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Tax on furnished property

Question

Why does every other poster on this forum claim letting furnished property is taxed higher than unfurnished? I spoke to a notary this morning who has never heard of any such distinction and there is no info at all online about it on any government webpage. Even googling the relevant search terms in English, French and Dutch gets no hits - apart from the Q&A section here. Is the tax simply called something else or are people just trolling? It's obviously an important decision so I want to make sure I get it right. Thanks

From the archives

Oh good - looks like the admin is back off holidays.

http://www.belgium.be/fr/impots/impot_sur_les_revenus/particuliers_et_in...

"Si le locataire occupe le bien à titre de logement, c'est le revenu cadastral qui sera pris en compte. Il sera indexé, majoré de 40 % et ajouté aux autres revenus."

So the tax you pay is based on the RC + 40%. So for a property with €1000 RC, you will pay tax on €1400.

If furnished:
"Si un loyer "meubles" n'a pas été défini dans le bail, l'administration fiscale considère qu'il correspond à 40 % du loyer total. C'est ce montant qui doit être déclaré."

So you still get taxed on the RC, but you ALSO get taxed on 40% of the actual rent received.

I could be wrong in my interpretation of the detail, but I amd in no doubt that "letting furnished property is taxed higher than unfurnished".

Aug 23, 2011 14:02