Coworking spaces can be claimed as business expenses for tax purposes if they are business-related and are properly documented. For businesses and the self-employed, they therefore offer not only organisational flexibility but also tax benefits – provided that their use is clearly defined and traceable. What matters is not so much the concept of ‘coworking’ itself, but rather how, for what purpose and to what extent the spaces are used.
The following section outlines which tax aspects are relevant to co-working spaces, which costs may be deductible, and how professional business centre structures – such as the Collection Business Centre – can be classified for tax purposes.
Coworking costs are generally deductible as business expenses if they are incurred in the course of professional or business activities. This is also in line with the tax treatment described in professional practice and in tax guides.
The key factor here is:
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The use is not for private purposes, but for business purposes.
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The costs are clearly linked to professional activities.
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There is a valid invoice.
Unlike with a home office, no flat-rate deduction limits apply to co-working spaces. This makes them particularly attractive from a tax perspective for companies with flexible working models.
As a general rule, the ongoing running costs incurred for the co-working space are tax-deductible. These include, amongst others:
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Fees for co-working workstations
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Monthly memberships or flexible day passes
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Costs for meeting and conference rooms
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Services that form part of the usage package
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Service charges, provided they are included in the invoice
These costs are regarded as ongoing business expenses and may be taken into account when determining profit.
It is important to note that deductibility does not depend on whether or not a company also maintains its own office space. From a tax perspective, co-working can also be used to complement permanent office set-ups – for example, for project work, temporary teams or hybrid working models.
A key tax advantage of co-working spaces lies in the clear distinction between private and professional environments. Whilst a home office is subject to strict requirements, co-working spaces are regarded as places of work outside the home.
This means:
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No assessment of whether an ‘alternative workplace’ is available
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No pro-rata calculation of housing costs
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No cap, as is the case with a home office
For companies with employees working under a hybrid model in particular, co-working thus provides tax clarity and reduces the need for discussions with the tax authorities.
From a VAT perspective, too, co-working spaces are generally straightforward. If VAT is shown on the invoice, it can be claimed as input tax – provided you are entitled to deduct it.
The requirements for this are:
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A valid invoice showing VAT
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Business use of the services
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No private involvement
With professional providers, these requirements are usually met without any problems in practice, as invoicing and service descriptions are transparent.
If employees use co-working spaces on behalf of the company, the costs are also regarded as business-related. This is subject to the condition that the use is organised or authorised by the company and is not a private decision on the part of the employee.
Typical scenarios include:
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Coworking as an alternative workspace to the office
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Use for project work or temporary teams
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Use as part of hybrid working models
It is important to have clear internal guidelines setting out when and for what purpose co-working is used. This helps to avoid queries regarding tax classification.
It is not only the use itself that is relevant for tax purposes, but also the nature of the contractual arrangements. Flexible usage agreements, clearly specified services and transparent invoicing make tax treatment considerably easier.
Professional business centre providers offer advantages in this regard, as:
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Services are clearly described
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invoices are clearly structured
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business use can be plausibly demonstrated
At the Collection Business Centre, co-working forms part of a professional office and service concept, which makes the tax classification clear and consistent.
For tax purposes, co-working spaces in a business centre are not distinguished by their label, but by their functional use. If co-working is used as part of a professional working environment – supplemented by meeting rooms, reception services or temporary offices – the business purpose is clearly recognisable.
For businesses, this means:
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Coworking is not a special tax regime
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It is treated in the same way as any other rented workspace
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The flexibility does not have a negative impact on tax deductibility
The Collection Business Centre combines co-working with clear structures, which ensures transparency, particularly during tax audits.
In practice, tax issues arise less from co-working itself than from organisational ambiguities. Common mistakes include:
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missing or incomplete invoices
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private use without clear demarcation
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unclear allocation to projects or staff
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use of informal or untraceable services
Organising co-working professionally significantly reduces this risk.
Conclusion
Coworking spaces offer good tax benefits and are advantageous in many cases, provided they are clearly used for business purposes. Running costs can be claimed as business expenses, input VAT can be reclaimed, and staff can be integrated flexibly – without the restrictions of a home office.
The key is clear organisation, transparent accounting and a professional environment. Business centre solutions such as the Collection Business Centre provide a structured framework for this, combining flexibility with tax clarity. In this way, co-working becomes a valuable component of modern working concepts, not only from an organisational perspective but also from a tax perspective.