Company vs personal ownership for rental investment in Belgium
Should you buy in your own name or via a company for rental investment in Belgium? Full tax comparison, simulation, and decision framework.
Company vs individual: side-by-side comparison
| Criterion | Individual | Company (SRL) |
|---|---|---|
| Tax on rental income | RC (low) or actual rent | Actual rent - all costs |
| Depreciation | No | Yes (3%/year) |
| Capital gains (after 5 years) | 0% | 25% |
| Dividend extraction | N/A | 30% withholding |
| Structure costs | 0 EUR | 2,500-5,000 EUR/year |
| Registration duties | Standard | Standard (no reduction) |
| Estate planning | Limited | Flexible (shares) |
Tax comparison over 10 years (single property 250,000 EUR)
Individual: taxed on RC (~1,500 EUR/year), no capital gains after 5 years, no structure costs. Total 10-year cost: approximately 15,000 EUR.
Company: taxed on profit after deductions (~2,200 EUR/year), capital gains always taxed, dividends taxed, structure costs ~25,000 EUR. Total 10-year cost: approximately 47,700 EUR.
Individual ownership wins by approximately 32,700 EUR over 10 years for a single property.
When to choose which
Individual is better when: 1-2 properties, renting to individuals (RC advantage), planning to sell (capital gains exemption), moderate income.
Company is better when: 3+ properties, renting to companies (full deductions needed), no sale planned, very high personal income (above 45% bracket), estate planning is a priority.
Decision framework
The decision should not be based on a single criterion. Consider the complete picture: number of properties, tenant type, selling plans, income level, estate planning needs. Always consult an accountant. For details, see our SCI guide and rental taxation guide.
Frequently asked questions
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For 1-2 properties rented to individuals with an intention to resell after 5 years, personal ownership is generally preferable (advantageous cadastral income, capital gains exemption). For 3+ properties, high professional income, or estate planning, a company may be advantageous.
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Yes, but it is expensive. The transfer is treated as a sale: registration duties (12-12.5%) + notary fees. This is why it is important to choose the right structure from the start. Consult a notary and an accountant before deciding.
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Yes. Banks are more cautious for loans to property companies: higher deposit required (25-30% vs 10-20% for individuals), potentially higher rates, personal guarantees requested. The borrowing capacity depends on the company's balance sheet.