Company-Provided Housing in Belgium: Benefit in Kind Explained for HR

Company-provided housing in Belgium is, in principle, a taxable benefit in kind: when an employer gives an employee a place to live for free, the value of that housing is added to the employee's taxable remuneration. Belgium does not use the rent for this; it uses a flat-rate formula based on the property's cadastral income, with an uplift if the property is furnished. In Dutch the benefit is called voordeel alle aard (VAA), in French avantage de toute nature (ATN). This overview for HR and finance teams links to the payroll providers, advisers and official instructions it draws on. It is general information, not tax or legal advice; confirm the treatment for your own situation with your payroll provider or tax adviser.

When housing becomes a benefit in kind

Housing becomes a benefit in kind when the employer bears the cost of a home the employee lives in privately and the employee does not pay a market price for it. The question is whether the employee receives something of value as part of their remuneration.

Free use of real estate is one of the benefits with a statutory flat-rate valuation; free heating and electricity have their own flat rates (Securex).

How the flat-rate valuation works

The taxable value of free housing is the indexed cadastral income, multiplied by 100/60 and then by 2, with a further 5/3 multiplier if the property is furnished. The steps look like this:

1. Take the property's non-indexed cadastral income (kadastraal inkomen / revenu cadastral), the notional rental value the tax administration assigns to every property.

2. Multiply it by the indexation coefficient. For 2026 the coefficient is 2.3000, as confirmed in the social security instructions and by Securex (RSZ/ONSS administrative instructions 2026/3, Securex).

3. Multiply the result by 100/60, then by 2.

4. If the home is furnished, increase the amount by two thirds, which is the same as multiplying by 5/3 (Attentia).

The multiplier of 2 has applied since 1 January 2019, whether the housing is provided by a natural person or a legal entity. Before that, companies and private individuals were treated differently, including a 3.8 multiplier for some company-owned properties, and several courts found the difference discriminatory (Certifisc, Deknudt Nelis).

Illustrative calculation. Take a furnished apartment with a hypothetical non-indexed cadastral income of EUR 1,000. Indexed for 2026, that is EUR 2,300. Multiplied by 100/60 and by 2, it becomes about EUR 7,667 a year. With the furnished uplift of 5/3, the annual benefit is about EUR 12,778, or roughly EUR 1,065 a month. A real property's cadastral income can be much higher or lower.

In practice, payroll needs the cadastral income of the specific property before it can calculate anything.

Heating and electricity in 2026

If the employer also provides free heating and electricity, each is added as a separate flat-rate benefit, with a higher amount for management staff than for other employees. The 2026 amounts, per year:

Sources: RSZ/ONSS administrative instructions 2026/3, Attentia.

Since 1 January 2022, these flat rates can only be used when the party that provides the heating or electricity also provides the housing itself (Attentia, BDO). The amounts are indexed every year.

If the employee pays part of the cost

When the employee contributes towards the housing, the flat-rate benefit is reduced by the amount they pay. Securex states the rule in general terms for all flat-rate benefits: if the recipient contributes wholly or partly to obtain the benefit, the flat-rate amount is reduced by that contribution (Securex). If the employee pays at least the full flat-rate value, there is in principle no remaining taxable benefit for the housing.

A contribution only reduces the benefit it relates to. A payment towards rent reduces the housing benefit, not the heating or electricity benefit, so it is worth agreeing in writing what the employee is paying for.

The new 20% cap on flat-rate benefits

From income year 2026 (assessment year 2027), the total of flat-rate valued benefits in kind may not exceed 20% of total taxable remuneration. The measure comes from the law of 15 July 2026 reforming personal income tax, published in the Belgian Official Gazette on 29 July 2026 (Securex, Sodalis). EY describes the same start as "tax year 2027", which is the same period expressed as an assessment year (EY).

Three points matter for HR:

• Housing counts. Free housing, including the heating and electricity that come with it, is among the benefits covered, alongside company cars, IT equipment and interest-free loans.

• The test is collective. According to Securex and Sodalis, the 20% is measured across all employees together, and separately for company directors, not person by person.

• The cost falls on the employer. For employees, the part above the cap is subject to a separate 7.5% levy payable by the employer. For directors, exceeding the cap can cost the company its reduced corporate tax rate.

Social security: a different basis

Social security does not simply follow the tax formula. The NSSO (RSZ/ONSS) accepts the fiscal flat-rate valuation only in limited cases, such as housing for a caretaker in the building they look after. For housing with several rooms or a separate studio, the instructions say there is no flat-rate estimate and the NSSO bases itself on the real rental value of the property (RSZ/ONSS administrative instructions 2026/3).

For HR this means an apartment can carry one value for income tax and a different value for social security contributions. Ask payroll to confirm both before the first payslip.

Permanent housing versus temporary housing on assignment

Housing provided as a lasting part of the package is treated differently from housing needed because the job temporarily takes someone away from home. When an employee works in Belgium for a limited period, keeps their usual residence abroad and cannot reasonably commute, the housing may be treated as a professional cost rather than as a taxable benefit, provided it is realistic and in line with the market (Van Havermaet).

The same advisers recommend an advance ruling from the Belgian tax administration before relying on that treatment, ideally at the planning stage.

What to ask your payroll provider

These questions settle most of the treatment:

1. Is this a benefit in kind, or a cost proper to the employer because of a temporary assignment?

2. What is the cadastral income of the property, and does the furnished uplift apply?

3. Which heating and electricity category applies: management or other employees?

4. Will the employee contribute, and towards which part of the cost?

5. What value applies for social security contributions?

6. How does the benefit affect the company's position under the 20% cap?

How an all-in furnished apartment keeps costs predictable

A furnished Globexs apartment is paid through one all-in monthly invoice, so the housing cost for the whole stay is known before the employee arrives. Energy is included with no cap in euros, which means a cold winter or a long working-from-home period does not change the bill.

Stays run from 1 to 11 months, extensions take one email, and if the person changes, a colleague can take over the same contract through an addendum. Check-in can happen the same day or the next day after the contract is signed and the transfer arrives. Prices start at EUR 1,300 a month in Antwerp, EUR 1,500 in Brussels and EUR 1,000 in Ghent.

For the offer across the three cities, see corporate housing across Belgium; for an Antwerp placement, the corporate housing guide for HR in Antwerp. If the employee will register at the address, read registering with the commune in Belgium.

Frequently asked questions

Is company-provided housing taxable in Belgium?

In principle, yes. Free housing provided by an employer is a benefit in kind added to taxable remuneration. The main exception to discuss with an adviser is temporary housing needed because of a limited assignment away from the employee's usual home.

How is the benefit in kind for housing calculated?

The indexed cadastral income of the property is multiplied by 100/60 and then by 2. For 2026 the indexation coefficient is 2.3000. If the property is furnished, the result is multiplied by 5/3.

Does the rent the employer pays matter?

The flat-rate formula is based on the cadastral income, not on the rent. Whether the flat rate applies in your specific case, for example when the company rents rather than owns the property, is worth confirming with your payroll provider.

What are the heating and electricity amounts for 2026?

For management staff and directors, EUR 2,560 a year for heating and EUR 1,280 for electricity. For other employees, EUR 1,150 and EUR 580. These flat rates apply only when the same party also provides the housing.

What happens if the employee pays part of the rent?

The taxable housing benefit is reduced by what the employee pays. The contribution only reduces the benefit it relates to, so a rent contribution does not reduce the heating or electricity benefit.

When does the 20% cap on flat-rate benefits start?

It applies from income year 2026, which is assessment year 2027, under the law of 15 July 2026. It is measured across all employees together, and any excess for employees triggers a 7.5% levy for the employer.

Is the housing benefit subject to social security contributions?

Yes, but the value can differ from the tax value. For an apartment, the NSSO uses the real rental value rather than the fiscal flat rate.

Can Globexs advise on the tax treatment?

No. Globexs provides furnished apartments with one all-in monthly invoice, which gives payroll a stable figure to work with. The tax and social security treatment should be confirmed with your payroll provider or tax adviser.

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Globexs has worked with companies placing staff in Belgium since 2002. It was founded in Antwerp by Belgian entrepreneur Lodewijk Cuypers and today lists 135 furnished properties in Brussels, Antwerp and Ghent.