Yes, co-working costs are generally tax-deductible – provided they are business-related. For the self-employed, freelancers and companies, they are usually regarded as business expenses. The key factor is that there must be a clear professional purpose and that the costs can be properly documented. However, depending on the booking model (flex desk, fixed desk, team office), the tax classifications differ in detail.
Yes. Rent for co-working spaces, a proportionate share of service charges, meeting rooms and additional services are generally deductible as business expenses if they are used for business purposes. This is subject to the provision of a valid invoice and a clear business justification.
In tax law, the principle applies that costs are deductible if they are incurred for business purposes. Coworking fees are classified as ongoing business expenses when used for professional purposes.
These typically include:
Monthly fees for flex desks or fixed desks
Rent for team offices
Additional costs for meeting rooms
Pro-rata service charges
Service charges
These expenses reduce taxable profit.
For the self-employed and freelancers, the classification is usually clear-cut: if the co-working space is used for professional purposes, the costs are regarded as business expenses.
Employees, on the other hand, can only claim co-working costs to a limited extent – for example, as income-related expenses if the employer does not provide access to such a space and its use is absolutely essential for work. Stricter conditions apply here.
This article therefore relates primarily to the self-employed and businesses.
Tax treatment may vary depending on the model.
Flexdesk: Here, no fixed workstation is rented; instead, it is used on a flexible basis. The fees are treated as ongoing business expenses.
Fixdesk: A permanently reserved workspace is also generally treated as a business expense.
Private office: If you rent your own office within a co-working space, this is usually treated for tax purposes in the same way as a traditional office rental. Here too, the rental costs are fully deductible.
It is not the model that matters, but the business use.
If the co-working provider shows VAT on their invoices, businesses eligible for input tax deduction may claim this as input tax.
Requirements:
a valid invoice
VAT shown on the invoice
business use
However, businesses subject to the small business scheme cannot claim input VAT.
A common comparison is with a home office. This is subject to strict tax regulations.
Coworking spaces must be clearly distinguished from this:
They are not regarded as part of a private home.
The restrictions that apply to a home office do not apply to them.
The costs are generally fully tax-deductible, provided they are business-related.
This often makes co-working less complicated from a tax perspective than working from home.
Many co-working spaces offer additional services such as:
Reception service
Postal collection
Use of meeting rooms
Printing and scanning services
These services are also generally business-related and are therefore deductible as business expenses, provided they are used for business purposes.
Anyone who uses a co-working space can claim the cost of travel there for tax purposes.
The usual rules apply to the self-employed:
Mileage allowance when using your own vehicle
actual costs, provided appropriate evidence is supplied
It is important to keep clear records of the business-related nature of the journey.
Some co-working contracts include longer terms or require advance payments. For tax purposes, these are generally treated on an accrual basis.
This means:
Ongoing monthly fees are recognised as an expense in the relevant month.
Advance payments can be allocated pro rata over the period of use.
It is advisable to consult your tax adviser on this matter, particularly where larger sums are involved.
In practice, the following problems frequently arise:
lack of proper invoices
shared private use without clear separation
incorrect accounting (e.g. recorded as a private expense)
lack of documentation for travel expenses
Accurate bookkeeping is crucial.
If the co-working space is also used as a business address, these costs may also be business-related. It is important that there is genuine business use of the space.
A purely formal registration without any actual use may give rise to tax issues.
Coworking offers tax benefits, particularly during the start-up phase or for growing businesses:
no need for large investments in furniture
no depreciation on major fixtures and fittings
no long-term tie-up of capital
Instead of high start-up costs, there are ongoing operating expenses, which directly reduce profits.
In professional business centre set-ups such as the COLLECTION Business Centre, companies receive properly issued invoices, clearly defined service components and transparent contract models.
This simplifies:
tax classification
input tax deduction
accurate bookkeeping
operational documentation
This provides additional certainty, particularly for start-ups or growing businesses.
In addition, contracts, service specifications and payment receipts should be archived in full so that transparent evidence can be produced at any time in the event of a tax audit.
Conclusion
Coworking costs are generally tax-deductible, provided they are business-related and properly documented. Flexdesk, Fixdesk or a private office within a coworking space are generally regarded as ongoing business expenses. Additional services may also be deductible.
The key factors are clear business use, proper invoices and accurate bookkeeping. In professional business centre set-ups such as the COLLECTION Business Centre, these requirements can be met with ease, enabling businesses to work flexibly whilst maintaining a structured approach to tax compliance.