Increased monitoring of rental income from foreign holiday homes on Airbnb

Holiday homes in Belgium

When renting out a holiday home in Belgium, it is important to distinguish between income from immovable property and income from movable assets. If the property is rented to an individual (natural person), the taxable base is calculated by increasing the indexed cadastral income by 40%.

Movable income pertains to the rental of furniture. The value of this furniture can be determined in two ways: either specified in the rental agreement or split proportionally in a standard manner. Legally, the rental income is divided at a ratio of 60% for real estate income and 40% for movable income.

Holiday homes abroad

As a Belgian resident taxpayer, you must pay taxes in Belgium on your worldwide income, including rental income from foreign holiday homes. The taxes due depend on the existence of a double tax treaty.

According to the model agreement, immovable income is taxed in the country where the property is located (the source state). In Belgium, such income can be exempted under certain conditions, with progression reserve.

For movable income, the situation is more complex. Some countries distinguish (for furniture) between movable and immovable income, while others classify everything under immovable income. If a distinction is made, Belgium can tax the movable income. If not, the source state taxes the total income, and Belgium grants an exemption with progression reserve.

Tax control

The Belgian tax authorities assume a split between movable and immovable income, taxing movable income in Belgium. However, not all countries use the same approach. For example, in France, all rental income, including that from furniture, is considered immovable income and fully taxed. This can lead to double taxation.

Do you have questions about renting out foreign real estate? Our specialists are happy to assist you.