Loan for use vs rent-free lease in Belgium: differences
Difference between a loan for use (commodatum) and a rent-free lease in Belgium. Occupant's rights, taxation, termination and reclassification. Complete legal guide.
The legal distinction
In Belgian law, the loan for use (or commodatum) and the lease are two fundamentally different contracts:
| Criterion | Lease | Loan for use (commodatum) |
|---|---|---|
| Rent | Yes (essential element) | No (free) |
| Legal basis | Art. 1714 Civil Code | Art. 1875-1891 Civil Code |
| Nature | Onerous contract | Gratuitous contract |
| Tenant protection | Strong (3-6-9, notice) | Very weak |
| Registration | Mandatory | Not necessary |
| Duration | Statutory (9 years by default) | Freely agreed |
The term “free lease” is a misnomer. A contract without rent is not a lease. It is a loan for use. The distinction is fundamental because it determines the applicable protection regime.
For details on free leases, consult our dedicated guide.
Occupant’s rights under a loan for use
The occupant of a property under a loan for use has very limited rights compared to a tenant:
What they have
- Right to occupy the property for the agreed use
- Right to the return of their personal belongings at the end
- Obligation of the lender not to take back the property before the agreed term
What they do NOT have
- No statutory minimum duration
- No right to renewal
- No right to compensation on departure
- No protection against sale of the property
- No rental deposit
- No registration (therefore not enforceable against third parties)
The loan for use is the most precarious occupation contract in Belgian law. The occupant has virtually no legal protection. This is why it is reserved for temporary and family situations.
Taxation of the loan for use
For the landlord
Even without rent, the landlord is taxed on the indexed cadastral income of the property in their tax return.
Additionally, a free loan to a family member may be classified as an indirect donation subject to donation duties (if the value of the benefit is significant).
For the occupant
The free occupant may be taxed on a benefit in kind if the loan for use comes from their employer or a company. The benefit is assessed on a lump-sum basis by the tax authorities.
Risk of reclassification
If the occupant pays a regular “reimbursement”, even a modest one, the tax authorities may reclassify the loan as a lease. Consequences: taxation on actual rent, mandatory registration, application of the 9-year lease.
In practice: when to use each formula
Loan for use recommended if:
- Temporary accommodation of a family member (parents, child in transition)
- Property awaiting sale or works
- Free occupation linked to employment (service accommodation)
- Short duration and clear circumstances
Lease recommended if:
- Long-term occupation (even with a modest rent)
- Need for legal protection for the occupant
- Desire to formalise the relationship (registration, deposit)
- Rental income desired (even modest)
In both cases, a written contract is essential. To create a lease with a modest rent but legal protections, use our online lease generator. For more information, consult our guide on residential leases in Belgium.