How am I taxed on my Meeting-out income in Belgium?
As Benjamin Franklin once said, there are only two certainties in life: death and taxes. Fortunately, we’re only talking about the latter in this case.
Although Meeting-out is a fantastic way for individuals to generate passive income, you will still have to pay taxes on (a small portion of) that income. However, the good news is that if you fill out your tax return correctly, you will be taxed a maximum of only 20% on that income.
Below, we explain in detail how to handle your tax return.
What do you need?
- Numbers provided by Meeting-out:
- The number of days you rented out on Meeting-out per year
- The total income you earned via Meeting-out per year
- Numbers you need to provide:
- The cadastral income (KI) of your property
- The size of the rented portion relative to your entire property (default is 20% on Meeting-out)
Calculate your Rentable Cadastral Income
Now, calculate your gross Rentable Cadastral Income using the figures above:
= KI Property X Size of Rented Portion X Number of Days
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- KI Property = The cadastral income of your property
- Size of Rented Portion = 20% (portion of your property available)
- Number of Days = The number of days you rented out per year
Single or do you have a partner?
- If you have a joint tax return (married or legally cohabiting), fill in 2 columns.
- We provide the tax codes for both cases below. We use the term single code for singles and joint code for those who are married or legally cohabiting.
The fine print
- The amount of taxes you have to pay depends on various factors. However, the 20% described above is the absolute maximum, provided that you follow the guidelines given.
- In certain cases, such as “my partner has no work” or “I have a low income”, that percentage will be lower.
- The calculations below apply only to individuals who rent out on Meeting-out.
2 types of taxes
Your property is real estate, but the furniture in it is movable property. Therefore, renting out (a portion) of your furnished property on Meeting-out is subject to 2 separate taxes:
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- 70% of the income falls under real estate income
- 30% of the income falls under movable income
Real estate income (70%)
- Single codes for real estate income:
- 1109-55 Rentable Cadastral Income
- 1110-54 Gross Rent * 0.7
- Joint codes for real estate income:
- 1109-55 + 2109-25 Rentable Cadastral Income * 0.5
- 1110-54 + 2110-24 (Gross Rent / 2) * 0.7
*Did you know that the gross rent takes into account 40% costs? So, in reality, only 60% tax is calculated on the figure in 1110-54. This is done automatically by Tax-on-Web.
Movable income (30%)
- Single codes for movable income:
- 1156-08 Gross Rent * 0.3 * 0.5
- Joint codes for movable income:
- 1156-08 Gross Rent * 0.3 * 0.5 * 0.5
- 2156-75 Gross Rent * 0.3 * 0.5 * 0.5
*Did you know that no costs are taken into account here? Unlike real estate, you must include 50% costs yourself (the program does not do this automatically). Hence, the last 0.5 factor in the formula above.
A simulation
- You rented out a part of your home on Meeting-out for 10 days this year and earned 1600 euros.
- The cadastral income of your home is 1200 euros.
- Rented Cadastral Income = 1200 X 0.2 X (10/365) = 6.58
Single
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- 1109-55 6,58
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- 1110-54 1600 * 0.7 = 1120
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- 1156-08: 1600 * 0.3 * 0.5 = 240
Common
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- 1109-55 6,58 / 2 = 3,29
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- 2109-25 6,58 / 2 = 3,29
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- 1110-54 1600 * 0.7 * 0.5 = 560
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- 2110-24 1600 * 0.7 * 0.5 = 560
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- 1156-08: 1600 * 0.3 * 0.5 * 0.5 = 120
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- 2156-75: 1600 * 0.3 * 0.5 * 0.5 = 120
After the tax calculation, in this simulation, you end up with 1600 * 0.21 = 1264 euros net income for renting out a part of your home for a meeting for 10 days per year. That’s worth considering, isn’t it?
Did this blog give you an extra push to start renting out your property on Meeting-out? Let’s do it! Because if you join now, besides the impressive passive income, you can enjoy these 5 early-bird benefits.
