In Belgium

A second home (tweede verblijf) is any property the owner does not use as their primary residence. This includes holiday homes, investment properties, inherited properties kept for occasional use, and city apartments used during the work week.

The tax burden on second homes is heavier than on primary residences:

  • Property tax: same calculation as any property (no exemption or reduction for second homes)
  • Municipal second-home tax: an additional flat-rate annual tax levied by many municipalities (typically 500 to 1,500 EUR)
  • Personal income tax: the indexed cadastral income + 40% must be declared, whether the property is let or not
  • No registration duty reduction: second-home buyers pay the full registration duty rate (12.5% in Brussels/Wallonia, 12% in Flanders)

How it works

Declaration. The owner must declare the CI of all properties except their primary residence in section III of the tax return. For an unlet second home, the indexed CI + 40% is added to taxable income.

Municipal tax. The second-home tax is separate from the property tax. It is invoiced directly by the municipality and must be paid annually.

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Good to know
Some coastal and tourist municipalities have very high second-home taxes (over 1,000 EUR/year) to offset the impact of seasonal occupancy on local services. Check the municipal rate before purchasing.

Practical example

Brigitte owns a holiday apartment at the Belgian coast (Knokke). CI = 800 EUR. Annual costs: property tax 650 EUR + municipal second-home tax 1,200 EUR + IPP on indexed CI (800 x 2.1763 x 1.4 = 2,437 EUR, taxed at marginal 50% = 1,219 EUR). Total annual tax burden: approximately 3,069 EUR, before any maintenance or charges.

Key considerations

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Warning
An unlet second home still generates tax obligations. Failing to declare its cadastral income in your tax return constitutes a tax offence, even if the property produces no actual rental income.