Are you about to sell or buy a property in Wallonia? Understanding the tax implications of a property transaction can help you make the right decisions and optimise your investment. BIV Immobilier, your estate agency in Liège, sets out the key points of property taxation here.
Cadastral income
In Belgium, the land registry administration records every property. Cadastral income represents the theoretical rental value of a property, as determined by the tax authorities. The property withholding tax is calculated on the basis of this value. Cadastral income varies from one property to another depending on various factors: location, size, layout, the condition of the property...
Check the cadastral income carefully before buying a property, as it will have a direct impact on your future tax liabilities.
Property withholding tax
Property withholding tax (précompte immobilier) is an annual tax that every property owner must pay. In Wallonia, as mentioned above, the amount of property withholding tax is calculated on the basis of the property’s cadastral income. This amount can vary depending on the municipality and local tax policies. As an owner, be aware of your property withholding tax obligations: late payment can result in penalties.
The property withholding tax assessment notice covers the period from 1 January to 31 December of the current year. If the property is sold during the year, the seller(s) and the buyer(s) will share this tax between them, pro rata to the period of occupation, as calculated by the notary on the day of the deed.
Registration duties
The buyer of a property must pay a tax to the Walloon Region within 4 months of signing the sales agreement (compromis). If there is a condition precedent, this 4-month period starts on the date on which that condition is lifted.
Since 1 January 2025, the rate of registration duties for a property intended to become the buyer’s own and only home has been reduced to 3% (instead of 12.5%).
Taxes on property capital gains
If you make a capital gain when selling your property in Wallonia, it may be subject to tax. This tax applies if less than 5 years have passed between the purchase of a property and its sale. In principle, the capital gain is calculated as the difference between the purchase price and the sale price, adjusted to take account of the costs relating to the acquisition and sale of the property.
If you have occupied the property as your main residence for at least 5 years, good news: you are exempt from capital gains tax.
Taxes on abandoned buildings
Wallonia has introduced a tax to combat properties considered to be abandoned. These taxes are intended to encourage owners to renovate / maintain these properties and to occupy them. Consider letting or selling your property through an estate agency if you cannot manage it yourself; this can save you unnecessary costs.
You can consult the notaire.be website for more details.
Do you have a question about any of these aspects of property taxation? Contact BIV Immobilier for any information on property in the province of Liège and in Wallonia!
Also read: The key steps to buying your first home
