Renting a property held in usufruct or bare ownership in Belgium
How to rent a dismembered property (usufruct/bare ownership) in Belgium. Who signs the lease, who receives the rent, taxation and rights of each party.
Split ownership (usufruct and bare ownership)
Split ownership separates property rights into two:
- Usufruct: right to use and enjoy the property (live in it, rent it out, collect the rent)
- Bare ownership: right to dispose of the property (sell, bequeath) but without enjoying it
Split ownership is common in Belgium after a death (the surviving spouse receives the usufruct, the children the bare ownership) or as part of succession planning.
For Monique, the usufruct gives her the right to rent the property and collect the rent without consulting her children (for a standard lease of max 9 years).
| Right | Usufructuary (Monique) | Bare owners (children) |
|---|---|---|
| Sign a lease (max 9 years) | Yes (alone) | No |
| Sign a lease (> 9 years) | With bare owners’ agreement | Agreement required |
| Collect rent | Yes (100%) | No |
| Day-to-day management | Yes | No |
| Sell the property | No (unless agreed) | No (unless usufruct ends) |
It is the usufructuary who signs the lease, manages the relationship with the tenant, collects the rent and assumes the lessor’s obligations. The bare owner only intervenes for major repairs and leases of more than 9 years.
The lease under usufruct
Lease of max 9 years
The usufructuary can sign alone a primary residence lease of 9 years maximum (or a short-term lease).
The lease is valid as long as the usufruct lasts. If the usufruct ends (death of the usufructuary), the lease continues and the bare owner (now full owner) must honour it.
Lease of more than 9 years
For a lease of more than 9 years, the bare owner’s agreement is mandatory (article 3.140 of the Civil Code). Without this agreement, the lease is unenforceable against the bare owner upon extinction of the usufruct.
End of usufruct
Upon extinction of the usufruct (death of Monique), the bare owner becomes full owner. The lease continues if its remaining duration is less than 9 years. Beyond that, the lease is only enforceable for the remaining duration of the current triennial period.
Allocation of charges and works
The new Civil Code (2021)
Article 3.153 of the Belgian Civil Code (in force since 1 September 2021) clarifies the allocation:
| Type of expense | Borne by | Examples |
|---|---|---|
| Routine maintenance | Usufructuary | Painting, minor repairs, cleaning |
| Major repairs | Bare owner | Roof, facade, structure, pipes |
| Property tax | Usufructuary | Annual tax |
| Landlord insurance | Usufructuary | Annual premium |
| Service charges (provisions) | Tenant -> usufructuary | Water, electricity, common maintenance |
Disputes between usufructuary and bare owner
Disputes are frequent over the classification of “major repair” vs “routine maintenance”. In case of disagreement, the justice of the peace decides.
See our guide on works and maintenance in rentals.
Taxation of a rented split-ownership property
Rental income
It is the usufructuary who declares the rental income in their tax return. The bare owner declares nothing as long as the usufruct lasts.
| Tenant | Tax base | Who declares |
|---|---|---|
| Private individual | Indexed cadastral income x 1.40 | Usufructuary |
| Company/ASBL | Actual rent - 40% flat rate | Usufructuary |
Property tax
The property tax is due by the usufructuary (article 251 CIR/92). The bare owner is not liable.
Succession planning
Split ownership is often used in succession planning: the parents keep the usufruct (and the income) while the children receive the bare ownership (without inheritance tax on the full ownership upon death). See our guide on the taxation of property succession.
To create a lease as usufructuary, use our online lease generator. A rental management software centralises management. For other cases, see our case studies.