When you are self-employed in Belgium, you may incur rental costs for buildings, offices, workspaces, and similar spaces you use in your activity. Whether these costs are deductible depends strongly on the type of rental contract you have and how the premises are used (dedicated office, shared with private use, etc.).
Broadly speaking, two types are distinguished:
A commercial lease / rental contract (for business premises, wholly for professional use)
A normal residential rental contract (for living accommodation or a home-office overlap)
The distinction matters because the tax authority treats them differently: how the contract describes the use, whether the landlord declares the income as commercial or residential, and how much of the space is professional versus private.
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 the rules for commercial leases, residential leases with a home office, how to record your rent in Accountable, and key practical rules to stay compliant.
1. Commercial rental contract
1.1. When a contract is clearly for business premises
If you rent a dedicated workspace (office, business premises) under a contract that clearly states business use, you are in a straightforward situation. You can treat the rent as a fully deductible business expense. Keep the contract, invoices, and bank payment records as proof.
The owner of a property that is used professionally is taxed on the actual rental income. In other words, they have to pay more taxes on rental income in the latter case.
If the landlord is a company, there rental income will be taxed under the company tax.
1.2. Deductible expenses beyond rent
When you operate your business from commercially rented premises, most professional expenses related to the space are fully deductible, as the premises are used exclusively for business purposes.
Utilities: water, gas, electricity, heating
All utility costs linked to the commercial premises are fully deductible. Keep invoices and proof of payment.
Internet, telephone, software, equipment
Internet and telephone: the full cost is deductible since the contract relates to professional premises.
Software and office equipment: laptops, screens, desks, ergonomic chairs, and similar items are all fully deductible when used for professional purposes. Items such as lamps, plants, waiting-room furniture, decorations, or anything that enhances the professional workspace are also fully deductible.
Insurance for equipment: fully deductible.
2. Residential rental contract
2.1. When you rent part of your home (home office)
Things get more complex when you use part of your rented home for work. The key questions are: does the contract allow professional use? What share of the surface is used professionally versus privately? The tax authority expects clarity.
If you rent your home, you CANNOT deduct your rent unless a portion of it is designated for professional use and this is stipulated in your rental agreement. This is because the landlord is taxed differently on that portion of the income.
If you deduct your rent as an expense, this impacts the way your landlord is taxed. For the rental of a private home, the landlord is taxed on the indexed cadastral income (‘revenue cadastral’ (RC) / ‘kadastrale inkomen’ (KI)) of the property, which is essentially a fictitious annual net rental value for the property, established by the government.
In practical terms:
The lease must explicitly state the portion of the premises used for professional activity and the portion for private use.
You can only deduct the portion of the rent that corresponds to professional use.
If the contract or registration is not properly completed, the deduction may be refused and you risk a tax audit.
If the contract is purely residential and does not allow professional activity, you cannot deduct your rent as a business expense. This is not permitted.
You would need to inform your landlord and obtain written permission allowing professional use of the property.
If you don’t have this permission, you cannot deduct from the rent.
2.2. Deductible expenses beyond rent
For self-employed persons working from home, expenses must be deducted proportionally to the professional use of the space.
Utilities: water, gas, electricity, heating
You may deduct utility expenses in proportion to the surface area allocated to your home office. Example: if the office represents 15% of your home's total area, you may deduct 15% of utilities.
Internet, telephone, software, equipment
Internet: deductible according to the percentage of business use.
Example: 5 working days out of 7 → 5/7 deductible.Office furniture and equipment: deductible if used for professional purposes (laptop, screen, desk, ergonomic chair). Other items that support the home office (lamps, plants, small furniture) are also deductible to the extent they serve the professional workspace.
Insurance for equipment: deductible in proportion to professional use.
3. How to record your rent in Accountable
If you pay the rent for the private and professional parts of the property together, specify the separate amounts in the communication of your bank transfer. Once this is done, download the monthly payment record and upload it under the category "Workspace → Rent" for the amount corresponding to professional use.
This type of expense is exempt from VAT, so select 0% VAT with the reason "This item is exempt from VAT."
For a commercial rental contract, you can encode the monthly payment record in the same way as described above.
4. Key practical rules
Document clearly: the contract must show what portion is for professional use, the professional part of the rent, etc.
Surface area ratio: when part of your home is used for business, calculate (sqm for business ÷ total sqm) and apply that ratio to costs. The tax authorities may inspect.
Registration obligations: since 2024 (for 2023 income) there is a new annex (form 270 MLH) to complete when deducting rental costs. See the form 270 MLH on the Belgian tax authority website for more information.
Landlord's tax consequences: if your deduction triggers a shift from residential to business rental income for the landlord, this may cause resistance. Always check the contract clause.
Avoid audit risk: claiming a large deduction for professional use of residential premises without solid documentation may attract tax-authority scrutiny. Make sure your documentation is complete before filing.
Summary table
Situation | Rent deductible? | Conditions | Typical deductible share |
Dedicated business premises (commercial lease) | Yes, generally 100% | Contract is for business use, no significant private share | ~100% of rent |
Home office rented under a contract that recognises business use | Yes, but only the professional portion | Contract includes a business-use clause, measurable ratio of business space, landlord is aware | Ratio applying to professional part (often up to 15% suggested) |
Home rented under a normal residential lease without a business-use clause | No (or high risk) | Contract and landlord do not recognise business use | Zero (or disallowed) |
Key takeaways
A commercial lease for a dedicated workspace makes rent and related costs fully deductible.
With a residential lease, you can only deduct the portion of rent and costs that corresponds to your professional use, and only if the contract explicitly states this.
Record rent in Accountable under Workspace → Rent, selecting 0% VAT (exempt).
Since 2024, deducting rental costs requires completing the form 270 MLH annex with your tax declaration.
Always keep solid documentation: the contract, invoices, and proof of payment. Insufficient documentation increases audit risk.
Need help? Chat with us or email support@accountable.eu, we're happy to help.