Renting Out Your Second Home: What Do You Need to Keep in Mind?

Renting out a second home through Airbnb or a rental agency seems like an attractive way to generate extra income. However, there’s more to it than you might think at first glance.

Permits, income tax, VAT, and local taxes all play a role. Do you own a home abroad? If so, in addition to the Belgian rules, the local rules of the country in question.

1. Permits and Administrative Requirements

1.1 In Belgium

1.2 Abroad

If you rent out a property abroad, the following apply: local rules of that country, which may differ significantly from Belgian regulations. Therefore, always consult a local expert before you start renting out a property. Also consider a local administrator for key handoffs, maintenance, and communication with tenants, and ensure that the lease agreement is drafted in accordance with local law.

2. Tax and Financial Obligations

2.1 Income Tax (Personal Income Tax)

Belgian home

For personal income tax purposes, rental income from a Belgian vacation home is divided into two parts:

• •  Real estate section: Taxed based on the indexed assessed value plus 40%, at the progressive rate. Please note: interest paid on a loan secured by the property is no longer deductible from real estate income (abolished as of the 2025 tax year, including for existing loans).
• •  Personal property (household goods): either the contractually specified portion, or a flat rate of 2/5 of the total rent. A flat-rate expense allowance of 50% or the actual expenses may be deducted from this amount. The net rental income is taxed at a rate of 30%.

Do you offer additional services, such as breakfast or housekeeping, for which you charge an extra fee? If so, the net income from these services is taxable as Miscellaneous income to 33%.

The above assumes that you are renting to an individual who is not using the vacation home for business purposes.

Overseas home

For a property located abroad, the Belgian tax authorities have a notional cadastral income . The tax rules are otherwise similar to those for a Belgian residence. Under a double taxation treaty, the right to tax generally lies with the country where the property is located: rental income is then exempt from Belgian tax. Nevertheless, filing a Belgian personal income tax return remains mandatory, because Belgium applies the reservation regarding progression . This means that the exempt foreign income is taken into account when determining the tax rate on your other Belgian income.

Don't forget the inheritance law section Note: As a Belgian resident, your worldwide assets—including a foreign residence—are subject to Belgian inheritance tax. The country where the property is located typically also levies its own inheritance tax upon death, which may result in double taxation. All three regions provide for a tax credit: the inheritance tax paid abroad may be deducted from the Belgian inheritance tax applicable to that same property. This credit is limited to the amount of Belgian tax due on that property; any excess is not refunded.

At a donation In principle, no Belgian gift tax is due on the transfer of foreign real estate via a foreign notarial deed.

Given the complexity of overlapping Belgian and foreign regulations, Timely planning is crucial.

2.2 Btw

Whether VAT is due on the rent in Belgium depends on the following criteria, all of which must be met simultaneously, because in that case it constitutes VAT-taxable rental of furnished accommodations:

• •  Rental for a period of less than 3 months;
• •  There must be a minimum range of services, including at least one of the following: (i) a staff member present at the front desk for most of the day, (ii) linens provided upon arrival and changed after one week, and (iii) daily breakfast. Regular cleaning does not count.

Those who are not required to charge VAT are also not entitled to a VAT deduction on the expenses incurred. Those who do charge VAT may deduct VAT to the extent that the expenses relate to the VAT-taxable rental activity.

For a home located abroad, the following apply: local VAT rules of the country where the business is located, not Belgium. Registration as a VAT payer in that country may be required. The rates vary widely: from 7% in Germany to 21% in the Netherlands.

2.3 Tourist Tax

Municipalities can submit a local tourist tax file. The rates, method of collection, and exemptions vary by municipality. Generally, the landlord is responsible for filing the tax return and remitting the amounts collected. Check with the municipality where the vacation home is located in advance.

2.4 A Home Abroad: Things to Consider Before Buying

Anyone considering buying a vacation home abroad often encounters a number of financial considerations even before making the purchase. The transaction costs are significantly higher in many countries than in Belgium: in Spain or France, they can range from 10 to 15% of the purchase price. Furthermore, Belgian banks rarely accept foreign real estate as direct collateral, which often makes additional collateral in the form of a Belgian home or portfolio necessary. If you’re buying outside the eurozone, there’s also a exchange rate risk which affects both the purchase price and the subsequent proceeds in euros.