Quick answer
Здесь свобо́дно?
zdyes svabódna — the impersonal -о form, so it works for any seat
The options
Why свобо́дно
The neuter short form свобо́дно works impersonally — “is it free here” — so you do not need to know the gender of whatever you are sitting on. With ме́сто (neuter) it agrees anyway.
The answers
Свобо́дно or Да, пожа́луйста means yes. За́нято means taken. And in a long queue or a waiting room, Я занима́ла — “I was holding it” — means someone has left a coat on it and will be back.
What you hear back
Typical mistakes
Здесь свобо́дный?
Здесь свобо́дно?
The impersonal short form ends in -о.
Мо́жно сиде́ть?
Мо́жно сесть?
сесть is the act of sitting down.
Check yourself
Which is correct?