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Working from home in Czechia: Which expenses will the tax office actually recognize?

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homeoffice czechia 2026

With rising office rental costs, more and more entrepreneurs are choosing to work from home. However, the question of "what can I claim as an expense" is under scrutiny in the case of a home office.

Are all expenses tax-deductible?

If you claim actual expenses (rather than the flat-rate), you must justify that each expense is directly related to achieving your income. For an expense to be truly deductible for a sole trader, it must meet three basic requirements:

  1. Connection to economic activity: The expense is directly related to the operation of the business for the purpose of achieving or maintaining income (e.g., a monitor for a graphic designer).
  2. Provability: You must be able to prove what you bought and that you paid for it (digital receipt + bank statement).
  3. Evidence: The expense must be properly recorded in your tax records.

Proportional key for determining costs

The main hurdle is the fact that your apartment serves both for living and for work. The tax office will not recognize 100% of the costs for rent or utilities. You must establish a so-called proportional key.

Example: If your apartment is 100 m² and your work corner or office takes up 15 m², you can claim 15% of the rent and utilities.

What can be included in tax records in 2026?

  1. Equipment: Desk, monitor, ergonomic chair, or software. Deductibility is high here if the equipment matches your profession.
  2. Utilities and internet: Internet can be claimed at a proportional rate (e.g., 50/50 private/business). For utilities, the process follows current methodologies that consider the energy performance of the workplace.
  3. Mobile plan: We recommend keeping a detailed breakdown or choosing a reasonable ratio that you are able to justify during an audit.

What to watch out for

  1. Lease agreement: If you operate in a rented apartment, the contract must allow you to do business on the premises. If the contract states "rent for residential purposes," the office may dispute the expense claim.
  2. Car flat-rate: Even if you work from home, you can use the transport flat-rate (5,000 czk per month). However, you must prove that you use the car for business, for example, for meetings with clients.
  3. 2026 revisions: Watch out for new rules for remote readings and proving heating costs for shared spaces that came into effect this year.

The line between personal cost and business expense is very thin in the case of a home office. You can consult your expenses with us to maximize savings while not risking a tax audit.

Consult your tax expenses with the experts at CATO

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