Property tax 2026: what changes for landlords

Reminder: how property tax works

Property tax (precompte immobilier / onroerende voorheffing) is a regional annual tax based on the indexed cadastral income of the property. It is composed of three layers:

• Regional base rate: 1.25% of the indexed cadastral income (identical in all 3 regions)
• Provincial additional centimes: variable (500 to 2,500 centimes)
• Municipal additional centimes: variable (1,000 to 4,000 centimes)

In practice, property tax represents 30 to 55% of the indexed cadastral income depending on the municipality. For an apartment with a cadastral income of EUR 1,500, this amounts to between EUR 800 and EUR 1,500 per year.

It is a fixed cost that every property investor must factor into their yield calculation.

Flanders: additional centimes increase

Several Flemish provinces are raising their additional centimes for 2026. The average increase is 5 to 8% compared to 2025.

Flemish municipalities also adjust their rates individually. The cumulative impact can reach EUR 100 to 200 more per year for an average property. Flanders justifies this increase by the funding of energy renovation policies.

Wallonia: reduction for EPC renovation

Wallonia is introducing an incentive mechanism: a 25% reduction in property tax for properties renovated to achieve an EPC A or B rating. The conditions:

• The property must have been renovated after 1 January 2024
• The EPC A or B rating must be certified by a certificate less than 2 years old
• The reduction applies for 5 years from the year following the renovation
• It can be combined with the large family reduction

For a property with an annual property tax of EUR 1,200, the reduction represents EUR 300 per year for 5 years, totalling EUR 1,500 in savings. The renovation grants for rental properties complement this measure.

Brussels: rate freeze but removal of a reduction

Brussels is keeping its rates unchanged for 2026 but is removing the reduction for involuntary vacancy. Until 2025, a landlord whose property was empty due to works or tenant search could obtain a proportional reduction. This reduction is abolished from the 2026 tax year.

Furthermore, Brussels is introducing a 10% surcharge on properties vacant for more than 12 months without justification. The aim is to combat empty properties and bring units back onto the Brussels rental market.

Impact on rental yield

Property tax is the second largest expense after co-ownership charges. Its evolution directly impacts net yield:

For an accurate calculation of your yield including property tax, consult our rental yield calculation method.

Practical advice

1. Check your tax assessment notice upon receipt (generally between March and September)
2. Apply for reductions you are entitled to (EPC in Wallonia, large family, disability)
3. Challenge errors within 6 months via a claim to FPS Finance
4. Factor in property tax in your yield projections before any investment
5. Consider the SRL/BV structure for large portfolios: property tax is deductible for companies

Property tax is a regional tax: differences between municipalities within the same region can be significant. Consult our comparison by region to choose the optimal location for your investment.