How does the home office deduction work in Germany?

Germany offers two ways to claim home office costs as Werbungskosten:

Tagespauschale (daily flat rate): From 2023, you can claim €6 per home office day, up to 210 days per year, for a maximum of €1,260 per year. You do not need a dedicated room; any location where you work at home qualifies. This is the simpler option and works for most remote workers.

Arbeitszimmer (dedicated room): If you have a separate room used exclusively and primarily for work, you can deduct its actual costs in full. This includes a proportional share of rent, utilities, insurance, and furnishing costs based on the room's floor area relative to the total apartment. Since 2023, the deduction is limited to the lower of actual costs or €1,250 per year, unless the home office is the primary place of work with no other available workspace.

If your employer provides you with a separate office that you can always use but you choose to work from home instead, you are limited to the Tagespauschale. The full Arbeitszimmer deduction is for people who genuinely have no other permanent workplace. You cannot claim both the Tagespauschale and the Arbeitszimmer deduction for the same day.