Tax return for rental income in Belgium
How to declare your rental income in Belgium. Cadastral income, personal income tax codes, property rented to an individual or company. Step-by-step guide.
Who must declare their rental income
Every owner of a property in Belgium — whether rented or not — must mention it in their annual personal income tax (IPP) return. This applies to properties located in Belgium and abroad.
Even a vacant property must be declared. The cadastral income (RC) of each property is included in the tax return, regardless of whether it generates rental income or not. If you manage several properties, a rental management software centralises your tax documents and simplifies the declaration.
The RC of your primary residence is exempt. Only properties other than your primary residence generate taxable income.
How rental income is taxed
The taxation method depends on the identity of the tenant and how they use the property.
| Situation | Tax base | Tax code |
|---|---|---|
| Rented to an individual (private) | Indexed RC x 1.40 | 1106 |
| Rented to a company / professional | Actual rent - 40% (capped) | 1109 |
| Not rented / second home | Indexed RC | 1106 |
| Property abroad (rented) | Gross rental value - 40% | 1130 |
If your tenant uses part of the property for professional purposes, even a home office, the professional part will be taxed on the actual rent. The residential lease must specify the allocation.
Property rented to an individual — detailed calculation
This is the most common case. Your tenant uses the property as a residence, without professional activity.
Example: Pierre owns an apartment in Ixelles. RC: 1,200 EUR. Actual rent: 950 EUR/month. Taxable income = 1,200 x 2.1016 x 1.40 = 3,530 EUR. Pierre is taxed on 3,530 EUR, while he receives 11,400 EUR/year. The tax advantage is considerable.
In the 50% tax bracket, the additional tax is approximately 1,765 EUR/year — or 147 EUR/month on a rent of 950 EUR.
For furnished properties, a portion may be taxed separately as movable income.
Property rented to a company — actual rent
When the tenant is a legal entity, the landlord is taxed on the actual gross rent, minus a 40% flat-rate deduction (capped).
Example: Sophie rents an office to an SRL for 1,500 EUR/month. RC: 800 EUR. Flat-rate deduction (40%) = 7,200 EUR. Taxable income = 18,000 - 7,200 = 10,800 EUR. That is double the taxation if she rented to an individual (approximately 5,260 EUR).
If the rent is excessive, the tax authorities can reclassify the surplus as a benefit in kind. Make sure the rent is in line with the market. For a non-profit organisation, the same rules apply — consult our guide on renting to a non-profit.
Common mistakes to avoid
Confusing indexed and non-indexed RC
Enter the non-indexed RC. The tax authorities index automatically. Entering an already indexed RC = double taxation.
Forgetting the private/professional allocation
If your tenant carries out a professional activity, the professional part goes to code 1109. The lease must specify the allocation (e.g. 70/30). Consult our guide on mixed leases.
Not declaring a vacant property
A vacant property remains taxable on its RC. Exception: uninhabitable property — request a reduction of the property tax.
FPS Finance cross-references lease registrations with personal income tax returns. A registered lease that is not declared almost automatically triggers an audit. Surcharges: 10% to 200%. To avoid oversights, create your lease online with automatic MyRent registration.
Frequently asked questions
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If the tenant is an individual, taxation remains based on the cadastral income. If the tenant is a company, part of the income may be considered movable income, taxed at 30%.
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Surcharges of 10% to 200%. The tax authorities have 7 years to reassess in case of fraud.
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The full cadastral income is declared for the entire year, without proration.