Is it still possible to use real estate owned by your company for personal use?
This remains a common question among business owners:
Can I still use real estate owned by my company for personal purposes?
The answer is: yes, it’s still possible, but only if you do it correctly. These days, the tax authorities scrutinize the rationale and documentation behind such arrangements much more closely.
Free housing = benefit in kind
If you, as a company manager, live rent-free in a property owned by your company, this is considered a benefit in kind (BIK).
That benefit is taxed according to a fixed formula:
indexed cadastral income × 100/60 × 2
For your company, the home constitutes compensation in kind. The costs incurred by the company for the purchase or use of the home (for example , through a usufruct arrangement) are deductible payroll expenses — provided, of course, that the tax authorities approve your compensation policy.
The theory of compensation called into question
The tax authorities do not automatically accept this deduction.
Your company must be able to demonstrate why you, as a manager, are entitled to that compensation in the form of housing.
In other words:
What services do you provide to the company?
And how does this benefit fit into your overall compensation package?
Without that documentation, you risk the property expenses not being tax-deductible.
Special attention to usufruct arrangements
In the case of a usufruct arrangement (where the company holds only the usufruct, and you hold the bare ownership privately), the bar is set even higher.
The tax authorities often argue that, in the long term, the company will no longer derive any income from the property—because the usufruct will expire, and the property will pass entirely to you.
That is why strong motivation and documentation are essential.
What does the case law say?
The Court of Cassation has confirmed that, in principle, a company may deduct expenses incurred in providing its manager with a benefit in kind—
—but only if this benefit constitutes consideration for services actually rendered.
So the message is clear:
It is possible, but you must be able to justify and document it.
Good documentation is crucial
Recent case law shows that thorough preparation makes all the difference.
Anyone who can clearly demonstrate that the housing is part of the compensation policy is in a much stronger position.
In practical terms, this means:
Develop a clear compensation policy in which housing is included as part of the compensation package;
Record this in a compensation report;
Let the general meeting approve this;
Be sure to report the benefit in kind correctly on your tax return.
This demonstrates that the home is a genuine part of your compensation, and not merely a benefit received without providing anything in return.
Decision
You can still enjoy the benefits of real estate held by your company for personal use,
but it requires more attention and justification than it used to.
With a well-founded compensation policy and clear documentation, you can minimize tax risks while retaining the benefits.
