Depreciation of Buildings and Premises

Depreciation of buildings differs from depreciation of other business assets. If you use part of your own property as, for example, a home office, it can be partially depreciated if certain conditions are met. However, Belastingdienst is very strict about when this is allowed and how it should be documented:

• The office must be a separate room — with its own entrance, bathroom, and not used for private purposes — essentially a "self-contained part" of the house.
• It must be used exclusively for business — not as a guest room, not as a "part-time" home office.
• It must have economic independence — Belastingdienst checks whether this part could be rented out separately.

If the conditions are met — depreciate using the formula: Annual depreciation = (A−G−R) / D where: A — the portion of the property value attributable to the office (e.g., 12 m² out of 120 m² = 10%) G — the land value portion (not depreciable) R — the residual value D — the useful life (typically 30–50 years)

The bodemwaarde must be taken into account — the minimum value to which depreciation is allowed (from 2024 = WOZ-waarde).

If the office does not meet the depreciation criteria, you can still:

• deduct a portion of maintenance costs (heating, electricity, internet)
• deduct expenses for furniture, office equipment, renovations
• classify it as "kosten voor gemengd gebruik" — mixed-use expenses

Rented premises are not depreciated, depreciation only applies to assets owned by the business. But it is possible to deduct rental costs:

• monthly rent,
• utilities, if included,
• cleaning expenses, security, internet,
• furniture, equipment, lighting — if purchased by you,
• repairs or modifications — if not compensated by the landlord

Costs for capital improvements in long-term leases (e.g., installing partitions, plumbing) can be:

• either written off immediately (if under €450)
• or depreciated as an intangible asset if it is a significant investment.