The depreciation rule in Belgium
Only properties held through a company (SRL) can be depreciated. The standard rate is 3% per year (33-year schedule) on the building value (excluding land). Private individuals cannot depreciate rental properties in their PIT return. Depreciation is a non-cash deduction that significantly reduces the corporate tax base.
| Ownership | Depreciation | Tax base |
|---|---|---|
| Private individual | Not allowed | Indexed CI |
| Company (SRL) | 3%/year on building | Actual rental income - expenses |
Calculation example
Property purchased by an SRL for EUR 300,000. Land value: EUR 75,000. Building value: EUR 225,000.
| Item | Annual amount |
|---|---|
| Annual depreciation (3% of EUR 225,000) | EUR 6,750 |
| Tax saving at 20% ISOC rate | EUR 1,350/year |
| Over 33 years | EUR 44,550 saved |
The depreciation reduces the taxable profit year after year without any cash outflow, creating a significant tax shield.
Land vs building split
The land portion of a property cannot be depreciated. The split between land and building must be determined at the time of purchase and is usually based on:
- The purchase deed (if it specifies the split)
- An expert valuation
- The cadastral data
- A standard percentage (typically 20-30% for land in urban areas)
The tax authorities scrutinise the land/building split carefully. An artificially low land value to maximise depreciation may be challenged. Use a professional valuation for properties above EUR 500,000.
Component depreciation (ventilation comptable) allows faster depreciation of specific building elements: technical installations (6.67%/year), finishings (5%/year), etc. This front-loads the tax benefit.
Regional specifics
Brussels-Capital Region
No regional variation on depreciation rules, which are federal (corporate tax). Brussels registration duties (12.5%) are part of the acquisition cost that can be depreciated alongside the building.
Walloon Region
Same federal depreciation rules. Walloon registration duties (12.5%) can be added to the depreciable base. Some municipalities offer reduced property tax during major renovation works.
Flemish Region
Same federal depreciation rules. Flemish registration duties (12%) can be added to the depreciable base. Flanders does not allow depreciation of the CI for property tax purposes (separate tax).
Articles 61 to 65 CIR 92 (depreciation rules), Royal Decree of implementation art. 36 (depreciation rates) — Texts on Justel