Property company vs personal ownership
In Belgium, there is no SCI as in France. The typical vehicle is an SRL (limited liability company). For a small portfolio (1-2 properties), personal ownership is usually more tax-efficient because rental income is taxed on the indexed CI (much lower than actual rent). A company is taxed on actual rent at corporate tax rates, and dividends are taxed again at 30%.
| Criterion | Personal ownership | Company (SRL) |
|---|---|---|
| Tax on rental income | CI-based (favourable) | Actual rent (ISOC 20-25%) |
| Expense deduction | Flat-rate only | All real expenses |
| Capital gains | Tax-free after 5 years | Always taxed |
| Dividends | N/A | 30% withholding tax |
| Setup cost | None | EUR 1,500-3,000 |
Tax comparison
Apartment generating EUR 12,000/year rent. CI: EUR 1,200.
Personal ownership: Tax base = indexed CI x 1.40 = EUR 3,656. Additional tax at 50% = EUR 1,828/year.
Via SRL: Taxable profit after expenses (say EUR 8,000). Corporate tax at 20% = EUR 1,600. If EUR 5,000 dividend paid, withholding tax = EUR 1,500. Total tax = EUR 3,100/year.
Personal ownership saves approximately EUR 1,272/year in this scenario.
When a company makes sense
A property company becomes worth considering when:
- Large portfolio (3+ properties): the economies of scale on accounting and management fees justify the structure
- Succession planning: company shares are easier to transfer gradually than real estate
- High personal income: if your marginal PIT rate is 50% and your actual rent is significantly higher than the CI-based tax base
- Active renovation: companies can deduct all renovation costs and depreciate the building
Transferring existing properties from personal ownership to a company triggers registration duties (12.5% in Brussels/Wallonia, 12% in Flanders) on the market value. This cost is often prohibitive.
If you plan to invest via a company from the start, purchase the property directly through the company to avoid double registration duties. Consult a tax advisor before structuring.
Regional specifics
Brussels-Capital Region
Registration duties of 12.5% apply when a company purchases a property. No abatement or reduced rate for companies. Brussels has no specific regional advantages for property companies.
Walloon Region
Registration duties of 12.5%. The reduced rate (3%) is not available for companies, only for private individuals. Wallonia offers no specific regional incentives for corporate property ownership.
Flemish Region
Registration duties of 12%. The reduced rate (1%) for first residences is not available for companies. Flanders applies specific rules on the requalification of rental income paid to company directors.
Code des societes et des associations (CSA), Articles 179 to 219 CIR 92 (corporate tax), Article 18 CIR 92 (dividend taxation) — Texts on Justel