In Belgium

The deductibility of property expenses in Belgium depends primarily on whether the property is let to an individual for private use or to a company/for professional use.

Private letting (most common case). When a property is let to an individual for private use, the owner declares the indexed cadastral income increased by 40%. A flat-rate deduction is already built into the CI calculation — the owner cannot deduct actual expenses on top.

Professional letting. When a property is let for professional use (to a company or self-employed person), the owner declares the actual rent received. In this case, actual expenses can be deducted, including maintenance, repairs, insurance premiums and depreciation.

Mortgage interest. Interest on a mortgage for the purchase, construction or renovation of a property remains deductible under certain conditions, regardless of the type of letting.

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Good to know
For most Belgian landlords (letting to individuals for private use), the question of deductible expenses is moot: the flat-rate system based on cadastral income applies automatically. Actual expense deduction only becomes relevant for professional lettings.

Practical example

Pierre owns two apartments. Apartment A is let to a family (private use): he declares the indexed CI + 40% and cannot deduct his 2,000 EUR roof repair. Apartment B is let to a law firm (professional use): he declares the actual rent of 14,400 EUR/year and deducts the repair, insurance and depreciation, reducing his taxable rental income significantly.

Key considerations

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Warning
Keep all invoices and proof of payment for at least 7 years. The tax authorities can request documentation for any deducted expense during an audit. Undocumented deductions will be rejected and penalties may apply.