Rental income in Belgium: how is it taxed?
Complete guide to the taxation of rental income in Belgium. Cadastral income, personal income tax, actual rent, deductions, and tax optimisation for landlords.
The Belgian rental income system
Belgium taxes rental income differently depending on the tenant type. Properties rented to individuals are taxed on the cadastral income (RC), which is far below the actual rent. Properties rented to companies or professionals are taxed on the actual rent received.
This dual system makes Belgium very attractive for landlords who rent to individuals.
Rented to an individual
Taxable income = indexed RC x 1.40. For a property with an RC of 1,000 EUR and an actual rent of 800 EUR/month: taxable income is approximately 2,943 EUR while actual annual rent is 9,600 EUR. The landlord is taxed on roughly one-third of the actual income.
Rented to a company
Taxable income = actual gross rent - deductions (flat rate capped or actual costs). This results in significantly higher taxation than renting to an individual. See our detailed guides on renting to a company and actual costs vs flat rate.
Optimisation
Key optimisation levers: mortgage interest deduction (the only real deduction for individual tenants), renting to individuals when possible (favourable RC taxation), holding for over 5 years (capital gains exemption). For a complete fiscal strategy, consult our rental taxation guide. A rental management software simplifies tax management.
Frequently asked questions
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Not always. If the tenant is an individual using the property as their residence, taxation is based on the indexed cadastral income, not the actual rent. The actual rent is only used if the tenant is a company or professional.
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Immovable income is added to other income and taxed at the progressive personal income tax rate (25 to 50%). There is no specific rate for rental income. The effective rate depends on the owner's total income.
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Yes, via the 40% flat rate on the indexed cadastral income (applied automatically by the tax authorities). Actual costs are only deductible for properties rented to a company. For properties rented to an individual, only the flat rate applies.