Property tax (précompte immobilier / onroerende voorheffing) is an annual Belgian tax based on the cadastral income (revenu cadastral / kadastraal inkomen) of the property. The cadastral income, set by the cadastral administration, represents the notional net rental income of the property as of 1 January 1975. This amount is indexed annually (coefficient of 2.1763 for 2025).

The tax amount results from multiplying the indexed cadastral income by the regional base rate, plus provincial surcharges and municipal surcharges. The simplified formula is:

Formula — Property tax = Cadastral income × indexation coefficient × (base rate + provincial surcharges + municipal surcharges). For a property with a cadastral income of €1,500 in Brussels (Ixelles municipality), the annual property tax is approximately €1,800 to €2,200.

The tax notice is sent annually by the regional tax authority. In Wallonia, it is issued by SPW Fiscalité; in Brussels, by Bruxelles Fiscalité; in Flanders, by the Vlaamse Belastingdienst (VLABEL).

The base rates for property tax differ by region:

  • Walloon Region: base rate of 1.25% of the non-indexed cadastral income. Municipal surcharges vary between 2,000 and 4,000 centimes depending on the municipality.
  • Brussels-Capital Region: base rate of 1.25%. Municipal surcharges typically range between 2,800 and 3,800 centimes.
  • Flemish Region: base rate of 3.97% (following the 2024 reform that integrated former provincial surcharges). Municipal surcharges vary between 700 and 2,000 centimes.

Good to know — A landlord should compare the tax burden between municipalities before investing. The difference in property tax between two neighbouring municipalities can amount to several hundred euros per year for the same cadastral income.

Property tax is owed by the owner of the property on 1 January of the tax year. It cannot be contractually passed on to the tenant in a residential lease, although this clause is common in commercial leases.

Several property tax reductions exist in Belgium:

  • Dependent children: reduction from 2 children domiciled in the property (approximately €125 per child in Wallonia and Brussels).
  • Disabled persons: flat-rate reduction for the owner or a household member with a recognised disability.
  • Unproductive properties: proportional exemption if the property has remained unoccupied and unproductive for at least 90 days (under strict conditions of market availability).
  • Energy renovation: certain regions offer temporary reductions for renovated properties achieving a better EPC certificate.

Warning — Reductions are not always automatic. The owner often needs to submit an express application to the competent regional tax authority, along with the necessary supporting documents (household composition, disability certificate, etc.).

In case of disagreement with the tax amount, a formal objection may be filed within six months of the tax notice being sent. The objection is addressed to the competent regional director and must be substantiated.