Airbnb - Tax Guide 2024 - Belgium

November 2023

BELGIUM – TAX CONSIDERATIONS ON SHORT-TERM LETS

The following information is a guide that can help you get started in learning about some of the

tax requirements that might apply to you when providing short-term accommodation in Belgium.

Taxes can be tricky and it is important to ensure that you keep up to date with your tax

obligations and remain tax compliant. The timely preparation, ﬁling and payment of taxes are

your responsibility.

If you are supplying shor t-term accommodation in Belgium, you should make sure that you

understand each of the following types of taxes, and pay the ones that apply to you:

● Income taxes

● Value added tax (VAT)

Please understand that this information is not comprehensive, and is not intended to be legal

advice. If you are unsure about your local tax obligations, we encourage you to check this with

oﬃcial local sources, or to seek advice from qualiﬁed professionals.

Please note that we do not update this information in real time, so you should conﬁrm that the

laws or procedures have not changed recently.

We draw your attention to the fact that Airbnb may have an obligation to report income earned

by users of the platform. Therefore, if there is a mismatch between the information reported by

Airbnb and the income you reported in your annual income tax return, the tax authorities may

ask you questions.

INCOME TAX

When an individual earns income in Belgium, you will be required to pay taxes, i.e., a percentage

of this income, to the Belgian tax authority. Below is a brief outline of the tax that may arise on

income earned from the rental of short-term accommodations in Belgium and some information

on how this tax can be paid to the Belgian tax authorities.

Belgium’s tax year runs from 1 January to 31 December.

Coming within the charge to income tax in Belgium

All Belgian resident taxpayers who receive taxable income have a tax ﬁling obligation

inBelgium.

Belgian income tax rates

The tax rate applied depends on the type of income received. The tax rates applied can be

progressive or ﬂat.

Outlined below are the progressive tax rates that may apply (income year 2023 ):

● 25% on income from €00.01 to €15,200.00;

● 40% on income from €15,200.01 to € 26,830.00;

● 45% on income from € 26,830.01 to €46,440.00;

● 50% on income over €46,440.00.

Immovable income is globalized together with professional income and progressive tax rates

apply on globalized revenue.

By way of explanation, immovable income refers to income from real estate and movable

income relates to renting a furnished property. Therefore, if you rent a furnished property you

will receive both immovable and movable income. Miscellaneous income refers to income from

the non-professional provision of additional services, which will be further explained below.

Taxation of income from the rental of short-term accommodations will be discussed in more

detail under “Belgian speciﬁc rules applicable to income earned in relation to short-term lets”.

Where you have any doubt regarding the reporting of your income for tax purposes, you should

consider whether it may be appropriate to seek advice from a professional tax advisor or

accountant to assist in completing your tax return.

Reporting income in Belgium

When reporting your income to the Belgian tax authority you can ﬁll out a regular paper tax form

or use the electronic tax return provided by the Belgian tax authorities, Tax-on-Web.

Reporting income - ﬁling deadline

Please note that the exact dates for ﬁling the 202 3 income tax returns have not yet been

conﬁrmed by the Belgian tax authority. However, if you are a Belgian resident and you are ﬁling a

paper return, the deadline for ﬁling is generally the end of June following the end of the income

year. If you are ﬁling your tax return electronically, the ﬁling deadline is generally a date in July

following the end of the income year e.g., for income year 2023 the deadline for ﬁling will be

a date in July 2024 to be conﬁrmed.

If a proxy holder -- that is, an accountant or tax service provider -- is ﬁling a tax return for a client,

they have as a matter of principle until mid or end of October to ﬁle an electronic tax return e.g.,

for the income year 2023 tax return, the deadline for ﬁling is a date in October 2024 to be

conﬁrmed.

If you are non-resident, the due date for ﬁling paper tax returns is usually a date in November

(yet to be conﬁrmed) following the end of the year. For electronic ﬁlings the legal due date is

generally in the course of the month of December following the end of the income year.

As noted above the exact dates for ﬁling the 2023 tax return have yet to be conﬁrmed by the

Belgian tax authority.

Reporting income - payment deadline

When you receive a notice of assessment from the Belgian tax authority, you have two months

following the issuance of this assessment to pay any tax due. Belgian tax authorities have in

principle until 30 June of the year following the tax year (the tax year is the year following the

income year) to issue the notice of assessment (i.e., for income year 2023, end of June

2025).

Belgium Tax Authority contact details

Further contact information can be found on the Belgian tax authorities’ website below.

http://ccff02.minﬁn.fgov.be/annucomp/main.do.

Belgian speciﬁc rules applicable to income earned in relation to the rental of short-term

accommodations

If you rent out part of a property which is also your own dwelling, this rental income is taxed at

the progressive tax rates outlined above. This calculation is based on the deemed rental income

(the so-called cadastral income) in proportion to the part of the property rented, and the period

during which the property was actually rented during the income year (on a daily basis).

If you rent out part of a property which is not your own dwelling (second residence), this rental

income is taxed at the progressive tax rate, based on the deemed rental income of the entire

property and the entire calendar year (i.e., not on the actual rental income), except if your activity

is considered to be a professional activity.

In cases where the property is furnished, you will also be taxed on movable income which

corresponds to 40% of the global revenue of the rental. Movable income is taxed at 30% plus

communal taxes between 0 to 9%, depending on the commune of residence.

Finally, if you provide additional ser vices such as cleaning, breakfast, linens, etc., you will also be

taxed (tax rate: 33% + communal taxes from 0 to 9%) on this miscellaneous income. This

miscellaneous income should be separated from global revenue of the rental.

Please note that different rules apply if rented to corporations or individuals who are using the

rented property for professional purposes. This analysis applies for lettings to individuals for

their private use. Other rules will apply if your renting activity is such that it is considered to be a

professional activity.

Typical expenses that can be deducted from an individual's income in relation to short- term

lets

Belgian rules around tax deductions for the interest incurred on the mortgage and the capital

amount of your mortgage are very speciﬁc (notably in function of the region in which you reside

and the date into which the mor tgage has been entered) and must be analyzed case by case.

In relation to the movable income part, expenses are deductible based on actual expenses (such

as bank charges) incurred, or using the legal lump-sum percentage of 50%. In practice, the 50%

lump-sum is more favourable for taxpayers.

With respect to the miscellaneous income, any expenses incurred to obtain the income are in

principle deductible. This may include water, heat and electricity costs, ﬁre insurance, etc.

Deductions available for tax depreciation (e.g., capital allowances / wear and tear)

You cannot receive a deduction for capital allowances against rental income to the extent that

the rental income is not received within a professional activity structure.

Some capital redemption payments made within the scope of a mortgage loan may be

deductible. However, mortgage loan deduction rules are very speciﬁc in Belgium and should be

analyzed case by case.

Belgian income tax obligation for non-residents

In case the property is rented out, you are required to report: 1) the deemed rental income, 2)

movable income (if renting a furnished property) and 3) any miscellaneous income (in case

additional services are provided).

In certain cases, where the indexed deemed rental income increased by 40% does not exceed

€2.500, if you are a non-resident taxpayer you have no ﬁling obligation (if you have no other

Belgian sourced income).

If you are a non-resident taxpayer, you must always pay property tax as noted below. You can

read more information on the following Belgian tax authorities’ website.

Belgian income tax obligations for a Belgian individual in receipt of foreign rental income

If you are a Belgian resident taxpayer you must declare your worldwide income, including foreign

real estate income.

As of income year 2021, a change in the method used for estimating income from real estate

located abroad will be made, and the taxable base will be calculated on the basis of the

cadastral income of the foreign real estate (i.e., the same notion that is already applied for

Belgian real estate in certain cases), and no longer on the basis of the deemed annual gross

rental value of the real estate.

The Belgian administration, i.e., the “Administration Mesures et Evaluations” ("AME"), should in

principle have contacted you to determine the cadastral income of the foreign real estate if your

return for income year 2019 included income from foreign real estate.

●

Note that the cadastral income of the foreign real estate will generally be determined on the

basis of the following formula: actual normal sales value / correction factor x 5.3%. The

correction factor aims to adapt the current value of the real estate to its value at the date of

acquisition and ranges from 1.000 (in case the real estate was acquired on/before 1975) to

15.036 (if the real estate was acquired in 2020), 15.018 (if the real estate was acquired in 2021),

15.011 (if the real estate was acquired in 2022) or 15.250 (if the real estate was acquired in

2023).

In addition to the above, please note that if you buy or sell any immovable property abroad after

1 January 2021, you will have to spontaneously submit a tax return (within 4 months of the

acquisition, with a transitional measure during income year 2021). This also applies if there are

any relevant changes/works made to your current real estate (within 30 days after the works are

completed).

General property taxes payable

If you own real estate property in Belgium you must pay an annual property tax: 1.25% (for

Brussels and Walloon regions) or 2.5% (Flemish region) of indexed cadastral income +

provincial and communal surcharges.

Capital taxes in Belgium.

If you sell real estate property that is not your own dwelling within 5 years after its purchase, you

will be taxed on capital gains (degressive) at a ﬂat tax rate of 16.5% + communal surtaxes.

Other rules may apply for speciﬁc cases i.e., speculation or property inherited or received.

Sample Tax Computation 1

Assumptions:

● An individual is renting out an apar tment that is not his own dwelling.

● The apartment is furnished and additional services are provided, such as cleaning,

linens, etc.

● -Deemed rental income of the apartment is €900 (not indexed cadastral income).

● -Gross revenue from Airbnb for income year is €7,000.

● -Qualiﬁed interests paid for mortgage loans are €2.000 during the income year

(meeting condition for tax deductibility).

● Expenses made by host to obtain Airbnb gross revenue equal €1.000 / year (ﬁre

insurance, water, heat and electricity costs).

● Communal taxes from 0 to 9% are not included.

1. Immovable income

€

Taxable basis: indexed deemed rental income increased by 40% reduced by

mor tgage loan interests (€900x2. 0915x1.4-€2,000)

634.80

Applicable tax rate: progressive tax rate = 50%

Taxes Due

317.40

2. Movable income

Taxable basis: 40% (if nothing is speciﬁed in rental agreement) of gross

income from Airbnb reduced by legal lump-sum for costs (50%) = €7,000 x

40% x 50%

1,400

Tax rate: 30%

Taxes Due

420

3. Miscellaneous income

Taxable basis: % (to be estimated if nothing is speciﬁed in rental agreement)

of gross income from Airbnb reduced by real costs = €7,000 x 20%

(estimated)- €1,000

400

Tax rate: 33%

Taxes Due

132

Total Taxes Due - (€317.40+€420+€132)

869.40

Sample Tax Computation 2

Assumptions:

● An individual is renting out a part of his own dwelling (25%)

● The par t of the dwelling that is rented is furnished and additional services are provided,

such as cleaning, linens, etc.

● Deemed rental income of the full dwelling is €900 (not indexed cadastral income).

● Gross revenue from Airbnb for income year is €7,000.

● Interest paid for mortgage loans are €2.000 during the income year. Given the speciﬁcity

of mortgage loan deduction for own dwelling, we do not consider this for the sample

computation.

● Expenses made by host to obtain Airbnb gross revenue equal €1.000 / year (ﬁre

insurance, water, heat and electricity costs).

● Communal taxes from 0 to 9% are not included.

1. Immovable income

€

Taxable basis: indexed deemed rental income related to the part of the

dwelling which is rented (i.e. 25%), increased by 40% (possibly reduced by

mor tgage loan interests) (€900x25%x2. 0915x1.4)

659.40

Applicable tax rate: progressive tax rate = 50%

Taxes Due

329.70

2. Movable income

Taxable basis: 40% (if nothing is speciﬁed in rental agreement) of gross

income from Airbnb reduced by legal lump-sum for costs (50%) = €7,000 x

40% x 50%

1,400

Tax rate: 30%

Taxes Due

420

3. Miscellaneous income

Taxable basis: % (to be estimated if nothing is speciﬁed in rental agreement)

of gross income from Airbnb reduced by real costs = €7,000 x 20% (estimated)

- €1,000

400

Tax rate: 33%

Taxes Due

132

Total Taxes Due - (€329.70+€420+€132)

881.70

VALUE ADDED TAX

Value added taxes can be complicated and you should take time to understand the rules as they

apply to you and your particular situation.

Broadly speaking, Value-Added Tax (VAT) in Belgium is a tax on consumption. Most goods and

services supplied in Belgium are subject to VAT.

A person who supplies goods and/or services in Belgium may have to charge VAT and pay this

to the Belgian tax authority. As with all taxes, we encourage you to consult with a tax advisor

regarding your potential VAT obligations in Belgium.

If you are currently renting a room to guests, you may be required to apply VAT to your rental

charge and to pay this VAT amount to the Belgian tax authorities. As Airbnb is not supplying the

rental, it is the responsibility of the host to consider local VAT obligations of the rental charge.

Do I need to collect any VAT from guests if I am letting short-term accommodation in

Belgium?

In general, individuals who are considered to be in business in Belgium need to charge VAT on

their supplies, once the criteria for VAT registration is met.

If you let furnished accommodation on a short-term basis with additional services in Belgium,

you may be required to register for VAT and to collect Belgian VAT (at the reduced VAT rate of

6%) from your guests.

As a rule, the letting of a furnished accommodation for a period of less than three months is

VAT taxable (at the reduced VAT rate of 6%) when one of the following closely related services is

provided: reception, weekly renewal of bed linen or daily breakfast (whether or not it is included

in the total price or separately charged).The provision of furnished accommodations for a

period of more than three months is as a rule VAT-exempt. The provision of unfurnished

accommodations is as a rule VAT-exempt, regardless of the rental period. For further guidance

on the VAT treatment applicable to furnished accommodations, please see the Belgian tax

authorities’ website. ”

There are a number of circumstances where a person who lets accommodation on a short-term

basis in Belgium will therefore not have to collect any VAT from guests, such as where you

supply unfurnished accommodations (since that is a VAT exempt activity).

Where you supply furnished accommodation and where your total turnover excluding VAT is

below €25,000, you may also qualify for the special VAT regime for Small Entrepreneurs (still

subject to speciﬁc formalities), which would mean that you do not need to charge VAT.

However, this regime does not apply to the letting of furnished accommodations for a period of

less than three months with one of the closely related services referred to above (except under

the speciﬁc regime of thecollaborative economy). We encourage you to consult with a local tax

advisor to conﬁrm whether this exception may apply to you.

If you are an individual who is not resident in Belgium, but your accommodation is located in

Belgium, you will not beneﬁt from the special VAT regime for Small Entrepreneurs and the

general rules shall apply to you.

We encourage you to consult a tax advisor if you need assistance in determining whether you

need to register for and charge Belgian VAT.

For further guidance on registering for VAT, please see the Belgian tax authorities’ website.

VAT applies to me. How do I determine how much tax I need to collect from my guests?

VAT rates differ per countr y and change periodically. We recommend that you check on a regular

basis with the local tax authority to get the most up to date VAT rates for the country where you

are required to pay VAT.

For example, at the date of issuance of this document, the Belgian VAT rate applicable to the

letting of furnished accommodation is 6%. The supply of furnished accommodation is

characterized by a permanent organization allowing the provision of services to guests such as

the provision of accommodation with a place to sleep, e.g., a bed or a couch. The length of the

guest's stay does not make a difference to the VAT rate that applies.

However, there are other VAT rates (12 and 21%) currently in force in Belgium. Additional or

extra supplied services may be subject to a different VAT rate in Belgium, so we recommend

that you conﬁrm with a local tax advisor the VAT rate applicable to your supplies.

VAT applies to me. How do I collect VAT from guests?

If you determine that you need to charge VAT on the supplies that you make to guests, please

keep in mind that you have to collect this VAT from your guests and report and remit this VAT on

a periodic VAT return.

In Belgium, how frequently a VAT return will have to be submitted will depend on whether your

Belgian yearly turnover exceeds €2,500,000 (excluding VAT). If your Belgian yearly turnover

exceeds €2,500,000, you will be obliged to ﬁle monthly VAT returns. If your turnover is beneath

this threshold, you can choose between monthly or quarterly VAT returns subject to certain

conditions. VAT returns should be ﬁled online via INTERVAT. The VAT return has to be ﬁled and

payment has to be made to the Belgian authorities no later than the 20

of the month following

the reporting period. There is also a requirement to make a VAT advance payment on the 20th of

December each calendar year.

If you rent out your accommodation to Belgian VAT registered customers (such as companies)

exceeding the yearly €250 (excluding VAT) reporting threshold, you have to submit a yearly

listing indicating the turnover amount of relating to these rentals per Belgian VAT registered

customer. This listing is due by 31 March of the following year.

Some formalities, such as issuing a receipt or an invoice to your guests, are required. Please

ﬁnd more information on this here (please note that an account must be created in order to

access this information).

For further guidance on ﬁling returns, please see the Belgian tax authorities’ website.

The pricing to guests (private individuals) should be the VAT inclusive price. We recommend

that you check your obligations in terms of relevant invoice requirements with a local

taxadvisor.