In Belgium

Tax exemptions in Belgian property law apply in specific situations where a property is partially or fully exempt from tax. The main exemptions are:

Primary residence (IPP exemption). Since the 2005 tax reform, the cadastral income of the owner’s primary residence is exempt from personal income tax. Only the CI of additional properties is declared.

Unproductive property (property tax exemption). A property that is uninhabitable or unproductive through no fault of the owner (fire, flood, expropriation, major works) may qualify for a proportional exemption from property tax. Conditions are strict, particularly in Flanders.

Public and institutional buildings. Properties used for public services, education, worship or charity are exempt from property tax.

Social housing. Certain social housing properties benefit from reduced or exempted property tax depending on the Region.

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Good to know
The exemption for unproductive properties is not automatic. The owner must submit a request to the tax authorities, with supporting documentation (photos, expert report, building permit), generally within 3 months of the event making the property unproductive.

Practical example

A fire renders Alain’s apartment in Namur uninhabitable in April. He applies for a property tax exemption for the remaining 8 months of the year. After verification, the tax authorities grant a proportional reduction of 8/12 of the annual property tax. Alain saves approximately 550 EUR.

Key considerations

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Warning
In Flanders, the exemption for vacant or unproductive properties has been severely restricted. Vacant habitable properties may instead face a vacancy tax. Check the Flemish rules before assuming an exemption applies.