Thus, living space used by the taxpayer for professional purposes outside of their main residence can only be considered for tax purposes (as business expenses or income-related expenses) if it is absolutely necessary for the exercise of their profession. Such necessity is deemed to exist when a significant portion of the working time is spent in this room, and when the use of the workspace is not merely occasional or dispensable.
In addition, the room in question must be used exclusively or almost exclusively for professional purposes.
In contrast, for home offices located within the taxpayer’s residence to qualify for tax deduction, they must also constitute the center of the taxpayer’s business or professional activity.
Therefore, according to the VwGH’s jurisprudence, the deductibility of home offices is subject to strict requirements and must always be assessed on a case-by-case basis.
VwGH ruling of 16.11.2023, Ra 2023/15/0047
