The home office sounds like the cheapest working option — no commute, no rent, no extra costs. But the tax picture looks different: the home office flat-rate deduction is capped by law, while coworking costs can in many cases be fully deducted from taxable income. Knowing the difference leads to better decisions — not just for productivity, but for your tax return too.
The home office flat rate and its limits
Since the 2023 tax reform, the new home office flat rate (Homeoffice-Pauschale) stands at €6 per working day from home, for a maximum of 210 days per year — giving an annual ceiling of €1,260. An employee working five days a week from home without a dedicated office room gets exactly this amount recognised as deductible work-related expenses.
This is an improvement over the previous €600 ceiling — but it remains a flat rate. Those with genuinely higher costs, for example through a proportional home office room, can deduct more under strict conditions. The bar is high: the room must be used almost exclusively for work and in many cases must represent the central point of professional activity.
In practice: most employees end up at €1,260, regardless of how expensive their housing or equipment actually is.
Coworking as a business expense: the full deduction for the self-employed
A different rule applies to freelancers, the self-employed, and sole traders: coworking costs can be fully deducted as business expenses (Betriebsausgaben). Monthly membership fees, day passes, weekly packages — anything professionally motivated and properly documented reduces taxable profit.
At Innergarden, a Flex Desk starts at €220 per month — that's €2,640 per year, fully deductible. A Fix Desk runs from €299 to €419 per month, giving an annual deduction of €3,588 to €5,028. Compared to the €1,260 home office flat rate, the gap is significant.
On top of that come all directly connected secondary costs: travel, parking, meal allowances — all deductible, as long as the coworking space is not classified as your primary workplace.
What employees can claim
Employees also have tax options with coworking — provided the employer does not reimburse the costs. Coworking expenses can be claimed as work-related expenses (Werbungskosten) if they are professionally necessary and not covered by the employer.
The key distinction is with the primary workplace. If the coworking space is not classified as such — which is often the case when locations vary, or when the employer's premises are clearly the designated workplace — travel costs can be claimed under business travel rules: €0.30 per kilometre (€0.38 from the 21st kilometre).
Additionally, a daily meal allowance of €14 applies when you are away from your home for more than 8 hours. This rule can add up quickly with regular coworking use.
What you need for your tax return
The tax deduction only works with clean documentation: monthly invoices or receipts from the coworking space, ideally a membership contract, and where required a brief note establishing the professional connection.
Well-run coworking spaces provide all of this as standard. Innergarden, for example, issues monthly invoices that meet all legal requirements and hold up to tax office scrutiny.
A note: tax classification always depends on the individual case. This article gives a general overview — for a binding assessment of your specific situation, we recommend speaking with a tax adviser.
This article is for general information purposes only and does not replace individual tax advice. Please consult a tax adviser for your specific situation.
Takeaway
Coworking is not purely a lifestyle decision — it is also a financial one. A self-employed person who regularly uses a coworking space can claim a significantly larger portion of their work costs against tax than with the home office flat rate. And an employee working from home should not overlook the tax advantages of occasional coworking.
Want to know what an Innergarden membership costs — and how it stacks up financially? Visit us or take a look at our pricing.
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