How do I know what I can deduct?
Office and building expenses 🏪 are deductible both at home and away from home (100% professional office/cabinet). In all cases, you can justify a professional activity at home (administrative work to be done after day, telecommuting, office for patients,...). This includes rent, insurance, taxes, fixtures and fittings, decoration, etc.
Energy costs are included in a separate category (water, gas, electricity, fuel oil).
🏬 Outside the home
The situation is simple if you rent or own an office or practice away from home: all your expenses are fully deductible and you have invoices to back them up.
🏡 At home
Use of space
| Individuals | Company |
Owner of your home | Deduct depreciation but tax on resale | Allocate a rent to the manager with limits to be respected (according to cadastral income) |
Tenant of your home | Deduct a % of the rent only if stipulated in the lease (very rare that the owner agrees) | Same as |
Current and occasional expenses
| Individuals | Company |
Current expenses (fire insurance, condominium fees, municipal and provincial taxes and withholding tax) | Flat-rate | Flat-rate |
Occasional expenses (small fixtures and fittings, furniture, decoration, property work or maintenance products) | On the basis of invoices (please note that these must relate to the professional part only) | On the basis of invoices (please note that invoices may only relate to business expenses) |
How do I determine the flat rate for running costs? You can't use the ONSS lump sums used for employees. Instead, simply use your actual expenses 🤓 On average, we find that among BILLY customers, the office and building flat-rate is €15/month for individuals and €40/month for companies (excluding water, gas, electricity and heating oil).
How do I determine the professional %? All you have to do is prorate the professional surface area against the total surface area, including common rooms (e.g. toilets). If you're still living with your parents, in a shared apartment or simply don't have a room dedicated to your business, contact your BILLY advisor to assess the percentage together.
To find out more
Rent deduction : you rent a property dedicated entirely (see 1. above) or partially (see 2. above) to your business. It is rare for private landlords to agree to the deduction of business rents, as their taxation would increase significantly. On the other hand, if the owner of the building is a company, its taxation is not affected by the type of rental (private home or professional occupation).
Individual owner: the depreciation allowance is restricted by the depreciation period (20 to 33 years) and the % professional. In addition, capital gains on resale will be taxed. The benefits of doing so may be limited! If your company owns the building, there's no question about it: depreciation will be deducted!
If your company owns a building housing your home and practice/office: your company deducts the depreciation of the asset and records a benefit in kind for you. This replaces the rent you would have to pay your company. This situation is not ideal, as it involves a confusion of assets and liabilities. It is also not very popular with the tax authorities.
💡 The professional ratio is calculated by considering the surface area of the professional space in relation to the total space. Take measurements and keep detailed records of your calculations. In the event of an inspection, the authorities may come and check on site.