Working from home in Germany comes with tax deductions that most employed people do not fully use. Here is how the system works and what you can actually claim.
The Homeoffice-Pauschale
Since 2023, Germany has a simplified Homeoffice-Pauschale (home office flat rate): €6 per day worked from home, up to a maximum of €1,260 per year (210 days). This is a flat-rate deduction with no requirement to prove you have a dedicated home office room — any work from home counts, including from a kitchen table. You claim it in your Steuererklärung (tax return) under Werbungskosten (work-related expenses). If you pay income tax in Germany, this deduction reduces your taxable income. For someone in the 35% tax bracket, claiming the full €1,260 reduces your tax bill by €441.
The Arbeitszimmer Deduction (Dedicated Office Room)
If you have a dedicated room used exclusively and predominantly for work (Häusliches Arbeitszimmer), you can deduct a proportional share of your rent and household costs. Formula: (office room m² / total apartment m²) × annual rent + heating + electricity. For a 10m² office in a 60m² apartment paying €1,500/month rent: approximately (10/60) × €18,000 = €3,000/year deductible, plus proportional utilities. Requirements: the room must be predominantly used for work (generally interpreted as more than 50% work use); it must be a separate room, not a shared living space; and you must be required to work from home by your employer or have no alternative workspace.
Equipment and Technology
Work equipment bought for home office use is deductible: computer and peripherals (if used more than 90% for work, fully deductible in the purchase year; if mixed use, deductible proportionally), desk and office chair (if used exclusively or predominantly for work), ergonomic equipment, work software, and work-related internet subscription (proportional if shared with personal use). Keep receipts. For equipment over €800 net purchase price, depreciation over the useful life applies rather than full deduction in year of purchase.
Who Benefits Most
The Homeoffice-Pauschale benefits anyone who works from home more than a few days per year and files a Steuererklärung. The full €1,260 requires 210 days of home office work — achievable for hybrid workers. The Arbeitszimmer deduction benefits people with a dedicated office room in high-rent cities (Munich, Frankfurt) where the proportional rent deduction significantly exceeds the flat rate. Running the comparison: if (proportional rent × 35% tax rate) > €441, the Arbeitszimmer deduction wins. Most people in Munich with a dedicated room are in this situation.
