Renting a garage or parking space in Belgium: rules and taxation
Renting a garage or parking space in Belgium: type of contract, taxation, VAT and legal obligations. Complete guide for landlords.
354days ago
!What changes
- 1Garage rental is governed by general law (not the primary residence lease)
- 2Registration is not mandatory if the garage is rented with the dwelling (single lease)
- 321% VAT applies if the garage is rented separately in an organised car park (>2 spaces)
- 4Income is taxed on the indexed cadastral income if rented to a natural person, on the actual rent if rented to a company
- 5Property tax is due on garages (separate cadastral income or included in the building's CI)
Legal framework for garage rental
Renting a garage or parking space in Belgium does not fall under the primary residence lease. It is a general law lease governed by the Civil Code (articles 1714 et seq.).
In concrete terms, this means:
- No minimum legal duration
- No legal notice period (must be specified in the contract)
- No automatic extension
- No specific tenant protection
- Registration not mandatory (except for leases > 3 years)
This is a very flexible regime that allows the landlord to freely set the conditions. But this freedom means everything must be specified in the contract: duration, notice period, charges, insurance, permitted use.
If the garage is rented with the dwelling under a single lease, the primary residence lease regime applies to the whole (including the garage). If the garage is rented separately, general law applies.
Applicable lease type
Two distinct situations:
| Situation | Applicable regime | Registration | VAT |
|---|---|---|---|
| Garage rented with the dwelling (single lease) | Primary residence lease | Mandatory (with the lease) | Exempt |
| Garage rented separately | General law lease | Optional (< 3 years) | 21% if organised car park |
The distinction is crucial for VAT. If you rent a flat and a garage to the same tenant, opt for a single lease: it is simpler and VAT-exempt.
If you rent the garage to a different tenant or without an associated dwelling, the general law lease applies. Include the essential clauses: duration, rent, charges, notice period, permitted use (vehicle only or storage allowed), insurance.
VAT: when does it apply?
21% VAT applies to garage rental under the following conditions:
- The garage is rented separately from the dwelling
- The garage is part of an organised car park (more than 2 spaces in the same location)
- The landlord provides a fitted space (markings, barrier, lighting)
Exceptions (no VAT):
- Garage rented with the dwelling under a single lease
- Isolated garage (not in an organised car park)
- Rental between individuals of a single space
If your garage rental income exceeds 25,000 EUR/year, you must register as a VAT taxable person with FPS Finance. Below that, the small enterprise exemption applies.
For broader tax questions, see the taxation of rental income.
Taxation of garage rental income
| Situation | Taxation |
|---|---|
| Tenant = natural person | Indexed CI x 1.40 (cadastral flat rate) |
| Tenant = company | Actual rent (more favourable if rent is low) |
| Property tax | Due annually (garage CI) |
| VAT (if applicable) | 21% collected, deductible on investments |
The owner of a garage rented to a natural person is taxed on the indexed cadastral income, not on the actual rent. This is often advantageous since the cadastral income of a garage is generally very low (50-200 EUR).
If the tenant is a company, the landlord is taxed on the actual rent received. This is an important difference to bear in mind. Property tax also applies to garages.
Yield and opportunities
Garage rental is a niche investment with an attractive yield:
| Area | Average purchase price | Average monthly rent | Gross yield |
|---|---|---|---|
| Brussels centre | 25,000 - 35,000 EUR | 100 - 150 EUR | 5 - 6% |
| Brussels outskirts | 15,000 - 25,000 EUR | 80 - 120 EUR | 6 - 7% |
| Major Flemish cities | 20,000 - 30,000 EUR | 80 - 120 EUR | 5 - 6% |
| Walloon towns | 10,000 - 20,000 EUR | 60 - 90 EUR | 6 - 8% |
Advantages: low entry price, no renovation works, no complex property inventory, minimal management. Disadvantages: limited capital gain, no mortgage interest deduction. The yield is comparable to standard rental but with less management.
Practical advice
- Opt for a single lease if you rent garage + dwelling to the same tenant (avoids VAT)
- Draft a written contract even for a garage: duration, rent, notice, use, insurance
- Check VAT: if you rent several garages separately, you may need to register
- Declare income correctly depending on the tenant’s profile (natural person vs company)
- Arrange insurance: the garage owner is responsible for the structure, the tenant for their vehicle
- Prohibit storage of hazardous materials in the contract (flammable, chemical)
For residential properties, our online lease creation tool generates a compliant contract. Renting land and cellars/attics follows specific rules.
Frequently asked questions
-
If the garage is rented with the dwelling under a single lease, registering the main lease suffices. If the garage is rented separately, registration is recommended but not mandatory for leases under 3 years.
-
Yes, if the garage is rented separately (not with a dwelling) and is part of an organised car park of more than 2 spaces. The rate is 21%. If the garage is rented with the dwelling, it is VAT-exempt.
-
The gross yield on a garage is 5 to 8% depending on location (low purchase price, modest rent). In Brussels, a parking space rents for between 80 and 150 EUR/month for a purchase price of 15,000 to 35,000 EUR.
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