Chapter 8 Real property
The ownership of real estate is taxed through an advance levy on cadastral income. Cadastral income is a fictive revenue that used to correspond to the net annual revenue a building would generate for its owner if rented out on the market.21 Tax rates are set at regional level, on which provinces and municipalities can add “surtaxes”, which are expressed in percentages of the regional tax. Those surtaxes represent the main source of income for municipalities and provinces.
In 2020, the regional rates are:
- 3,97% in Flanders
- 1,25% in Brussels and Wallonia
Surtaxes differ by province and municipality. Averages by region (expressed in % of the regional tax) are given in Table 8.1.
| Average 2020 surtaxes per region (%) | Municipal | Provincial | Total |
|---|---|---|---|
| Brussels | 2996 | 989 | 3985 |
| Flanders | 896 | 173 | 1069 |
| Wallonia | 2579 | 1652 | 4231 |
8.1 Reductions
Specific reductions and exemptions are granted in the different regions.
8.1.1 Brussels
- Small house: When the taxpayer only possesses one house in Brussels and occupies it, and if its non-indexed cadastral income does not exceed €745, the tax on that house’s cadasral income is reduced by 25%. This reduction is increased to 50% during 5 years for owners of a newly constructed building.
- Dependent children: A 10% rebate is granted for each dependent child, from two children on.
- Disabled: A 20% rebated is granted for each disabled member of the household.
- “Be Home”: Lump sum €131 yearly reduction.
8.1.2 Flanders
- Small house: When the sum of all non-indexed cadastral incomes in Flanders does not exceed €745, the tax on the owner-occupied house’s cadastral income is reduced by 25%. This reduction is increased to 50% during 5 years for owners of a newly constructed building.
- Dependent children: Reductions are granted, from two children onwards, according to the scale on Table 8.2.
- Disabled: Reductions are granted for disabled people, including children (in addition to the “dependent children reduction”). This reduction varies with the number of disabled people in the household, according to Table 8.3.
| Number of children | Total amount of the rebate (€) |
|---|---|
| 2 | 13.12 |
| 3 | 20.78 |
| 4 | 29.08 |
| 5 | 38.13 |
| 6 | 47.81 |
| 7 | 58.23 |
| 8 | 69.39 |
| 9 | 81.20 |
| 10 | 93.80 |
| Number of disabled | Total amount of the rebate (€) |
|---|---|
| 1 | 13.12 |
| 2 | 29.08 |
| 3 | 47.81 |
| 4 | 69.39 |
| 5 | 93.80 |
8.1.3 Wallonia
- Small house: When the sum of all non-indexed cadastral incomes in Belgium does not exceed €745 and only one house is owned and occupied (anywhere in Belgium), the tax on that house’s cadastral income is reduced by 25%. This reduction is increased to 50% during 5 years for owners of a newly constructed building.
- Dependent people: A rebate is granted for each person dependent on the taxpayer or on the taxpayer’s spouse or legal or actual cohabitant. The rebate amounts to €125 per dependent person. As far as dependent children are concerned, the household must be composed of at least two children.
- Disabled: A rebate of €125 per disabled person in the household is granted.
8.2 Module input
8.2.1 Variables
#> Warning in create_inputvar_table(path_xlsx): Some variables are missing:
#> ahooo_h_fm, ahooopo_h_fn, ahooots_h_fc, aimop01_h_fm, aimop02_h_fm,
#> aimop03_h_fm, aimoppo01_h_fn, aimoppo02_h_fn, aimoppo03_h_fn, drg_h_hsc,
#> ratio_ci_va.| Name | Description | Database |
|---|---|---|
| ahooo_h_fm | current price of household main residence | HFCS |
| ahooopo_h_fn | % of ownership of household main residence | HFCS |
| ahooots_h_fc | owner occupied housing - tenure status | HFCS |
| aimop01_h_fm | current value of other property (01) | HFCS |
| aimop02_h_fm | current value of other property (02) | HFCS |
| aimop03_h_fm | current value of other property (03) | HFCS |
| aimoppo01_h_fn | % of the other property belonging to household (01) | HFCS |
| aimoppo02_h_fn | % of the other property belonging to household (02) | HFCS |
| aimoppo03_h_fn | % of the other property belonging to household (03) | HFCS |
| drg_h_hsc | Region | HBS |
| ratio_ci_va | ratio of cadastral income on value of property | Other |
8.2.2 Parameters
| Name | Description | Value (2020) |
|---|---|---|
| rpt_b_av_surtax | brussels / average / surtax | 42 |
| rpt_b_rate | brussels / rate / | 0.0125 |
| rpt_b_red_behome | brussels / reduction / behome | 131 |
| rpt_b_red_cd_rate | brussels / reduction / child rate | 0.1 |
| rpt_b_red_di_rate | brussels / reduction / disabled rate | 0.2 |
| rpt_b_red_mod_dwel_rate | brussels / reduction / modest dwelling | 0.25 |
| rpt_b_red_mod_dwel_thr | brussels / reduction / modest dwelling | 745 |
| rpt_f_av_surtax | flanders / average / surtax | 37.89 |
| rpt_f_rate | flanders / rate / | 0.0397 |
| rpt_f_red_cd1 | flanders / reduction / child 1 | 0 |
| rpt_f_red_cd10 | flanders / reduction / child 10 | 93.8 |
| rpt_f_red_cd2 | flanders / reduction / child 2 | 13.12 |
| rpt_f_red_cd3 | flanders / reduction / child 3 | 20.78 |
| rpt_f_red_cd4 | flanders / reduction / child 4 | 29.08 |
| rpt_f_red_cd5 | flanders / reduction / child 5 | 38.13 |
| rpt_f_red_cd6 | flanders / reduction / child 6 | 47.81 |
| rpt_f_red_cd7 | flanders / reduction / child 7 | 58.23 |
| rpt_f_red_cd8 | flanders / reduction / child 8 | 69.39 |
| rpt_f_red_cd9 | flanders / reduction / child 9 | 81.2 |
| rpt_f_red_di1 | flanders / reduction / disabled 1 | 13.12 |
| rpt_f_red_di2 | flanders / reduction / disabled 2 | 29.08 |
| rpt_f_red_di3 | flanders / reduction / disabled 3 | 47.81 |
| rpt_f_red_di4 | flanders / reduction / disabled 4 | 69.39 |
| rpt_f_red_di5 | flanders / reduction / disabled 5 | 93.8 |
| rpt_f_red_mod_dwel_rate | flanders / reduction / modest dwelling | 0.25 |
| rpt_f_red_mod_dwel_thr | flanders / reduction / modest dwelling | 745 |
| rpt_up | uprate / / | 1.8492 |
| rpt_w_av_surtax | wallonia / average / surtax | 13.58 |
| rpt_w_rate | wallonia / rate / | 0.0125 |
| rpt_w_red_cd1 | wallonia / reduction / child 1 | 0 |
| rpt_w_red_cd10 | wallonia / reduction / child 10 | 1125 |
| rpt_w_red_cd2 | wallonia / reduction / child 2 | 125 |
| rpt_w_red_cd3 | wallonia / reduction / child 3 | 250 |
| rpt_w_red_cd4 | wallonia / reduction / child 4 | 375 |
| rpt_w_red_cd5 | wallonia / reduction / child 5 | 500 |
| rpt_w_red_cd6 | wallonia / reduction / child 6 | 625 |
| rpt_w_red_cd7 | wallonia / reduction / child 7 | 750 |
| rpt_w_red_cd8 | wallonia / reduction / child 8 | 875 |
| rpt_w_red_cd9 | wallonia / reduction / child 9 | 1000 |
| rpt_w_red_di1 | wallonia / reduction / disabled 1 | 125 |
| rpt_w_red_di2 | wallonia / reduction / disabled 2 | 250 |
| rpt_w_red_di3 | wallonia / reduction / disabled 3 | 375 |
| rpt_w_red_di4 | wallonia / reduction / disabled 4 | 500 |
| rpt_w_red_di5 | wallonia / reduction / disabled 5 | 625 |
| rpt_w_red_mod_dwel_rate | wallonia / reduction / modest dwelling | 0.25 |
| rpt_w_red_mod_dwel_thr | wallonia / reduction / modest dwelling | 745 |
8.4 References
[] SPF Finances - Precompte immobilier. 2020. URL: https://finances.belgium.be/fr/particuliers/habitation/precompte_immobilier.
[] Bruxelles Fiscalité - Le précompte immobilier. 2021. URL: https://fiscalite.brussels/fr/le-precompte-immobilier.
[] Vlaamse Overheid - Onroerende voorheffing. 2021. URL: https://www.vlaanderen.be/onroerende-voorheffing.
[] Wallonie - Precompte immobilier. 2021. URL: https://www.wallonie.be/fr/demarches/payer-mon-precompte-immobilier.
The last computation dates back to 1975 and since 1990 the cadastral income is indexed yearly.↩︎