In Belgium

A property company (societe civile immobiliere / patrimoniumvennootschap) is a legal entity created to hold and manage property. In Belgium, the most common forms are the SRL (societe a responsabilite limitee) and the simple partnership (societe simple).

Advantages:

  • Avoids joint ownership partition risks — shares can be transferred without selling the property
  • Gradual donation of shares to children reduces inheritance tax
  • Professional tax treatment of expenses and depreciation
  • Limited liability (for SRL)

Disadvantages:

  • Higher acquisition costs (registration duties + corporate structure costs)
  • Annual accounting and filing obligations
  • Corporate tax on rental income (instead of favourable CI-based personal taxation)
  • Benefit-in-kind taxation if the owner uses the property personally
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Good to know
A property company is not always tax-efficient. For a single investment property let to individuals, the personal CI-based taxation is often more favourable than corporate taxation of actual rent. A company structure becomes advantageous mainly for larger portfolios or when inheritance planning is a priority.

Practical example

A couple with 3 children creates an SRL to hold 4 rental apartments. They donate 20% of the shares to each child (total 60%) over several years, benefiting from reduced gift tax rates. When the parents pass away, only 40% of the company shares enter the estate, significantly reducing inheritance tax compared to direct property ownership.