Who is liable for property tax
The property owner as of 1 January is liable for property tax for the entire year. For primary residence leases, property tax cannot be passed on to the tenant — this is a mandatory legal rule. For commercial leases, a contractual clause can require the tenant to reimburse the property tax to the landlord.
Even if the property is sold during the year, the owner on 1 January remains liable for the full year’s property tax. There is no pro-rata split by law, although the notary may arrange a private settlement between buyer and seller.
Residential vs commercial leases
| Lease type | Pass-on to tenant | Legal basis |
|---|---|---|
| Primary residence | Prohibited | Regional housing legislation |
| Student lease | Prohibited | Regional housing legislation |
| Common law lease | Allowed (if clause in lease) | Civil Code |
| Commercial lease | Allowed (if clause in lease) | Commercial Lease Act |
| Short-term rental | Prohibited for housing | Regional housing legislation |
A shop in Brussels with a commercial lease. The lease includes a clause: “The tenant reimburses 100% of the annual property tax within 30 days of presentation of the assessment notice.” The landlord pays the tax to the administration and invoices the tenant.
Property sale during the year
When a property is sold, the liability for property tax does not transfer automatically. The owner on 1 January pays the full annual amount. However, most notarial deeds include a settlement clause that pro-rates the property tax between seller and buyer from the date of transfer.
If you buy a property in June, you may still receive the full year’s property tax notice because it was issued to the previous owner on 1 January. The notary should have settled this at closing. Verify the settlement in your deed.
When drafting a commercial lease, be specific about which taxes the tenant reimburses: property tax (precompte immobilier), but also garbage collection tax, water tax and other municipal charges if applicable.
Regional specifics
Brussels-Capital Region
The Brussels Housing Code (ordonnance of 27 July 2017) explicitly prohibits passing property tax on to the tenant for residential leases. Brussels Fiscalite sends the assessment notice directly to the owner.
Walloon Region
The Walloon Housing Decree (15 March 2018) contains the same prohibition for residential leases. The SPW Fiscalite manages collection.
Flemish Region
The Flemish Housing Decree (Vlaams Woninghuurdecreet of 9 November 2018) prohibits the pass-on for residential leases. VLABEL manages property tax. Flanders is the only region where the base rate (3.97%) is significantly higher.
Regional housing legislation (Ordonnance 27/07/2017, Decret 15/03/2018, Vlaams Woninghuurdecreet 09/11/2018), Articles 249 to 260 CIR 92 — Texts on Justel