The General Directorate of Taxes (DGT) and the Spanish Supreme Court have provided clarity on which expenses can be deducted by self-employed individuals using their homes as offices. The new rulings focus on rent and utility bills.
According to the DGT, self-employed workers can deduct 30% of the portion of rent corresponding to the area used for professional activities. To qualify, the workspace must be clearly separated from the residential area, and the expense must be officially recorded in the accounting records and properly documented.
The Supreme Court has also confirmed the right of self-employed individuals to deduct VAT from utility bills, including electricity, water, and gas. The deductible amount must be proportional to the space used for professional purposes. As an example, the court referred to a case where an entrepreneur was allowed to deduct 50% of utility costs because the office occupied half of the house.
Tax authorities emphasize that simply declaring the existence of a home office is not enough to apply these deductions. The self-employed person must provide objective evidence of using part of the home for work. Acceptable proof includes a floor plan, rental contract, invoices in the entrepreneur’s name, photos of the workspace, and even professional correspondence.
According to the DGT, self-employed workers can deduct 30% of the portion of rent corresponding to the area used for professional activities. To qualify, the workspace must be clearly separated from the residential area, and the expense must be officially recorded in the accounting records and properly documented.
The Supreme Court has also confirmed the right of self-employed individuals to deduct VAT from utility bills, including electricity, water, and gas. The deductible amount must be proportional to the space used for professional purposes. As an example, the court referred to a case where an entrepreneur was allowed to deduct 50% of utility costs because the office occupied half of the house.
Tax authorities emphasize that simply declaring the existence of a home office is not enough to apply these deductions. The self-employed person must provide objective evidence of using part of the home for work. Acceptable proof includes a floor plan, rental contract, invoices in the entrepreneur’s name, photos of the workspace, and even professional correspondence.
