Housing for foreign workers: issues and considerations

Belgium currently has a considerable number of foreign workers who work and reside there temporarily or for a longer period. After all, in various sectors, such as construction and industry, the demand for labour exceeds the available supply on the local labour market. To compensate for these shortages, companies often rely on workers from abroad, both from other European member states and – in certain cases – from outside the European Union. Foreign workers therefore play an important role in the functioning of various sectors of the Belgian economy. 

When foreign employees temporarily work in Belgium, they often stay in the country for a certain period of time. For many of these employees, it is not easy to find suitable housing themselves, especially when it comes to a short stay or when they are not familiar with the local housing market. This is why, in practice, employers regularly offer housing to facilitate the stay of these employees in Belgium and to simplify the practical organization of the work. 

While this can be beneficial for both employer and employee, housing foreign workers also raises various legal, tax, and practical questions. After all, employers must consider tax rules, housing quality standards and specific conditions regarding cohabitation and sharing rooms. We discuss the most important points of attention. 

Provision of housing free of charge: taxable benefit or reimbursement of professional expenses?  

When an employer makes housing available to its employee free of charge, the question arises as to how this should be treated for tax purposes. More specifically, it must be examined whether this accommodation should be regarded as a taxable benefit in kind for the employee, or as a reimbursement of professional expenses that can in principle be made tax-free. 

If the housing is considered a benefit in kind, this benefit is taxable for the employee. If, on the other hand, it is assumed that it is a reimbursement of costs incurred by the employee in the course of his professional activity — for example, costs for double accommodation because the employee works temporarily in Belgium — this contribution may remain untaxed under certain conditions. 

To determine which qualification applies, several criteria must be assessed. An essential element in this is the temporary nature of the employment and residence in Belgium. If it is clear that the employee only works in Belgium for a limited period and retains his habitual residence abroad, this may indicate that the accommodation is linked to the temporary professional activity. 

In addition, the necessity of the stay also plays a role. If it is practically impossible for the employee to go home every day, this can be an argument for considering the accommodation as a professional expense. 

Furthermore, the nature and amount of the costs are also considered. The costs must be realistic and in line with the market. In other words, the house or room made available must not constitute an excessive luxury advantage that is disproportionate to the actual needs of the employee. 

Since the assessment of these elements is not always easy in practice, it may be advisable for employers to obtain legal certainty in advance. This can be done by requesting a ruling from the Belgian tax authorities. In this way, one can get clarity in advance about the tax treatment of the housing. 

Employee housing must meet safety, health and quality requirements and rooms may only be shared under certain conditions. 

In addition to the tax aspects, employers must also consider the rules on housing quality and accommodation. Specific standards apply in Flanders. The purpose of these regulations is to guarantee that every home meets minimum standards in terms of safety, health and quality of living. 

The Flemish Housing Regulations distinguish between two types of housing: 

• independent housing, and 

• shared homes, such as single rooms or room rental homes. 

In principle, an independent home may only be occupied by people who belong to the same “family”. This concept is interpreted quite strictly. In many cases, employees who live together in Belgium will not automatically be considered as one family. 

However, in certain circumstances, employees can be assumed to form a joint household. This may be the case, for example, when there are clear indications that they actually organize their daily lives together, for example by cooking and eating meals together, sharing costs, etc. 

However, it is important that cohabitation must be voluntary. Employees must therefore choose to live together and may not be obliged to share a house or room with colleagues. If employees voluntarily live together and form a joint household, it may also be possible for them to share a room, provided that certain conditions are met. 

If employees do not form a joint household, they can only reside together in the same building if the house is considered to be a room rental house. In that case, specific rules apply to the layout of the building, the size of the rooms, and the presence of communal facilities such as kitchen and sanitary facilities. 

In addition, every home — whether it is an independent home or a room rental home — must always meet the minimum standards of safety, health and quality of living. This may include, for example: 

• a minimum surface area for rooms and living areas, 

• adequate ventilation and lighting, 

• safe electrical installations, 

• adequate sanitation, and 

• the absence of moisture problems or structural defects. 

Compliance with these standards is monitored by inspection services. Social inspection checks whether the housing meets the legal conditions and whether there is any abuse or poor living conditions. 

It is therefore important for employers to thoroughly check in advance whether the housing offered is fully in accordance with the regulations. It is also advisable to clearly document the voluntary nature of cohabitation, for example by means of a written statement from the employees concerned. This can help to avoid discussions or problems during an audit. 

Conclusion 

Housing for foreign workers is more than just a practical solution — it is a complex interplay of tax regulations, housing quality, and conditions. 

Employers are therefore well recommended to seek advice in good time, both on the tax impact and on the conformity of the accommodation with Flemish regulations. Good preparation can prevent possible tax discussions, sanctions or problems during inspections. 

Our experts are ready to support you in this and to work with you to find out how the housing of foreign employees can be organized in a correct and sustainable way.