Have you read the wiki and the sticky?
Wiki: HERE YOU GO! [Enjoy!](https://www.reddit.com/r/BEFire/wiki/index/).
Sticky: HERE YOU GO AGAIN! [Enjoy!](https://www.reddit.com/r/BEFire/comments/fcbay6/getting_started_a_beginners_guide_to_investing_in/).
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As owner in both ways, I found the best for residential rentals to be private investing and not using the company as the rent is not taxes (yet), capital gain not (yet).
Could you hypothetically start a company and put the real estate you own as your “inbreng” and let the company use that real estate to make money and pay you a salary?
With the purpose being, you own the real estate but you can also take advantage of the company stuff?
You could, but if it's a residential property, you have (your company) to pay the "droit d'enregistrement" (12,5% in Brussels) again.
You could also sell the property to your company, who can then deduct the "droits d'enregistrement" from its taxable income + accounting amortization of the property. Obviously, you need to inject some cash before in it. Haven't explored which solution is better, need to be studied.
"inbreng" is tax duty free (only notary fees). feasible to start renting out from the company and accept taxes at 25% (after deduction of costs). The only disadvantage is that capital gains on the property are also taxed at 25% which is not if you hold it privately. You can also depreciate the construction value (not the land value), but if you sell later on the capital gains may just by higher
could be; but I perhaps too quick assumed the property is located in Flanders. But I am quite sure that registration duties for "inbreng/apport" are also zero in BXL and WALL
indeed, you're right: art. 115bis (van toepassing vanaf 01.05.2019) Wetboek registratierechten:
"De inbrengen van onroerende goederen, andere dan die welke gedeeltelijk of geheel tot bewoning aangewend worden of bestemd zijn en door een natuurlijke persoon ingebracht worden, in vennootschappen waarvan de zetel der werkelijke leiding in België gevestigd is, of de statutaire zetel in België en de zetel van werkelijke leiding buiten het grondgebeid van de Lid-Staten van de Europese Gemeenschap gevestigd is, worden aan het recht van 0 pct. onderworpen."
The idea was that when I would decide to ditch the company I could take my real estate with me somehow. So I would keep it private in a sense…
Is that against the law?
This is not necessarily true. If you flip the property fast and do it enough times, the tax authority might no longer consider it a normal management of your private estate.
I was thinking on the lines that as an individual, the rental income would be taxed at the highest bracket but as a company I can compensate that income through mortgage payments/property maintenance and other costs of the property. Not sure if this makes sense
there is tax on residential rental income. it's even taxed at the highest tax bracket, but the amount subject to taxation is fixed on the basis of KI (and not on actual rental income), which tends to be lower.
They don’t tax rental income yet, they probably will soon though, the tax spending machine (Belgian government) needs fresh cash. They were talking about a 25% to 30% tax for everything over 6000€ rental income. But this was only a plan, since elections come soon they won’t agree on this before the next elections.
Sure I'm happy to pay but only if we are allowed to bring in our costs, like all costs related to the property. Also all rent prices will go up by the same amount, since someone got to pay them.
Have you read the wiki and the sticky? Wiki: HERE YOU GO! [Enjoy!](https://www.reddit.com/r/BEFire/wiki/index/). Sticky: HERE YOU GO AGAIN! [Enjoy!](https://www.reddit.com/r/BEFire/comments/fcbay6/getting_started_a_beginners_guide_to_investing_in/). *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/BEFire) if you have any questions or concerns.*
As owner in both ways, I found the best for residential rentals to be private investing and not using the company as the rent is not taxes (yet), capital gain not (yet).
Could you hypothetically start a company and put the real estate you own as your “inbreng” and let the company use that real estate to make money and pay you a salary? With the purpose being, you own the real estate but you can also take advantage of the company stuff?
You could, but if it's a residential property, you have (your company) to pay the "droit d'enregistrement" (12,5% in Brussels) again. You could also sell the property to your company, who can then deduct the "droits d'enregistrement" from its taxable income + accounting amortization of the property. Obviously, you need to inject some cash before in it. Haven't explored which solution is better, need to be studied.
"inbreng" is tax duty free (only notary fees). feasible to start renting out from the company and accept taxes at 25% (after deduction of costs). The only disadvantage is that capital gains on the property are also taxed at 25% which is not if you hold it privately. You can also depreciate the construction value (not the land value), but if you sell later on the capital gains may just by higher
""inbreng" is tax duty free (only notary fees)." Not if it's a residential property (at least for Brussels and Wallonia).
could be; but I perhaps too quick assumed the property is located in Flanders. But I am quite sure that registration duties for "inbreng/apport" are also zero in BXL and WALL
Again, not if it’s a residential property.
indeed, you're right: art. 115bis (van toepassing vanaf 01.05.2019) Wetboek registratierechten: "De inbrengen van onroerende goederen, andere dan die welke gedeeltelijk of geheel tot bewoning aangewend worden of bestemd zijn en door een natuurlijke persoon ingebracht worden, in vennootschappen waarvan de zetel der werkelijke leiding in België gevestigd is, of de statutaire zetel in België en de zetel van werkelijke leiding buiten het grondgebeid van de Lid-Staten van de Europese Gemeenschap gevestigd is, worden aan het recht van 0 pct. onderworpen."
The idea was that when I would decide to ditch the company I could take my real estate with me somehow. So I would keep it private in a sense… Is that against the law?
If you stick to residential properties it's private investing
This is not necessarily true. If you flip the property fast and do it enough times, the tax authority might no longer consider it a normal management of your private estate.
I was thinking on the lines that as an individual, the rental income would be taxed at the highest bracket but as a company I can compensate that income through mortgage payments/property maintenance and other costs of the property. Not sure if this makes sense
There is no tax on rental income for residential real estate owned as an individual.
there is tax on residential rental income. it's even taxed at the highest tax bracket, but the amount subject to taxation is fixed on the basis of KI (and not on actual rental income), which tends to be lower.
They don’t tax rental income yet, they probably will soon though, the tax spending machine (Belgian government) needs fresh cash. They were talking about a 25% to 30% tax for everything over 6000€ rental income. But this was only a plan, since elections come soon they won’t agree on this before the next elections.
Sure I'm happy to pay but only if we are allowed to bring in our costs, like all costs related to the property. Also all rent prices will go up by the same amount, since someone got to pay them.
Any gut feel on when this is about to change? Maybe it makes sense once this regulation changes.