Furnished vs unfurnished lease in Belgium: what are the differences?

Furnished or unfurnished: how to tell the difference

In Belgium, a property is considered furnished when it contains enough furniture and equipment to allow the tenant to live in it immediately without bringing their own furniture. There is no exhaustive legal list, but in practice, a furnished property must at minimum contain: bed, table, chairs, wardrobe, kitchen equipment (hob, fridge, utensils) and lighting.

The distinction is important because it affects the legal regime, taxation and practical obligations of both parties.

Furnished lettings are particularly common in major Belgian cities (Brussels, Antwerp, Ghent) where demand comes from expats, students and mobile professionals. They represent approximately 15 to 20% of the rental market in these areas.

Legal differences

Lease regime

In Belgium, the furnished primary residence lease is subject to the same regional legislation as the unfurnished lease. It can be short term (1 to 3 years) or long term (9 years). Notice, renewal and termination rules are identical.

The only exception is short-term furnished letting aimed at transient visitors (tourists, professionals on short assignments), which falls under tourist accommodation legislation rather than residential lease law.

The furniture inventory

The inventory is the centrepiece of the furnished lease. It must be:

• Detailed: each piece of furniture and equipment listed individually
• Descriptive: condition of each item (new, good condition, worn, stained)
• Signed by both parties
• Attached to the lease and to the entry property inventory

Furniture maintenance and replacement

The landlord is responsible for replacing furniture in case of normal wear. The tenant is responsible for damage due to abnormal use or negligence. The distinction between normal wear and damage is made by comparison with the initial inventory.

Tax impact: the major difference

It is on the tax front that the furnished/unfurnished distinction is most significant in Belgium.

Unfurnished letting (standard lease)

Property income is taxed on the basis of the indexed cadastral income increased by 40%, not on the actual rent received. This is a considerable advantage when the actual rent is well above the cadastral income, which is almost always the case.

Furnished letting

If the lease apportions the rent between the property portion and the movable portion:

• Property portion: taxed on the indexed cadastral income + 40% (same as unfurnished)
• Movable portion: taxed as investment income at a rate of 30%, after deduction of a flat-rate 50% for expenses

The effective rate on the movable portion is therefore 15% of the gross amount (30% x 50%). If the lease does not apportion, the tax authorities can set the split themselves, often to the landlord’s disadvantage.

Worked example

For a furnished flat let at 1,000 EUR/month with an 80/20 split:

Compare this with an unfurnished lease at 800 EUR/month where only the indexed CI is taxed: the tax would be ~1,400 EUR. The movable portion thus generates moderate additional tax (360 EUR) for additional income of 2,400 EUR/year.

Practical aspects

Rent: how much more for furnished?

A furnished property typically rents for 15 to 30% more than an equivalent unfurnished property. The gap depends on furniture quality, location and target audience.

Insurance

The landlord must insure the furniture provided against fire, theft and damage. The tenant is only responsible for damage they cause themselves. In practice, the landlord adds a “contents” extension to their fire insurance.

Tenant turnover

Furnished letting attracts a more mobile audience: expats on 1 to 3-year assignments, students, professionals in transition. Turnover is therefore more frequent, which implies:

• More property inventories (entry/exit)
• More furniture wear
• More refurbishment between tenants
• More potential vacancy periods

Furniture maintenance

Plan a budget for furniture maintenance and replacement. A sofa has a lifespan of 5 to 7 years in a rental, a mattress 5 years, appliances 8 to 10 years. These costs must be factored into the profitability calculation.

How to choose between furnished and unfurnished

Furnished is suitable if:

• Your property is located in an area with strong demand from expats or students
• You are looking for higher rent and accept more active management
• You are prepared to invest in quality furniture and renew it regularly
• You target short to medium-term leases (1 to 3 years)

Unfurnished is suitable if:

• You are looking for stable long-term tenants
• You want to minimise management (no furniture to maintain)
• Your property is in an area where demand is primarily from families
• You prefer tax simplicity

Whatever your choice, formalise everything in a clear and detailed lease agreement, with a precise inventory for furnished properties. A rental management software will help you track inventories, charges and deadlines centrally.