If you are registered as self-employed in Spain and, use a room in your home as an office, you may be entitled to claim certain costs as an expense on your tax returns.
How much can I claim?
As a general rule for claiming home office expenses, you would need to calculate the proportion of your home in which you use to carry out your business activities. Note that the Tax Office only allows you to claim up to a certain proportion of your home expenditure as a business expense.
As with all business expenses, you must keep a record of any bills and have documental proof to support the claim if investigated by the Spanish Tax Office.
You can deduct part of your rental expenditure that relates to your business activity. For example, if your home office takes up 20% of the total surface area of the property, then the proportion of your rent which is deductible is 20%.
Can I claim part of my mortgage as an expense?
No, you cannot claim your mortgage interest payments as an autónomo expense. However, in your annual income tax return (Renta) you can claim an income tax credit for mortgage interest payments made on properties purchased before 2013 only. Read more on tax credits here.
You can deduct 30% of your utility expenditure that relates to your business activity at home. Utilities that can be included are dependant on whether or not they are used for business purposes, This could include your water, gas, and electricity bills.
Calculating the percentage you can claim for utilities
If you have established that 20% (of the total surface area) of your home is used for business purposes, then the deductible proportion of your bill is calculated as:
0.3 x 0.2 = 0.06
This means that only 6% of your utility bill is deductible as an autónomo expense.
Something worth considering…
One potential problem with claiming these deductions for using your home office is that in any inspection, the Tax Office could ask to see a separate rental contract in the name of your business for the part of the property that is to be used by your business.
Rental Contracts and IVA
Standard rental contracts in Spain usually state that the property is not to be used for business purposes and therefore IVA is not charged. However, if the rental contract needs to be adjusted to include business use, the rent may need to be split into two so that the property owner charges IVA on the part of the property used for business.