Property tax and the tenant
Does the tenant pay property tax? Rights, pass-through and disputes.
Principle: who pays the property tax
The property tax is a personal tax of the owner. In Belgian law, it is fundamentally the owner’s responsibility, not the tenant’s. However, the rules differ between residential and commercial leases.
| Lease type | Property tax charged to | Legal basis |
|---|---|---|
| Primary residence lease | Landlord only | Mandatory |
| Student lease | Landlord only | Mandatory |
| Co-tenancy lease | Landlord only | Mandatory |
| Commercial lease | Can be passed to tenant | If lease stipulates it |
For residential leases, any clause requiring the tenant to pay the property tax is null and void. This is a mandatory rule that cannot be overridden by contract.
Residential lease: landlord pays
In a primary residence lease, the property tax is exclusively the landlord’s charge. The tenant cannot be asked to contribute to it, directly or indirectly.
The property tax must not appear in the charge breakdown. It is not a recoverable charge, unlike water, electricity or common area maintenance. The landlord bears it entirely, as part of the ownership costs.
If the landlord includes property tax in the charges or asks the tenant to reimburse it, the tenant can refuse and challenge the charge before the justice of the peace.
Commercial lease: different rules
In a commercial lease, the parties can freely agree on the allocation of property tax. If the lease stipulates that the tenant pays the property tax (in whole or in part), this clause is valid and enforceable.
This is common practice in commercial lettings. The tenant should negotiate this point before signing and factor it into their occupancy cost.
The property tax for commercial properties is often higher due to a higher cadastral income.
Abusive clauses
In residential leases, the following clauses are null and void:
- Any clause requiring the tenant to pay property tax
- Any clause including property tax in the rental charges
- Any clause disguising property tax as a “property maintenance contribution”
If such a clause exists in your lease, it has no legal effect. The tenant can refuse to pay and demand reimbursement of any amounts already paid under such a clause.
Tenant recourse
If the landlord demands payment of property tax from a residential tenant:
- Refuse in writing: cite the mandatory nature of the rule
- Request reimbursement: if amounts were already paid, demand their return
- Justice of the peace: if the landlord insists, the justice of the peace can annul the clause and order reimbursement
For the landlord, attempting to pass property tax to residential tenants creates legal risk and damages the landlord-tenant relationship. Include property tax in your yield calculation from the start and use a rental management software to track all charges correctly.