Property company (SCI) in Belgium: pros and cons for rental
Should you create a company (SCI) to invest in rental property in Belgium? Advantages, disadvantages, taxation, costs, and comparison with personal ownership.
- 01 Advantages
- 02 Disadvantages
- 03 SCI vs individual
- 04 Final verdict
Advantages of an SCI in Belgium
- Depreciation of the building (3%/year over 33 years)
- Full deduction of actual costs (interest, property tax, insurance, maintenance)
- Corporate tax rate of 25% (vs up to 50% personal marginal rate)
- Estate planning via share donations (lower duties, no notary deed required for shares)
- Liability limited to contributed capital
- Professional image for managing multiple properties
Disadvantages of an SCI in Belgium
- Annual structure costs: accounting (1,500-3,000 EUR), filings, publication
- Double taxation on dividend distributions (25% corporate + 30% withholding)
- No capital gains exemption after 5 years (always taxed at 25%)
- Higher acquisition costs (no reduced registration duties)
- Mandatory annual accounts and filings with the National Bank
- Complexity and rigidity of management
SCI vs individual ownership: 10-year comparison
For a single 250,000 EUR property rented at 900 EUR/month: individual ownership results in total taxes + costs of approximately 15,000 EUR. SCI results in approximately 47,700 EUR. The gap narrows with 3+ properties and very high personal income. See our detailed guide on company vs individual.
Final verdict
For most Belgian landlords with 1-2 properties, individual ownership is clearly preferable. An SCI becomes interesting from 3+ properties, high-income brackets and long-term estate planning. Always consult an accountant before making the decision. For complete analysis, see our rental taxation guide and use a rental management software.
Frequently asked questions
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For 1-2 properties, personal ownership is generally more advantageous (cadastral income, capital gains exemption after 5 years). A company becomes interesting from 3-4 properties onwards, for large portfolios, or for estate planning. The decision depends on your personal situation.
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In a company: 25% on the actual rent (less charges). Personal ownership rented to an individual: marginal personal income tax rate (25-50%) but on the cadastral income (much lower than actual rent). The rate is higher for individuals but the base is much lower.
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Yes, always. In a company, the property capital gain is taxed at 25% (corporate tax) without exemption after 5 years. As an individual, the capital gain is exempt after 5 years. This is the major disadvantage of a company for property.