Can I take the home office deduction if I work remotely from a foreign rental apartment?
Yes. If you are self-employed and living in a foreign rental, you can claim the home office deduction on your U.S. tax return as long as the space is used regularly and exclusively for business and is your principal place of business. The deduction is available under both the simplified and actual-expense methods.
The two calculation methods:
| Method | How it works | Max deduction |
| Simplified | $5 per sq ft of qualified space | 300 sq ft = $1,500 |
| Actual expense | Business-use % of rent, utilities, internet, insurance, maintenance | No cap (Form 8829) |
The actual-expense method almost always produces a larger deduction for expats in higher-rent cities like London, Paris, Singapore, or Dubai. To calculate the business-use percentage, divide the square footage of the exclusive work area by the total apartment square footage.
Important rules for expats:
- The space must be used exclusively for business. A kitchen table used for work and dinner does not qualify.
- Regular use means on a continuing basis, not occasional
- Employees (W-2 workers) cannot claim the home office deduction through 2025 under the TCJA suspension
- The deduction is not available if you use the Foreign Earned Income Exclusion on the same income (the FEIE already excluded the gross earnings)
- Convert rent and utility amounts to U.S. dollars using a consistent exchange rate method
You claim it on Schedule C (sole proprietors), with Form 8829 attached, using the actual-expense method.
For guidance on stacking deductions with the FEIE or FTC, see our self-employed expat deductions guide.
Last updated on April 29, 2026
