Freelancer Tax Deductions by Country

United States — Schedule C Deductions

US freelancers report income and expenses on Schedule C (Form 1040). Key deductions include:

• Home office (simplified): $5 per square foot, up to 300 sq ft ($1,500 max). Or actual expenses method: proportional share of rent/mortgage, utilities, insurance, repairs.
• Self-employment tax deduction: You can deduct 50% of your self-employment tax (7.65% of net income) from your gross income.
• Health insurance: 100% of premiums for yourself, spouse, and dependents (if not eligible for employer-sponsored coverage).
• Retirement contributions: SEP-IRA (up to 25% of net earnings, max $69,000 in 2024), Solo 401(k) ($23,000 employee + 25% employer match).
• Section 179: Immediate deduction for business equipment up to $1,220,000 (2024).
• Qualified Business Income (QBI): 20% deduction on qualified business income (Section 199A), subject to income limits.

United Kingdom — Allowable Expenses

Self-employed individuals in the UK can claim "wholly and exclusively" business expenses:

• Home office: Flat rate of GBP 6/week without receipts, or proportional actual costs (room-based calculation).
• Capital allowances: Annual Investment Allowance of GBP 1,000,000 for equipment. Small items under GBP 500 can be expensed immediately.
• Trading allowance: GBP 1,000 tax-free trading income if total is below this. Cannot combine with expense claims.
• Pension: SIPP contributions are tax-relieved at your marginal rate (20/40/45%), up to GBP 60,000/year or 100% of earnings.

Germany — Betriebsausgaben

German freelancers (Freiberufler) deduct business expenses (Betriebsausgaben) from their revenue:

• Arbeitszimmer (home office): Up to EUR 1,260/year if you have a dedicated room. Full deduction if it is the center of your professional activity.
• Werbungskostenpauschale: EUR 1,230 flat-rate deduction (already built in for employees, explicitly claimed for self-employed).
• Equipment depreciation: Items over EUR 800 must be depreciated over their useful life. Items under EUR 800 (net) can be expensed immediately.
• Rurup-Rente: Contributions deductible up to EUR 27,566 (2024) — rising to full deductibility. This is the primary retirement savings vehicle for Freiberufler.
• Health insurance: Fully deductible as Sonderausgaben (special expenses). For self-employed, this includes both employee and employer portions.
• Fahrtkosten: EUR 0.30/km for the first 20 km, EUR 0.38/km beyond that for commuting. Business trips at full cost.

France — Frais Professionnels

French freelancers have two regimes:

• Micro-entrepreneur: Flat-rate deduction based on activity type (34% for services, 50% for commercial). No itemized deductions allowed. This is simple but may result in higher tax if actual expenses exceed the flat rate.
• Regime reel: Actual expenses (frais reels) are deducted. All legitimate business expenses are allowed, including home office (proportional), equipment, professional subscriptions, insurance, and travel.
• PER (Plan d'Epargne Retraite): Retirement savings contributions deductible up to 10% of professional income (min EUR 4,399, max EUR 35,194 in 2024).

Netherlands — Zakelijke Kosten

Dutch freelancers (ZZP'ers) benefit from several specific deductions:

• Zelfstandigenaftrek: EUR 5,030 deduction for self-employed persons working at least 1,225 hours/year in their business.
• MKB-winstvrijstelling: 14% of remaining profit is exempt from tax.
• Startersaftrek: Additional EUR 2,123 deduction for the first 3 years of self-employment.
• Kleineondernemersregeling (KOR): VAT exemption for businesses with turnover under EUR 20,000.
• Lijfrente: Tax-deductible pension contributions (annuity insurance), calculated based on pension gap.
• Home office: Proportional share of housing costs if you have a dedicated workspace.

Practical Tips

• Keep every receipt. Digital copies are accepted in most countries. Use accounting software to categorize expenses automatically.
• Separate business and personal. Use a dedicated business bank account and credit card. This makes accounting cleaner and deductions easier to justify in an audit.
• Claim proportionally. For mixed-use items (phone, internet, car), only claim the business portion. Document how you calculated the split.
• Timing matters. Consider accelerating expenses into the current year if your income is higher, or deferring if you expect higher income next year.
• Depreciation vs. expensing. Understand your country's threshold for immediate expensing vs. multi-year depreciation. Sometimes it is better to spread the deduction.

Use our Freelance Tax Calculator to see how deductions affect your bottom line.