Depreciation of a rental property in Belgium: possible or not?
Can you depreciate a rental property as an individual in Belgium? No for individuals, yes for companies. Explanation, calculation, and alternatives.
The clear answer: no as an individual, yes via a company
| Structure | Depreciation | Reason |
|---|---|---|
| Individual | No | Taxation on RC (already favourable flat rate) |
| Company (SRL, SA) | Yes (3%/year, 33 years) | Taxation on actual rent (full deductions) |
This is a common question from beginner investors, especially those coming from France where the LMNP system allows depreciation as an individual. In Belgium, it is impossible.
The Belgian system offsets this impossibility through taxation on the cadastral income for properties rented to an individual — a tax base much lower than the actual rent.
For details on depreciation via a company, consult our complete guide.
How depreciation works via a company
Calculation
| Element | Rate | Duration |
|---|---|---|
| Building | 3% / year | 33 years |
| Land | Not depreciable | - |
| Improvements (kitchen, bathroom) | 10-20% / year | 5-10 years |
| Furniture (furnished lease) | 10-20% / year | 5-10 years |
Land / building allocation
The allocation is determined by valuation or convention:
| Location | Land share | Building share |
|---|---|---|
| Brussels city centre | 30-40% | 60-70% |
| Brussels outskirts | 20-30% | 70-80% |
| Wallonia (city) | 15-25% | 75-85% |
| Wallonia (rural) | 10-15% | 85-90% |
| Flanders (city) | 25-35% | 65-75% |
Tax impact
For a property worth 300,000 EUR (80% building = 240,000 EUR):
- Annual depreciation: 240,000 x 3% = 7,200 EUR
- Corporate tax saving (25%): 1,800 EUR/year for 33 years
Beware: depreciation increases the taxable capital gain in case of resale. Consult our guide on SCI in Belgium.
Alternatives to depreciation as an individual
Even without depreciation, the individual owner has fiscal levers:
| Lever | Effect | Guide |
|---|---|---|
| Mortgage interest | Deductible from property income | Only real deduction as individual |
| Favourable RC | Tax base 3-5x lower than actual rent | Automatic |
| Capital gains exemption | 0% after 5 years of ownership | Individual only |
| 6% VAT | Renovation at reduced rate | Building over 10 years old |
| Regional subsidies | Renovation grants | Can be combined |
By combining these levers, the individual owner often achieves a fiscal result just as good or even better than via a company (thanks to favourable RC + capital gains exemption).
What to choose: company depreciation or individual RC?
Comparative simulation (10 years)
| Element | Individual | Company |
|---|---|---|
| Annual rental income tax | ~1,500 EUR (on RC) | ~2,200 EUR (corporate tax after deductions + depreciation) |
| Capital gain on resale | 0 EUR (after 5 years) | ~12,500 EUR (corporate tax 25%) |
| Dividend to extract cash | 0 EUR | ~8,000 EUR (30% withholding) |
| Structure costs (10 years) | 0 EUR | ~25,000 EUR |
| Total taxes + costs (10 years) | ~15,000 EUR | ~47,700 EUR |
Company depreciation generates an annual tax saving but structure costs, capital gains and dividends largely cancel this advantage. For a single property, individual ownership wins clearly.
For a personalised analysis, consult an accountant. A rental management software centralises your documents. To create a lease, use our online generator.
Frequently asked questions
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No for individuals (personal ownership). Yes for companies (SRL, SA). In Belgium, an individual who rents out a property cannot depreciate the building in their personal income tax return. Only companies can deduct an annual depreciation charge from taxable profit.
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Because rental income for individuals is taxed on the cadastral income (not on the actual rent). The cadastral income system is already a form of advantageous flat rate. Depreciation would be a double benefit.
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3% per year over 33 years for the building. Land is not depreciable. The land/building split is generally 20-30% land and 70-80% building.