The provision of free company accommodation by an employer, in connection with the professional activity of an employee or manager, constitutes a benefit in kind. This benefit, which is often offered to caretakers and building wardens, is taxable in the hands of the beneficiary. In the absence of specific regulations determining its value, the benefit is set at a flat rate based on the indexed cadastral income of the company accommodation or the portion of the building made available.

The provision of company housing by an employer, in connection with an employee's professional activity, constitutes a benefit in kind that is taxable in the hands of the beneficiary. The value of the benefit is set at a flat rate based on the indexed cadastral income of the property.

For the benefit to be assessed on a flat-rate basis, it is essential that the premises are made available under a lease agreement drawn up in the employer's name. If the rent is paid directly by the employer under this contract, the employer's involvement is not considered to be a benefit in kind. On the other hand, if the benefit is granted in the form of a cash payment to the employee, it will be included in full in the employee's taxable income.

Valuation of the benefit before 1 January 2019
Until 31 December 2018, the valuation method varied depending on whether the company accommodation was provided by a natural person or a legal entity:

• For the provision of company accommodation by an individual :
  
  
  • For a built property, the benefit was equivalent to 100/60 of the indexed cadastral income.
  • For undeveloped property, the calculation was based on 100/90 of the indexed cadastral income.
• If the company accommodation is made available by a legal entity :
  Increases could be applied according to the level of cadastral income:
  
  
  • If the ROCE was less than €745.00, the benefit was set at 100/60 of the ROCE multiplied by 1.25.
  • If the ROI exceeded €745.00, the benefit was then valued at 100/60 of the ROI multiplied by 3.8 (since 1 January 2012).

However, this differentiation in the calculation of the benefit according to the nature of the housing provider (natural person or legal entity) was deemed unconstitutional by case law. As a result, the FPS Finance has standardised the valuation for housing provided by legal entities at 100/60 of the indexed ROI.

Valuation of the benefit from 1 January 2019
For benefits granted from 1 January 2019, the law has been adapted to eliminate the previous disparities:

• For a built property or part thereof, the taxable benefit is 100/60 of the indexed cadastral income multiplied by 2.
• For undeveloped property or part of it, the benefit is set at 100/90 of the indexed cadastral income.

Special cases: Furnished accommodation and real needs

• Furnished accommodation :
  Where company housing is furnished, the value of the benefit in kind is determined as described above and then increased by two-thirds. This increase reflects the additional cost of the furnishings and equipment provided.

• Actual requirements :
  If the value of the property made available clearly exceeds the personal needs of the beneficiary, taking into account his or her social situation and the composition of his or her household, the assessment of the taxable benefit may be adjusted to take into account only the part corresponding to the real needs of the employee or manager. The assessment criteria include living area, number of rooms, location, type of dwelling and level of equipment. For example, a bank branch manager who has to live in a flat above the branch, or a security guard who has to live close to his or her place of work, will have their benefit assessed taking account of these professional imperatives.

Specific cases

• Presbyteries :
  Priests are legally obliged to occupy premises made available by local authorities. In this case, the benefit is considered to be taxed, as the occupation is linked to a legal obligation.

• Concierge services :
  In certain contexts, the accommodation made available to caretakers may have a high cadastral income. If such accommodation clearly exceeds the needs of the caretaker and his/her family, the taxable benefit will be assessed on the basis of the ROI of the property, corresponding to the actual needs of the beneficiary.

Annual update
Finally, the amount of the taxable benefit is revised each year according to the indexation coefficient for cadastral income. For the 2025 income year, this coefficient is set at 2,2446, This means that the amount of the benefit is updated annually.

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