Rent-free lease: is it allowed in Belgium?
Can you rent a property for free in Belgium? Rent-free lease, loan for use, commodatum: legal framework, taxation and consequences for landlord and occupant.
Free lease or loan for use?
In Belgian law, a lease is a contract whereby one party undertakes to let the other enjoy a property in exchange for a price (rent). Without rent, there is no lease in the legal sense.
A no-rent occupation contract is a loan for use (commodatum), governed by Articles 1875 to 1891 of the Civil Code. It is a contract whereby the owner makes a property available free of charge to a person who undertakes to return it.
| Criterion | Lease | Loan for use (commodatum) |
|---|---|---|
| Rent | Yes (required) | No (free) |
| Tenant protection | Strong (3-6-9, notice, deposit) | Weak |
| Registration | Mandatory (free) | Not necessary |
| Duration | Statutory (9 years by default) | Agreed between the parties |
| Termination | Regulated (notice, grounds) | Free (reasonable notice) |
| Rental deposit | Yes | No |
A “free lease” is therefore a misnomer. What exists is a loan for use. The difference between a lease and a commodatum is fundamental in terms of rights.
Tax consequences
For the landlord
Even if the property is occupied free of charge, the landlord is taxed on the indexed cadastral income of the property in their tax return. The tax authorities disregard the absence of actual rent.
Additionally, if the property is lent to a family member, the tax authorities may consider the “gifted” rent as an indirect donation, subject to donation duties.
For the occupant
The occupant of a property lent free of charge does not pay rent but generally bears the running costs (water, gas, electricity, communal charges). Depending on the property’s value, the tax authorities could consider the free accommodation as a taxable benefit in kind.
If the landlord receives a regular “reimbursement” even of a modest amount, the tax authorities may reclassify the loan for use as a lease. The consequences: taxation on actual rent, mandatory registration, and application of primary residence lease protections.
Legal risks
Reclassification as a lease
If the occupant can demonstrate:
- A regular payment (even if not called “rent”)
- Stable long-term occupation
- Use as primary residence
The judge may reclassify the loan as a 9-year primary residence lease. The occupant then benefits from all statutory protections.
Lack of protection for the occupant
Conversely, if the landlord wants to recover the property, the commodatum occupant has no protection:
- No minimum duration
- No right to renewal
- No right to compensation
- No recourse before the Justice of the Peace (except abuse of right)
What to do in practice
If you want to house someone for free
- Draft a loan for use contract in writing (not a lease)
- Specify the duration, charges payable by the occupant, conditions of return
- Do not receive any regular payment (even symbolic)
- Declare the cadastral income in your tax return
If you want reduced rent
- Draft a standard lease with a modest but real rent
- Register the lease with the FPS Finance
- The occupant benefits from the protections of the residential lease
- Taxation is calculated on the cadastral income (not actual rent) if the tenant is an individual
In both cases, a written document is essential. To create an adapted lease, use our online lease generator. For more information, consult our guide on residential leases in Belgium.