Deductible costs for rental property in Belgium
Complete list of deductible costs for a rental property in Belgium. Interest, insurance, works, management: what is deductible and what is not.
Complete table of deductible costs
| Cost | Rented to individual | Rented to company |
|---|---|---|
| Mortgage interest | Yes | Yes |
| Property tax | No (in RC) | Yes |
| Non-occupant insurance | No (flat rate) | Yes |
| Fire insurance | No (flat rate) | Yes |
| Maintenance works | No (flat rate) | Yes |
| Management fees | No (flat rate) | Yes |
| Rental management software | No (flat rate) | Yes |
| Improvement works | No | No (capitalised) |
| Depreciation | No | No (as individual) |
| Notary fees | No | No |
For a property rented to an individual, only mortgage interest is deductible. All other costs are absorbed by the RC flat rate. For a property rented to a company, actual costs can be deducted, which is almost always more advantageous.
Mortgage interest
Mortgage interest is the most important deduction for landlords. It is deductible from total property income regardless of tenant type. See our detailed guide on mortgage interest deduction.
Works and maintenance
Only maintenance and repair works are deductible (if rented to a company). Improvement works (new kitchen, extension) are not deductible — they increase the property’s value and are capitalised. See our guide on renovation tax benefits.
What is not deductible
- Acquisition costs (notary fees, registration duties)
- Principal loan repayments
- Improvement works
- Personal expenses (decorating for personal taste)
- Depreciation as an individual
Keep all invoices even for non-deductible works: they reduce the taxable capital gain in case of resale. A rental management software helps track and organise all documents. For complete information, consult our rental taxation guide.
Frequently asked questions
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For a property rented to an individual, insurance is included in the 40% flat rate on the cadastral income (no separate deduction). For a property rented to a company, the non-occupant owner insurance premium is deductible as an actual cost.
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Yes, for a property rented to a company (actual costs deductible). For a property rented to an individual, management fees are covered by the cadastral income flat rate and are not separately deductible.
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Yes, if the property is rented to a company (deductible professional expense). For a property rented to an individual, the cost is included in the flat rate. In both cases, the software facilitates management and generation of tax documents.