AirBnB is now a well-known concept. For landlords, it is the ideal way to earn a penny on the side by renting out a room in surplus or their home during their holidays while meeting new people. For tourists, it represents a special way to visit one of the many world cities they have on their travel bucket list.
Which regulations apply?
The regulations differ depending on whether the room is rented out in Flanders, Brussels or Wallonia. Anyone renting out a room or house in Flanders must comply with the regulations in the decree of 5 February 2016 on tourist accommodation.
This decree applies to any establishment that offers one or more tourists the opportunity to stay for one or more nights and is offered publicly by any means. If one does not make one's guest room or residence known to the general public by, for example, only renting it out to family or friends, one does not have to comply with the obligations imposed by the decree.
In contrast, promoting and renting out a room or property through a website such as AirBnB does fall within the scope of this decree.
It is important to realise that these basic rules apply to everyone, even those who merely rent out a sofa bed in their living room. Anyone who runs an AirBnB without respecting the decree regulations risks fines ranging from €250 to €25,000.
Report to tourism vlaanderen
Since the decree of 5 February 2016 came into force, a licence no longer needs to be applied for and obtained before one can put rooms or a property up for rent through websites such as AirBnB.
However, you must inform Tourism Flanders of the operation of your tourist accommodation via this website.
The reporting requirement ensures that the providers of guest rooms or dwellings can be easily identified should problems arise in relation to fire safety, hygiene, etc.
The operator of a tourist accommodation may also voluntarily apply for recognition by Tourism Flanders. Recognition is obtained if an on-site inspection shows that the tourist accommodation satisfies all the conditions stipulated in the decree (notification to Tourism Flanders, fire safety standards, civil liability insurance, etc.).
Fire safety standards
A first important additional condition is that the tourist accommodation must comply with the specific fire safety standards set by the Flemish government in a Decree of 17 March 2017.
A lodging house with fewer than 6 rental units and with fewer than 13 beds must comply with the following fire safety standards:
The rental unit should have at least two evacuation possibilities in case of fire (the first possibility being the normal exit). As a second evacuation possibility, it is sufficient, for example, that there is a window or terrace that can be reached by the fire brigade's aerial platform and serve as an exit route. Evacuation routes should be safely constructed, clearly signalled and kept clear without obstructions.
The tourist accommodation must be separated from adjacent buildings, other tourist accommodation and the other parts of the building not related to the tourist accommodation by walls with a fire resistance EI 60 (E = flame density, I = thermal insulation, the number refers to the duration of fire resistance) or made of masonry or concrete. Passages in those walls should have self-closing doors with a fire resistance EI 30. These standards are listed on the side of the fire-resistant doors.
The conformity of the electrical installation with current legislation must be able to be demonstrated by a valid inspection report delivered by an external technical inspection body.
The safe condition of the heating installation and gas supply pipes must be able to be demonstrated with a certificate issued by a qualified technician.
On the route between the entrance door of the tourist accommodation and the sleeping place, each room (including the sleeping place itself) must be equipped with at least one autonomous fire detector complying with standard EN 14604.
At least one foam or powder fire extinguisher with a capacity of at least 6 l/kg must be available per 150 m². These fire extinguishers must be placed in the tourist accommodation or in its immediate vicinity.
Finally, it is mandatory to make the following data available in each rental unit:
instructions in case of fire in Dutch, French, German and English;
Plan indicating the location of the rental unit in relation to evacuation options;
international emergency number 112;
contact details of the person to be contacted in case of emergency.
For specific cases where the fire safety standards prove to be too strict, the regulations leave room for exceptionally still obtaining a fire safety certificate without all conditions having to be met. In this way, the necessary flexibility is maintained for private individuals wishing to rent out a room.
In this context, it should not be forgotten that insurance contracts covering civil liability often stipulate that the insurer will not intervene if statutory standards have not been met.
In other words, if a fire were to occur causing tenants to suffer damages while not complying with the statutory fire safety standards, the insurance company will refuse to intervene. Therefore, it cannot be stressed enough the importance of complying with prescribed fire safety standards.
Furniture and spaces
Furthermore, each rental unit should contain at least the following furniture and items: a bed with mattress and pillow, a provision for storing clothes, a free socket, possibility of lighting and ventilation, curtains or similar provision to darken the room, a bath or shower, a toilet, a washbasin and a washbasin mirror.
In addition, the decree explicitly prescribes that the accommodation areas accessible to tourists must be sufficiently clean and maintained.
Insurance to cover civil liability, legal title and certificate of good conduct and morals
The operator of an AirBnB must also have insurance covering civil liability for all damages in the operation of the accommodation and a property deed or rental agreement authorising him to operate the tourist accommodation.
Finally, the operator of an AirBnB must be able to provide a certificate of good conduct and morals.
Tax treatment of income
The advance of the AirBnB concept did not escape the eye of the tax administration. Because landlords often failed to declare the income they obtain from renting out a room or house, the Belgian Internet Service centre, a specialised unit within the Tax Inspectorate, was tasked with tracking down landlords of guest rooms or houses.
Income tax
Income obtained in the context of short-term property rental is subject to very specific tax rules that differ depending on whether or not the property being rented is the landlord's residence, it is furnished, additional services are provided, it is rented to individuals or to companies, ...
Property, movable and miscellaneous income
If the room being let is part of the property serving as the landlord's residence, the rental income is taxed as property income. The calculation is based on cadastral income in proportion to the rented part of the property and the effective rental period within the income year. The progressive tax rates are applied to this.
If the guest room is furnished, the landlord will additionally be taxed on an amount of movable income equivalent to 40% of the total rental income. This movable income will be taxed at a rate of 30% (+ municipal taxes: 0 to 9 %).
In case additional services are provided such as room cleaning, breakfast, sale of local produce, etc., the income earned from these will be taxed as miscellaneous income at a rate of 33% (+ municipal taxes: 0 to 9 %).
Professional income
When one rents out rooms very frequently, in a structured and organised manner, the tax administration will consider that one is operating an AirBnB in the context of one's professional activity. In that case, the categories discussed above (immovable, movable and miscellaneous income) will not apply. Indeed, the entire income from renting out rooms will then qualify as professional income and be taxed at the progressive rates, after deduction of flat-rate or proven professional expenses.
It is possible that this professional activity will also be understood as self-employment that presupposes submission to the social status of the self-employed.
Additional income untaxed?
Under certain conditions, it is possible to enjoy the regime of untaxed additional income for renting out rooms/residences;
rental is accompanied by the provision of services (e.g. breakfast);
rentals and services are offered by individuals to individuals;
supply is done through an approved electric platform;
gross income amount does not exceed EUR 6,130.00 on an annual basis and EUR 510.83 on a monthly basis. As soon as these amounts are exceeded, the tax exemption cannot be applied and the entire income will be taxed.
One of the conditions means that renting out a room and offering services untaxed is only possible via recognised platforms. AirBnB, womdu.be, rent.com, tripping.com, ... are not such recognised platforms so the income earned through these platforms falls outside the untaxed additional income.
Platforms that are recognised can be found on the FPS Finance website. Currently, the only recognised platform in the context of tourist accommodation is "Supervakantie Vlaanderen".
Btw
In principle, anyone offering furnished accommodation must register for VAT purposes and charge VAT to their guests (VAT rate of 6%). However, if the total turnover (excluding VAT) is less than EUR 25,000.00 (on an annual basis), the landlord may qualify for the special VAT exemption for small entrepreneurs. In that case, no VAT should be charged.
Tourist tax
Many cities and towns have a "tourist tax", which creates not only a financial, but especially an administrative burden (such as keeping in a register, of overnight stays).
Decision
AirBnB has long since ceased to be an alternative tourist curio. It has become a fixture in the world of globetrotters, undoubtedly leaving an economic footprint that is no longer negligible. Strict regulation has not been long in coming. These aim to protect consumers and allow the State to get a piece of the public's lucrative entrepreneurial spirit. Whereas a tourist often disappears with the sun, administrative, fiscal or social worries can cause a hangover afterwards. Anyone who wants to rent out should inform themselves beforehand.
