An entrepreneur working from home may charge to costs part of the outlays on the flat — rent, utilities, interest on a loan or lease — in proportion to the floor area actually used in the business. Since 2023, however, the residential premises themselves can no longer be depreciated. The way of settlement depends on whether the flat is owned or rented, and on the form of taxation.
When flat outlays are a cost
The PIT Act has no separate provision on a "home office". The general rule of Article 22(1) applies: an outlay must be connected with earning revenue or maintaining its source and must not appear on the list of exclusions in Article 23. A flat serves private life and the firm at the same time, so a cost can only be the part of outlays attributable to the business.
This matters only under general rules (the tax scale) and the flat tax (podatek liniowy). On ryczałt (lump-sum tax on recorded revenue), tax is calculated on revenue, so apportioning part of the flat brings no tax saving. The differences between the forms are described in the article General rules of taxation.
How to set the proportion
The most common key is floor area: the metres used in the business divided by the total usable area of the flat. The basis should be the real use of the premises, not the wish to cut tax.
- The firm part includes the place where the work is actually done: a desk, a shelf with documentation, equipment.
- Shared rooms (kitchen, bathroom, hallway) are hard to defend as firm space, unless the business consists in receiving clients.
- The adopted proportion is worth describing in a short dated statement, with a sketch or description of the rooms and the floor area, and updated when the flat layout changes.
Example: the flat is 64 m², and the workstation with a desk and wardrobe takes up 8 m² in one room. The proportion is 8 / 64 = 12.5%.
Watch out for the property tax
The Act on local taxes and charges provides a separate, much higher rate for residential buildings or parts of them occupied for business activity. For 2026 the upper limit of the rate for residential parts is PLN 1.25 per m², and for parts occupied by business — PLN 35.53 per m² (the specific rates are set by the commune council, and the maximum amounts are indexed each year). Setting aside a whole room exclusively for the firm may therefore entail an obligation to notify the change to the commune and a higher tax. Before making the decision, it is worth checking how the commune treats such a case.
Owned flat: what can be deducted
| Expense | How to settle |
|---|---|
| Rent to the housing community or cooperative | in floor-area proportion |
| Heating, water, waste disposal | in floor-area proportion |
| Electricity | by proportion or according to actual consumption, if it can be shown |
| Internet | usually in the firm part; with a separate contract for the firm — in full |
| Interest on a mortgage loan | in proportion, in the month of payment; principal repayment is not a cost |
| Home insurance, minor repairs | in proportion, if they concern the whole premises |
| Depreciation of the premises | not allowed since 2023 |
The depreciation ban follows from Article 22c(2) of the PIT Act, which excludes from depreciation residential buildings and premises, cooperative ownership right to residential premises and the right to a single-family house in a cooperative — including where they serve the business. Furniture and equipment in the firm part can, however, be settled on general rules: as a one-off up to PLN 10,000 of value or through depreciation.
Utility invoices are usually issued to a private person. In that case, a proportionate share of the amount is entered in the book on the basis of the document and the calculation — with a joint account for spouses, it matters who actually bears the expense.
Rented flat
The tenant may charge to costs a proportionate share of the rent and the fees. There are two conditions: the lease does not forbid business activity in the premises, and the entrepreneur actually uses them for this purpose. The landlord's consent to registering the firm at the address makes it easier to defend the cost. If the landlord anyway settles most of the income as private rental, entering the firm does not change their taxation, but it is worth agreeing it with them before signing the lease.
What cannot be done is to rent one's own flat to oneself and charge the "rent" to costs — a contract requires two parties.
Example of a monthly settlement
A programmer on flat tax rents a 50 m² flat for PLN 3,200 per month, and utilities cost PLN 600. The desk and the wardrobe with documentation take up 7 m², which gives a 14% proportion.
- rent cost: PLN 3,200 × 14% = PLN 448,
- utilities cost: PLN 600 × 14% = PLN 84,
- in total PLN 532 of monthly costs, or PLN 6,384 per year.
At the 19% rate this means around PLN 1,213 of lower tax per year. The amount is not large, but under general rules or flat tax it is usually worth settling if the proportion is honestly set and documented.
Most common mistakes
- Adopting an inflated proportion (e.g. 50% of the flat with a single desk in the bedroom).
- Continuing to depreciate the flat despite the ban in force since 2023.
- Charging the entire loan instalment instead of only the interest in the firm part.
- Overlooking the property tax when a whole room is set aside.
- No document describing how the floor area was set.
How Good Balance can help
We help establish a justified proportion, prepare the statement on the use of the flat and record the outlays in the book each month. These services are covered by simplified accounting. If you are only now registering a firm with an address in a flat, we also support setting up a sole proprietorship.