Guide to Property Taxes in Belgium

Nonresidents are generally subject to Belgian income tax on Belgian-source income, including income derived from Belgian real estate.

Income Tax (PIT)

Income tax is levied at progressive rates. The tax bands are adjusted annually.

Income Tax Rates 2026

A personal tax-free allowance may reduce the actual amount of tax payable. For nonresidents, entitlement to Belgian personal allowances can depend on the taxpayer's circumstances, including whether at least 75% of worldwide professional income is taxable in Belgium.

Rental Income Tax

Nonresidents renting out their property will be taxed on rental income exceeding €2,500. Rental income below this limit need not be reported in a nonresident income tax return, provided that it is the only source of income in the country.

Taxable income is based on the 'cadastral income,' which is the property’s deemed income. This is an annual indexed value determined by the tax authorities, but in practice, the 1975 index is used, so cadastral income values tend to be lower than actual rental incomes.

So the basic 2026 formula is:

Taxable property income = cadastral income × 2.3 × 1.40

The cadastral value is increased by 40%, minus deductible expenses (which includes depreciation, repairs, maintenance, renovations, interest payments, as well as real estate and inheritance tax payments). The expenses relating to immovable property are computed on a flat basis depending on whether the property is built upon or not (resulting in a deduction of 40% or 10%, respectively).

Depreciation for rented property is computed through the straight-line method. The annual depreciation rate of real estate is around 3% of the property’s investment value based on the original acquisition cost.

Capital Gains Tax

Capital gains realized by individuals on Belgian real estate held as part of the normal management of their private assets are generally exempt after the relevant holding period. However, gains on relatively short-term disposals can be taxable.

Developed Property

A capital gain on developed real estate sold within five years of acquisition is generally subject to a separate tax rate of 16.5%, plus applicable local surcharges.

After the five-year holding period, a gain arising from the normal management of private assets is generally exempt.

Undeveloped Land

Capital gains on undeveloped land are generally taxed at:

• 33% where the property is disposed of within five years of acquisition; and
• 16.5% where it is disposed of more than five but no more than eight years after acquisition.

After the applicable eight-year period, gains arising from normal private-asset management are generally exempt.

Gains regarded as arising from speculative activity or falling outside the normal management of private assets may be subject to separate taxation, generally at 33%, plus applicable surcharges.

Corporate Taxation

The standard Belgian corporate income tax rate is 25%.

Qualifying small companies may benefit from a reduced rate of 20% on the first €100,000 of taxable profit, provided the applicable statutory conditions are satisfied. Taxable profit exceeding €100,000 remains subject to the standard 25% rate.

Rental income and taxable real-estate gains earned by a company are generally included in corporate taxable income. Qualifying business expenses may be deducted in determining taxable profit.

Property Buying Costs and Taxes in Belgium

Property Holding Tax

Immovable Property Tax

Belgian property owners are subject to an annual regional tax known as the immovable withholding tax (précompte immobilier/onroerende voorheffing). Despite its name, this is an annual property tax rather than a withholding tax on rental payments.

The tax is calculated on the property's indexed cadastral income, rather than its current market value or actual rental income.

The basic regional rates are generally:

These percentages should not be interpreted as percentages of the property's market value. They are applied to the property's indexed cadastral income.

Municipal Income Tax Surcharge

Belgian municipalities generally impose an additional surcharge on personal income tax. The applicable percentage varies by municipality.

Special rules apply to nonresidents. A nonresident subject to Belgian nonresident income tax may be subject to an additional surcharge calculated according to the rules applicable to nonresident taxpayers rather than necessarily according to the municipal rate applicable to a Belgian resident.

This income-tax surcharge is separate from the municipal and provincial surcharges included in the annual immovable property tax.