What is depreciation?
When you buy a major asset (like a building, machine, or computer), you can’t deduct the full cost in one go. Since you’ll use it for several years, the cost has to be spread over time — this is called depreciation.
In short: each year, you will deduct part of the purchase price from your taxable income.
What can you depreciate (and what can’t you)?
✅ The part of the building used for professional purposes:
If you buy a property and use it for work, only the business-related portion can be depreciated. For example, if your home office takes up 25% of your house’s surface, you can only depreciate 25% of the building.
❌ The land :
Land doesn’t wear out, so it can’t be depreciated. Only the building itself is depreciable.
How do you split the value between building and land?
When you buy real estate, the price usually includes both the land and the building. Since only the building can be depreciated, you need to split the total cost between the two.
There’s no strict legal rule in Belgium, but here are some tips:
🧮 Make a reasonable and objective estimate. You can hire a surveyor (géomètre-expert) to determine the value of the land and the building separately.
📝 Include this breakdown in the deed of sale. It will strengthen your case if the tax authorities ever question your depreciation.
📉 The lower the land value, the more you can depreciate. But be careful — if the land is valued unrealistically low, it could raise red flags during an audit.
Can the tax authorities challenge your split?
Yes, they can. They might suggest a different allocation, usually assigning a higher value to the land (which would then reduce your depreciation). But they can’t just compare your land to a vacant plot — a built-on plot usually has a lower standalone value.
That’s why having an expert report is useful: it shows that your numbers are fair and accurate.
In summary :
✅ You can depreciate the professional portion of the building |
❌ You cannot depreciate the land |
🌍 You are responsible for allocating the purchase price between land and building |
👨💼 A professional valuation can help justify your depreciation if needed |
How does it work in the Accountable app?
For example, let’s say you made a purchase for €200,000:
💶 Land value: €60,000
🏠 Building value: €140,000
1. Create a new expense by clicking on “Upload a new expense”.
2. Click on 📁 "Select a file or a folder"
3. Import your supporting documents (the deed of sale or the notary's invoice).
📜 It is essential that the notarial deed or purchase documents clearly specify the price breakdown between the land value and the building value.
4. Select the category 🏷️ "Land and construction", then choose:
🟩 "Land" for the land portion (not depreciable)
✍️ Fill in all the relevant information and amounts related to the land.
5. Then add an item by clicking on ➕ "Add an item"
6. Select the category 🏗️ "Built land" for the building value (with linear depreciation — generally over 20 to 33 years, depending on the type of construction).
✍️ Fill in all the relevant information and amounts related to the building.
7. Make sure to indicate the correct percentage of professional use
📊 This determines how much of the expense is deductible.
8. Click on 💾 "Save"
⚠️ Reminder: |
Need help managing depreciation or your taxes? Contact us !