In Belgium, rental income from a property let to an individual is not taxed on the actual rent received. Taxation is based on the indexed cadastral income (CI) increased by 40%. This amount is added to other income and taxed at the marginal PIT rate.
The situation differs if the tenant uses the property for professional purposes or if it is let to a company — in that case, the actual rent is used.
Key figure — A property with a CI of €1,500 generates a taxable income of 1,500 × 2.1016 (2026 index) × 1.40 = €4,414 — regardless of the actual rent received.
Articles in this chapter
- Tax return — Step by step in Tax-on-web · 8 min
- Rental income — CI vs actual rent, tax base · 6 min
- Complete PIT guide — All codes, all situations · 12 min
- PIT and rental income — Interaction between PIT and property income · 5 min
- Furnished letting — Movable income, 30% withholding · 6 min
- Letting to a company — Actual rent, benefit in kind · 7 min
- Non-residents — Taxation for overseas owners · 5 min
For an individual letting to another individual, there are no actual expense deductions — taxation on the CI already includes a flat-rate charge allowance. However, mortgage interest remains deductible under certain conditions.
Note — If the property is let to a company, the owner is taxed on the actual rent (less a 40% flat-rate allowance, capped). The difference in taxation can be substantial.
Articles in this chapter
- Owner deductions — Overview of deductions · 6 min
- Deductible expenses — Complete list with examples · 8 min
- Actual vs flat-rate — Numerical comparison of both systems · 5 min
- Mortgage interest — Conditions and caps · 5 min
- Depreciation — Rules for individuals and companies · 6 min
- Depreciation: allowed? — Case by case, personal vs corporate · 4 min
The withholding tax on immovable property is an annual tax based on the CI. It varies significantly by region and municipality — from 20% to over 50% of the CI. The cadastral income is the basis for both the withholding tax and the taxation of rental income.
Articles in this chapter
- Indexed cadastral income — Calculation, coefficient and purpose · 5 min
- Withholding tax exemption — Conditions and procedure · 4 min
- Reduction for dependants — Amounts by region and conditions · 4 min
- Withholding tax & income — Link between both taxes · 5 min
- Notary fees — Registration duties and fees · 6 min
Belgium is one of the few countries where capital gains on property are not taxed for individuals — provided the property has been held for more than 5 years. If resold within 5 years, a 16.5% tax applies.
Good to know — For undeveloped land, the period is 8 years and the tax rate is 33%.
Articles in this chapter
- Capital gains — General rules and exceptions · 7 min
- Calculation & taxation — Formula, 16.5% and 33% rates · 6 min
- Donation and lease — Impact on the ongoing lease · 5 min
- Inheritance — Tax obligations of heirs · 6 min
- Renovation benefits — Grants and reductions by region · 5 min
Invest in your own name or through a company? Belgium does not have the French-style “SCI” — the equivalents are the société simple (simple company) or the SRL (private limited company). The choice depends on your assets and strategy.
Articles in this chapter
- SCI in Belgium — Advantages, disadvantages, comparison · 8 min
- SCI taxation — Corporate tax vs PIT · 6 min
- Second homes — Municipal tax and declaration · 4 min
Residential letting is VAT-exempt. Commercial letting may be subject to 21% VAT under certain conditions (option available since 2019). Vacant properties are subject to municipal taxes.
Articles in this chapter
- VAT and letting — Residential exemption, VAT option · 5 min
- VAT on commercial letting — 21% option, conditions since 2019 · 6 min
- Vacant property tax — Amounts by municipality, appeals · 4 min