Are you a property owner or a future property owner? If so, you will need to pay property tax on your property. But what exactly is it? And how do you calculate the amount? EASY Estate, your family-run real estate agency in the province of Liège, explains everything you need to know about property tax.
What is property tax?
Property tax is an annual regional tax on taxable real estate. It applies to built and unbuilt properties, as well as the equipment and tools used by an industrial, commercial, or craft business.
This tax must be paid every year by the holder of a real right over the property on 1 January, meaning the owner, possessor, long-lease holder, building-right holder, or usufructuary of the property. However, if you’re having a property built, you’ll need to pay property tax from 1 January of the year following your move into the building.
How do you calculate property tax?
In practical terms, how much do you have to pay for your taxable property? It’s calculated based on the property’s cadastral income, multiplied by an overall rate made up of the regional tax rate, provincial surcharges, and municipal surcharges.
Property tax = indexed cadastral income x overall rate
Overall rate = regional tax rate + provincial rate + municipal rate
The indexed cadastral income
The indexed cadastral income (RC) is the basis of property tax. It’s set by the FPS Finance (Federal Public Service Finance). This amount corresponds to the average net income the property could generate over one year at the reference date. In other words, it’s what your property could earn you in a year of rental.
It’s determined based on the building (for example, the number of bathrooms, the surface area, etc.) and the normal rent charged for comparable properties in the neighbourhood.
The regional tax rate
Each region sets its own regional tax rate for property tax. The proceeds of this tax rate go to the region. In Wallonia and Brussels, it stands at 1.25% for all properties in 2024. In Flanders, it stands at 3.97%.
The additional provincial and municipal rates
The municipal and provincial rates correspond to surcharge centimes on property tax that municipalities and provinces levy. They are voted on every year. They can therefore vary from one year to the next and from one municipality or province to another. Nevertheless, there are recommendations regarding maximum rates.
In Wallonia in 2024, for example, the recommended maximum municipal surcharge rate is 2,600 centimes. In the province of Liège, provincial rates stand at 1,750 centimes.
Property tax reduction in Wallonia: in which cases?
In certain cases, you may be entitled to a reduction in property tax. In Wallonia, this applies to modest homes, household dependents, and people with disabilities or severely disabled war veterans.
Modest home
To benefit from a property tax reduction as a modest home, you must meet several conditions. The property must be your only home and you must occupy it personally. In addition, the sum of the non-indexed cadastral income of this property and the cadastral income of all your other properties in Belgium must not exceed €745.
In this case, you benefit from a 25% reduction on property tax, and 50% for the first 5 years for a new home or new build.
Household dependents
You’re entitled to a reduction for “household dependents” if you have at least two children in your care, a person with a disability (with a disability of at least 66% recognised before age 65, or with a minimum of 4 points in the first category for children), or another dependent with a family relationship (with yourself, your spouse, or your legal or de facto cohabiting partner).
The property tax reduction applies per dependent. For example, you receive €125 per dependent child (minimum 2 children).
Person with a disability or severely disabled war veteran
Finally, you can benefit from a reduction if you’re recognised as a severely disabled war veteran or a person with a disability (with a disability of at least 66% recognised before age 65). Here too, the reduction applies per person.
When and how do you pay this property tax?
You must pay your property tax every year. The advantage is that you have nothing to do! In Wallonia, the SPW Finances will automatically send you a tax assessment notice during the second half of the year. This document will show the amount due as well as the payment deadline.
Careful: if you’re entitled to a reduction, you must apply for it via a form on Wallonia’s official website. You can fill it in from January of the tax year onwards.
Get help from our real estate agents
Are you looking for a property in the province of Liège and have questions about property tax? EASY Estate‘s real estate agents will be happy to support you in your search, advise you, and answer your questions.
