Home office space: What do you need to pay attention to?

As an entrepreneur you will often (also) work from home. But not every entrepreneur knows about the fiscal benefits you are entitled to when you have a home office space. In this article we will explain to you what expenses are, and are not deductible when using your home office space.


Home office

Owned home constructionally divided: work and private separate

If the building you live and work in allows it, you might want to split it in a private and professional part. A structural split means that each part can be used separately. The requirement is that each part has its own sanitation facilities and entry. In addition, at least 70% of your professional activities must be performed in the office space.

If your home is structurally divided, the business part will fall under your company. Then, you can deduct the expenses and interior from your income. The private part will, of course, be taxed privately. Just as for your physical house, your administration regarding your mortgage, maintenance, interior, facilities and utilities are also fiscally divided in two separate parts.

Owned home (partly) business. What do I need to pay attention to?

If you did not divide your home and are still adding it, in part, to your balance sheet, it is good to realize you are not entitled to the mortgage deduction for the business space. Expenses such as internet and phone bills are private as well. If you label (a part of) your home as business you will need to pay taxes over the overvaluation of your home. When you decide to include your entire home to your company assets, you will need to add taxes for your private wealth regarding your profit. This is a percentage of your WOZ- or real estate value. In most cases it will not be in your benefit to label your home as a business asset.

Owned home as private asset. What is deductible? 

When you do not include your entire home as a private asset, the expenses and interior of the office space are not deductible. In reality that means that only floors, paint jobs, lighting etc. belong to the interior (and therefore private), but also tables and office chairs. Inventory that is purchased specially for the profession is not part of the interior. Examples are computers or drawing tables.

Rental home with home office space: what is deductible? 

It is possible to deduct business housing costs with rental homes under certain conditions. But then at least 10% of the home will need to be in business use for at least 90%. Working on the kitchen table does not count.

Further information

Do you want to check if you are eligible to deduct the business part of your home? You can make use of this tool by the Tax Authorities (in Dutch). Would you like to know more about the deduction of rental expenses? You can read more about that here (in Dutch).