Renting to a company: tax return in Belgium
How to declare income from a property rented to a company in Belgium. Actual rent, capped flat rate, personal income tax codes, and difference from renting to an individual.
The principle of renting to a company
When the tenant is a company or professional, the landlord is taxed on the actual rent — not on the cadastral income. This results in significantly higher taxation. The actual rent is typically 3 to 5 times higher than the indexed RC.
Tax calculation
Taxable income = actual gross rent - flat-rate deduction (40% capped at 2/3 of revalued RC) or actual costs. Since the flat rate cap is very low, actual costs are almost always preferable.
For a mixed lease (part residential, part professional), only the professional share is taxed on the actual rent. The residential share remains on the RC. The allocation must be specified in the lease.
Actual costs vs flat rate
For properties rented to a company, opt for actual costs: mortgage interest, property tax, insurance, maintenance. The capped flat rate is almost never advantageous. See our guide on actual costs vs flat rate.
How to declare
Enter the annual gross rent at code 1109 in Section III of the personal income tax return. Deduct actual costs or the flat rate. Keep all invoices for 7 years. A rental management software generates the annual summaries. For complete information, consult our rental taxation guide.
Frequently asked questions
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Because the taxation is based on the actual rent (not the cadastral income). The actual rent is generally 3 to 5 times higher than the indexed cadastral income. Moreover, the flat-rate charge deduction is capped at 2/3 of the revalued cadastral income, which limits the deduction.
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Yes. For a property rented to a company, the owner can opt for actual costs (interest, property tax, insurance, maintenance) if they exceed the capped flat rate. This is almost always the case.
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No. Only the professional share is taxed on the actual rent. The residential share remains taxed on the cadastral income. The split must be stated in the lease (e.g. 70% residential / 30% professional).