The 60/40 split rule
The rent for a furnished property is split into a real estate component (60%) and a movable component (40%). The real estate part is taxed under the standard regime (CI or actual rent depending on usage). The movable part is subject to 30% withholding tax. If the lease specifies a different split, it must be justified by a valued inventory.
| Component | Percentage | Tax regime | Rate |
|---|---|---|---|
| Real estate (building) | 60% | PIT (CI or actual rent) | Marginal rate (up to 50%) |
| Movable (furniture) | 40% | Withholding tax | 30% flat |
Practical declaration
The real estate component (60%) is declared in Part III of the PIT return, following the same rules as an unfurnished rental (CI for private use, actual rent for professional use). The movable component (40%) is declared in Part VII if the withholding tax has not already been withheld at source.
Furnished apartment let for EUR 1,200/month. Real estate share: EUR 720/month (declared as for any rental). Movable share: EUR 480/month, taxed at 30% = EUR 144/month in withholding tax.
Tax optimisation
Custom split in the lease: if the furniture is modest (basic furnishings), you can agree on a lower movable share (e.g. 20/80) provided it is supported by a detailed valued inventory. This reduces the 30% withholding tax burden.
Luxury furnishings: conversely, if the property is fully equipped with high-value furniture, a higher movable share may be justified. The inventory must list each item with its value.
Without a split clause in the lease, the tax authorities apply the default 60/40 rule. This may not be advantageous if your furniture is modest. Always include a split clause supported by an inventory.
Have the inventory valued by an independent expert for higher amounts. This provides solid evidence in case of a tax audit.
Regional specifics
Brussels-Capital Region
The 60/40 rule is a federal tax provision and applies uniformly across all regions. Brussels has no additional regional requirements for furnished lettings.
Walloon Region
Same federal rules apply. Walloon landlords must ensure the lease clearly specifies the split to avoid the default 60/40 application.
Flemish Region
Same federal rules apply. In Flanders, the Flemish housing decree applies to the residential aspects, but the tax treatment of the furnished component remains federal.
Articles 7 to 13 and 17 CIR 92 (movable income), administrative circular on the 60/40 split — Texts on Justel