In Belgium

The natural persons tax (impot des personnes physiques, or IPP) is Belgium’s personal income tax. It is a progressive tax applied to all income categories: professional income, property income, movable income and miscellaneous income.

For property owners, the IPP affects rental property through the declaration of cadastral income or actual rental income, depending on the type of letting.

The progressive tax brackets (2026) are:

  • 25% on income from 0 to 15,820 EUR
  • 40% from 15,820 to 27,920 EUR
  • 45% from 27,920 to 48,320 EUR
  • 50% above 48,320 EUR

Property income is added to other income and taxed at the owner’s marginal rate. For a salaried owner already earning above 48,320 EUR, any additional property income is effectively taxed at 50%.

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Good to know
The “natural persons tax” (IPP) and “personal income tax” (PIT) refer to the same tax. IPP is the official Belgian French term, while PIT is the common English translation.

Practical example

Claire earns 55,000 EUR/year as a salaried employee. She owns an apartment with a CI of 1,200 EUR, let to a family (private use). She declares the indexed CI (2,612 EUR) + 40% = 3,657 EUR additional income. This is taxed at her marginal rate of 50%, costing her approximately 1,828 EUR in additional IPP.

Key considerations

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Warning
Even an unlet property generates a tax obligation. The owner must declare the cadastral income of all properties they own (including second homes), whether occupied, rented or vacant.