What is depreciation?
When you buy a major asset like a building, machine, or computer, you cannot deduct the full cost in one go. Because you will use it for several years, the cost is spread over its useful life. This is called depreciation.
In short: each year, you deduct part of the purchase price from your taxable income.
Please note that this article provides general guidance only. Tax rules may vary depending on your individual situation. When in doubt, ask your Tax Coach.
This article covers what you can and cannot depreciate when buying real estate, how to split the value between land and building, and how to record everything in Accountable.
What can you depreciate (and what can't you)?
✅ The part of the building used for professional purposes:
If you buy a property and use it for work, only the business-related portion can be depreciated. For example, if your home office takes up 25% of your house's surface area, you can only depreciate 25% of the building.
❌ The land:
Land does not wear out, so it cannot be depreciated. Only the building itself is depreciable.
How do you split the value between building and land?
When you buy real estate, the price usually includes both the land and the building. Because only the building can be depreciated, you need to split the total cost between the two.
There is no strict legal rule in Belgium, but here are some tips:
🧮 Make a reasonable and objective estimate. You can hire a surveyor (géomètre-expert) to determine the value of the land and the building separately.
📝 Include this breakdown in the deed of sale. It will strengthen your position if the tax authorities ever question your depreciation.
📉 The lower the land value, the more you can depreciate. Be careful: if the land is valued unrealistically low, it could raise questions during an audit.
Can the tax authorities challenge your split?
Yes, they can. They may propose a different allocation, usually assigning a higher value to the land, which would reduce your depreciation. However, they cannot simply compare your land to a vacant plot: a built-on plot usually has a lower standalone value.
That is why having an expert report is useful: it demonstrates that your figures are fair and accurate.
In summary
✅ You can depreciate the professional portion of the building |
❌ You cannot depreciate the land |
🌍 You are responsible for allocating the purchase price between land and building |
👨💼 A professional valuation can help justify your depreciation if needed |
How does it work in Accountable?
For example, let's say you made a purchase for €200,000:
💶 Land value: €60,000
🏠 Building value: €140,000
1. Create a new expense by clicking on "Upload a new expense".
2. Click on 📁 "Select a file or a folder".
3. Import your supporting documents (the deed of sale or the notary's invoice).
📜 It is essential that the notarial deed or purchase documents clearly specify the price breakdown between the land value and the building value.
4. Select the category 🏷️ "Land and construction", then choose:
🟩 "Land" for the land portion (not depreciable)
✍️ Fill in all the relevant information and amounts for the land.
5. Then add an item by clicking on ➕ "Add an item".
6. Select the category 🏗️ "Built land" for the building value (with linear depreciation, generally over 20 to 33 years, depending on the type of construction).
✍️ Fill in all the relevant information and amounts for the building.
7. Make sure to indicate the correct percentage of professional use.
📊 This determines how much of the expense is deductible.
8. Click on 💾 "Save".
⚠️ Reminder:
Notary fees canbe depreciated!
The recommended category for notary fees is: "Legal & other fees" > Legal fees"
Key takeaways
You can depreciate only the professional portion of the building, not the land.
You must split the purchase price between land and building: only the building portion is depreciable.
A professional valuation (géomètre-expert) strengthens your position with the tax authorities.
In Accountable, record land under "Land" (not depreciable) and the building under "Built land" (linear depreciation over 20 to 33 years).
Always indicate the correct percentage of professional use to determine the deductible amount.
Need help? Chat with us or email support@accountable.eu, we're happy to help.