Actual costs vs flat rate for rental income in Belgium
Should you choose actual costs or the flat rate to deduct charges from your rental income in Belgium? Comparison, calculation, and practical cases.
- 01 The principle
- 02 The flat rate
- 03 Actual costs
- 04 How to choose
Flat rate vs actual costs: the principle
The choice between flat rate and actual costs only applies to properties rented to a company. For properties rented to an individual, the 40% flat rate on the RC is automatic and mandatory — no choice is possible.
| Tenant type | Choice available | Recommended |
|---|---|---|
| Individual | No (flat rate only) | N/A |
| Company | Yes | Actual costs (almost always) |
| Mixed | Split by share | Actual costs for professional share |
The flat rate
The flat rate covers maintenance, repair and charge costs. It equals 40% of the gross rental income but is capped at 2/3 of the revalued RC. This cap makes it very low in practice.
Example: Gross rent 18,000 EUR/year, RC 800 EUR. Revalued RC = ~3,350 EUR. Cap = 2/3 x 3,350 = ~2,233 EUR. The flat-rate deduction is only 2,233 EUR on 18,000 EUR of income.
Actual costs
When opting for actual costs, the landlord deducts all documented expenses: interest, property tax, insurance, maintenance, management fees and rental management software costs. Every expense must be documented with invoices kept for 7 years.
How to choose
Actual costs are more advantageous in the vast majority of cases for properties rented to a company. The capped flat rate is simply too low. Calculate both options and compare. A rental management software simplifies tracking. For a complete analysis, consult our rental taxation guide.
Frequently asked questions
-
Only for a property rented to a company. For a property rented to an individual, the 40% flat rate on the cadastral income is automatic and mandatory -- no choice available. For a property rented to a company, the owner can opt for actual costs if more advantageous than the capped flat rate.
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Almost always for a property rented to a company. The flat rate is capped at 2/3 of the revalued cadastral income, which gives a very low amount (often EUR 1,000-2,000). Actual costs (interest, property tax, insurance, maintenance) easily exceed this cap.
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Yes. All invoices, receipts, and certificates must be kept for 7 years (tax limitation period). The tax authorities may request supporting documents in case of an audit.