Renting to a non-profit association (ASBL) in Belgium
Renting a property to a non-profit (ASBL) in Belgium. Type of lease, taxation for the landlord, guarantees, and specifics of the non-profit lease.
- 01 Legal framework
- 02 The non-profit lease
- 03 Taxation
- 04 Practical tips
Legal framework
Renting to an ASBL (non-profit association) in Belgium follows specific rules. The type of lease depends on the use the non-profit will make of the property.
Which lease to apply
| Use | Lease type |
|---|---|
| Registered office / offices | Common law |
| Commercial activities | Commercial lease |
| Housing of beneficiaries | Primary residence lease (depending on case) |
| Mixed activities | Mixed lease or common law |
| The lease classification has important consequences for the parties’ rights and obligations. See our guide on the lease and contract for general rules. |
The non-profit lease
Specificities
A lease with a non-profit differs from a standard lease in several ways: the non-profit is a legal entity (the lease is not linked to an individual), the deposit can be higher (no legal cap under common law), the notice and duration are freely set (outside primary residence lease), and registration remains mandatory.
Recommended clauses
- Authorised use: specify the activity carried out in the property
- Director liability: personal guarantee clause
- Insurance: obligation to take out occupant insurance
- Subletting: explicitly authorise or prohibit
- Property inventory: detailed and adversarial
Social housing case
When the non-profit houses persons in difficulty, the arrangement can take the form of a transitional lease. The non-profit is the main tenant and the beneficiary the occupant.
Taxation for the landlord
Personal income tax
Renting to a legal entity (non-profit) results in taxation on actual rent:
| Element | Calculation |
|---|---|
| Gross annual rent | Total rent received |
| Flat-rate deduction | -40% (max cadastral income x 2/3) |
| Tax base | Gross rent - deduction |
| This is less favourable than renting to an individual (taxed on indexed cadastral income x 1.4). |
VAT
Property rental is in principle VAT-exempt. Exception: if the landlord opts for VAT (new buildings since 2019), 21% VAT applies.
Property tax
The property tax remains the landlord’s responsibility. No exemption is provided for rental to a non-profit. For tax details, see our guide on rental taxation.
Practical tips
For the landlord
- Check the non-profit’s solvency (annual accounts published at the NBB)
- Require a personal guarantee from the directors
- Provide for a 3 to 6 month rental deposit (no cap under common law)
- Include a precise purpose clause
For the non-profit
- Budget the rent in the financial plan
- Obtain the board of directors’ consent to sign the lease
- Take out insurance suited to the activity
- Comply with habitability standards if the property receives the public
In case of dissolution
The non-profit’s dissolution does not automatically end the lease. The liquidator must terminate the lease in the legal forms. This is a risk to anticipate in the contract. To create a suitable lease, use our online lease generator and see our guides on the landlord’s rights.
Frequently asked questions
-
If the ASBL uses the property as its registered office or office, it is a common law lease. If it houses beneficiaries, a primary residence lease may apply depending on the circumstances.
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The landlord is taxed on the actual rent (not on the cadastral income) because the ASBL is a legal entity. The actual rent less flat-rate expenses (40%) constitutes the tax base.
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Yes, if the lease authorises it. The ASBL can enter into occupancy agreements with its beneficiaries. This is a common mechanism for transitional housing and the sliding lease.