When people talk about the tax benefits of coworking for freelancers, it pays to be precise: the tax benefit lies in the fact that, when the requirements established by tax regulations are met, the coworking membership fee can be deducted as a business expense, something that, in practice, is often easier to justify than certain expenses tied to working from one’s primary residence.
This is one of the compelling reasons Nieves Ramos Sánchez-Mateos, director of Optimismus Coworking and an HR expert, has observed a striking shift among those who come to the space. “Previously, most asked only about price or flexibility. Today many arrive with another concern: they need a place to work professionally, to meet clients, to separate personal life from work, and to simplify managing their business. Coworking has stopped being just an alternative to an office; it has become a tool to better manage professional activity.”
A bill that’s easier to justify than a home office
For those who carry out their activity from their home, justifying certain expenses can become a complex process. The deduction for utilities requires applying percentages to the portion of the space used for business and meeting certain requirements set by tax regulations.
In contrast, coworking presents an obvious advantage: it is a service contracted specifically to carry out a professional activity. “What many freelancers value is not only having a good space to work. They also appreciate having a clear invoice for a professional service that is clearly identified. That provides a lot of peace of mind in day-to-day management,” explains Nieves Ramos Sánchez-Mateos.
What the regulations say
From the tax advisory firm Mega Gestión de Negocios they explain that, “when the self-employed taxpayer files taxes using direct estimation, the coworking fee can be counted as a deductible expense as long as there is a real link to the economic activity, the expense is properly supported by an invoice, and it is accurately recorded in the accounting or the corresponding books”
Additionally, “the following may form part of that expense: the monthly desk fee, office or meeting room rentals, and those services included in the coworking invoice that are linked to the development of the activity,” explain the advisory firm.
Fiscal and business address: another advantage to separating the business from personal life
More and more coworking spaces offer the option to establish the self-employed person’s or company’s fiscal, social, and commercial address at the coworking facility. In addition to projecting a more professional image to clients and suppliers, this option allows centralizing business activity at an address dedicated specifically to the business.
“We’re increasingly hearing from professionals who want to completely separate their business activity from their home. They aren’t just looking for a place to work; they want a professional address from which to develop their project, receive mail, or attend to clients. That separation brings organization, privacy, and also conveys a much stronger image,” explains Ramos Sánchez-Mateos.
From Mega Gestión de Negocios they remind that establishing the fiscal address at a coworking space does not by itself generate an additional deduction, but it can bring organizational advantages for the business. “Having a professional independent address helps to organize business documentation, centralize communications, and reinforce coherence between where the activity actually takes place and the information on file with the Administration,” they explain.
“For a long time we debated whether it was better to work from home or return to the office,” concludes Nieves Ramos Sánchez-Mateos. “I think today the question is different: which space really helps your business grow? When the environment supports you, we work better, project a more professional image, and can focus on what matters. If, in addition, that expense is easier to justify from a tax perspective, that’s an added benefit, though not the only reason.”
