Property SRL in Belgium: tax advantages and profitability threshold

The property SRL: what are we talking about

In Belgium, there is no “SCI” (societe civile immobiliere) as in France. The Belgian equivalent for holding rental properties in a company is the SRL (societe a responsabilite limitee), formerly SPRL. Since the 2019 Companies Code reform, the SRL is the standard company form for small and medium-sized businesses, including property investment.

The idea is simple: instead of holding your rental properties in your own name (natural person), you buy and manage them through an SRL. The SRL collects the rent, pays the charges and is taxed separately under corporate tax (ISOC) instead of personal income tax (PIT).

Tax advantages of the SRL

Reduced tax rate

The reduced SME rate of 20% on the first 100,000 EUR of profit is significantly lower than the marginal PIT rate of 50% (applicable from 46,440 EUR of income in 2026). For a landlord whose combined income (salary + property) exceeds this bracket, the saving is substantial.

Expanded deductible charges

This is the major advantage. In an SRL, all charges related to the property activity are deductible:

Depreciation

In an SRL, the building (excluding land) is depreciable over 33 years (3% per year). Land is not depreciable. The land/building split is generally 20-30% for land and 70-80% for the building, depending on location. This depreciation significantly reduces taxable profit.

For a full overview of rental income taxation, see our complete tax guide.

Disadvantages and constraints

Minimum director’s remuneration

To benefit from the reduced SME rate of 20%, the SRL must pay its director a minimum remuneration of 45,000 EUR. This remuneration is taxed under PIT in the director’s hands. If the SRL does not generate enough income to pay this remuneration, the reduced rate is lost.

Exit taxation

Profits accumulated in the SRL are taxed on exit:

• Dividends: 30% withholding tax (or 15% after 5 years via VVPR-bis)
• Liquidation: tax on the liquidation surplus (30% or 15% VVPR-bis)
• Capital gain on resale: taxed under ISOC (20 or 25%)

Running costs

• Accountant: 2,000 to 4,000 EUR/year
• Publication of annual accounts: approximately 70 EUR
• Formation costs (notary, registry): 1,500 to 3,000 EUR

Profitability threshold

Typical simulation

Take a landlord with a marginal PIT rate of 50% and a portfolio of 4 properties generating 36,000 EUR in annual net rents:

In this example, the SRL is not yet advantageous. But as soon as rental income increases (5th property) or significant works are planned, the tipping point occurs.

Decisive variables

• Landlord’s marginal PIT rate
• Amount of loan interest
• Planned renovation works (depreciable in SRL)
• Investment horizon (the longer, the more advantageous the SRL)
• Exit strategy (reinvestment vs distribution)

Formation and verdict

Formation steps

1. Drafting of articles of association by a notary
2. Filing of the financial plan (mandatory)
3. Capital contribution (minimum 1 EUR, but the financial plan must demonstrate sufficient funds)
4. Publication in the Belgian Official Gazette
5. Registration with the Crossroads Bank for Enterprises
6. VAT number activation (if necessary)

The verdict

The property SRL is a powerful tool but not suited to all profiles. It is advantageous if:

• You have at least 4-5 properties (or a significant property portfolio)
• Your marginal PIT rate is 45-50%
• You plan significant renovation works
• You wish to reinvest profits into new properties
• Your horizon is long term (10+ years)

It is not advantageous if you manage 1-2 properties, if you want free access to rents (dividends are taxed) or if your marginal rate is low. Always run a detailed simulation with a specialist accountant before making this decision. And to know all your landlord obligations, whatever the format chosen, see our dedicated guide.