In Belgium

Depreciation of property in Belgium is primarily a mechanism for companies and self-employed persons who hold property as a business asset. For individuals letting property for private residential use, depreciation is not applicable — the flat-rate system based on cadastral income applies instead.

When applicable, depreciation allows the owner to deduct a fraction of the building’s value each year from their taxable income, reflecting the property’s gradual loss of value through wear and tear.

How it works

Building vs land. Only the building itself can be depreciated, not the land. The split is typically 70-80% building / 20-30% land, depending on location and property type.

Rate. The standard depreciation rate for residential buildings is 3% per year on the building portion. A property valued at 200,000 EUR (building only) would generate a 6,000 EUR annual deduction.

Duration. At 3% per year, full depreciation takes approximately 33 years.

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Good to know
Depreciation reduces the tax base but also reduces the acquisition value used for calculating capital gains on resale. A heavily depreciated property may trigger a larger taxable gain when sold.

Practical example

A company buys an apartment for 300,000 EUR. The land is valued at 80,000 EUR and the building at 220,000 EUR. Annual depreciation: 220,000 x 3% = 6,600 EUR deducted from corporate taxable income each year.

Key considerations

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Warning
Individuals who claim depreciation on a property held in their private assets risk reclassification of their rental activity as professional income by the tax authorities, with significantly higher tax rates.