenario: Freelancer with 20 m² home office in 80 m² apartment

Simplified Method:

180 working days × 6 EUR = 1,080 EUR deduction

Actual Cost Method:

Business percentage: 20 ÷ 80 = 25%
Annual rent: 14,400 EUR × 25% = 3,600 EUR
Annual utilities: 2,400 EUR × 25% = 600 EUR
Annual internet: 720 EUR × 25% = 180 EUR
Total: 4,380 EUR deduction

In this case, the actual cost method saves 3,300 EUR more in deductions!

Additional Deductible Expenses

Beyond the basic home office deduction, you can also deduct:

Office Equipment and Furniture

Fully Deductible:

Desk, chair, filing cabinets
Computer, monitor, keyboard
Printer, scanner
Office supplies

Depreciable:

Expensive equipment (over 800 EUR net)
Furniture (if over threshold)

Internet and Phone:

If used primarily for business, can be 100% deductible
If mixed use, deduct business percentage

Software and Subscriptions:

Accounting software
Cloud storage
Professional subscriptions

Professional Development:

Online courses
Webinars
Training materials

Common Mistakes to Avoid

Many freelancers make these mistakes with home office deductions:

1. Not Claiming at All

Many freelancers don’t realize they can claim home office expenses
Even a small deduction is better than nothing
The simplified method makes it easy

2. Using Wrong Method

Choosing simplified when actual costs would be higher
Not understanding the requirements for actual cost method
Missing out on significant savings

3. Insufficient Documentation

Not keeping records of days worked from home
Not having receipts for actual cost method
Unable to prove business use of space

4. Claiming Personal Expenses

Trying to deduct personal expenses as business
Not properly allocating mixed-use expenses
This can lead to tax penalties

5. Not Understanding Requirements

Claiming actual cost method without dedicated room
Not meeting the “exclusive use” requirement
This can result in denied deductions

Documentation and Record-Keeping

Proper documentation is essential for home office deductions:

For Simplified Allowance:

Calendar or log of days worked from home
Photos of your workspace
Explanation of why you work from home

For Actual Cost Method:

Receipts for all expenses (rent, utilities, etc.)
Floor plan showing home office area
Photos of dedicated workspace
Records of business use
Calculations of business percentage

Best Practices:

Keep all receipts organized
Take photos of your workspace
Maintain a log of work-from-home days
Keep records for at least 10 years (German requirement)

Special Situations

Renting vs. Owning

If You Rent:

You can deduct a percentage of rent
Include utilities and other rental costs
Simpler than owning

If You Own:

You can depreciate a portion of your home
More complex calculations
May have capital gains implications when selling
Consult a tax advisor

Multiple Workspaces

If you work from multiple locations:

You can only claim one home office deduction
Choose the method that gives you the highest deduction
You cannot claim multiple home offices

Shared Workspace

If you share your home office with a spouse or partner:

Each person can claim their own deduction
Must be able to prove separate business use
More complex - consult a tax advisor

Tax Return Filing

When filing your tax return, home office deductions go in different sections:

Simplified Allowance:

Enter in the “Werbungskosten” section
Use line for “Homeoffice-Pauschale”
Enter total days × 6 EUR

Actual Cost Method:

Enter in “Werbungskosten” section
Break down by expense category
Include calculations and documentation

Using Tax Software:

Most German tax software (like WISO Steuer, Taxfix) includes home office sections
Guides you through the process
Helps ensure you don’t miss anything

Maximizing Your Deductions

To maximize your home office deductions:

Choose the right method: Compare simplified vs. actual costs
Keep good records: Document everything
Claim all expenses: Don’t miss deductible items
Understand the rules: Know what qualifies
Consult a tax advisor: For complex situations

Conclusion

Home office tax deductions can significantly reduce your tax burden as a freelancer in Germany. The simplified allowance makes it easy for most freelancers to claim deductions, while the actual cost method offers the potential for much higher savings for those with dedicated home offices.

The key is understanding which method works best for your situation and keeping proper documentation. Even if you only qualify for the simplified allowance, claiming 1,260 EUR per year can save you hundreds of euros in taxes.

Don’t leave money on the table - take advantage of the home office deductions you’re entitled to. With proper planning and documentation, maximizing these deductions is straightforward and well worth the effort.

Need Help?

If you have questions about home office deductions or need help with your tax return, we’re here to help. Contact us by email at support@solobooks.de, chat with us in the app, or visit our Help Center for more guides.

Last updated: January 25, 2026