Personal income tax and rental income in Belgium
How personal income tax applies to rental income in Belgium. Progressive rates, Section III of the tax return, tax codes, and simulation for landlords.
The personal income tax mechanism for rental income
Rental income is added to other income (professional, investment) for personal income tax calculation. It is taxed at the taxpayer’s highest marginal rate, which can reach 50% above 46,440 EUR of income (tax year 2027).
For properties rented to individuals, the tax base is the indexed RC x 1.40 — not the actual rent. For properties rented to companies, the tax base is the actual gross rent minus deductions.
Tax brackets
| Bracket | Rate |
|---|---|
| 0 - 15,820 EUR | 25% |
| 15,820 - 27,920 EUR | 40% |
| 27,920 - 46,440 EUR | 45% |
| Above 46,440 EUR | 50% |
Municipal surcharges (6-9%) are added on top. The effective marginal rate can reach 53-54%.
Tax simulation
Use the Tax-on-web simulator from FPS Finance to calculate the impact of additional property income. Enter the RC of the property you are considering to estimate the additional tax. The effective rate depends on your marginal bracket.
Optimisation
The main lever is mortgage interest deduction which reduces taxable property income. Borrowing to invest is fiscally optimal. For a complete fiscal strategy, consult our rental taxation guide and manage your portfolio with a rental management software.
Frequently asked questions
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Yes. Immovable income is added to other income (professional, movable) for personal income tax calculation. It is taxed at the taxpayer's highest marginal rate, which can reach 50% above EUR 46,440 of income (tax year 2027).
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Code 1106: property rented to an individual (non-indexed cadastral income). Code 1109: property rented to a company (gross annual rent + benefits). Code 1130: property located abroad. All in Section III (immovable income) of Tax-on-web.
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Yes. The Tax-on-web simulator from FPS Finance allows you to calculate the impact of additional immovable income. Enter the cadastral income of the planned property to estimate the additional tax. The effective rate depends on your marginal bracket.