Other Taxes Guide for Expat
Property Tax
All property privately owned in Belgium is subject to property tax. The tax is calculated on deemed rental income assessed at a given reference date (eg 1 January 1975). This is multiplied by a revaluation index on a yearly basis to give a reflection of current value (around 1.75 for 2010). An assessment notice is sent at the beginning of the year and the value is taxed usually between 30 and 50% depending on the location. For more information go to https://finance.belgium.be/en (French, Dutch & German).
For residents of Belgium, income generated from rental property must be declared in the filing of taxes and will be taxed according to what your overall tax bracket is (see section on Income Tax for tax rates).
Value-added Tax (VAT)
This is a tax charged on the consumption of goods and services payable by everybody. It is levied at all stages of a product/service’s evolution and paid to the government based on the value added at each level. This tax is collected by the government from final traders of the goods and services, being paid for by consumers as part of the price of the good/service.
There are 3 VAT rates in Belgium. The standard rate is 21%. Some goods/services (social housing, phyto-pharmaceutical goods, margarine, pay TV) are charged at 12%, and others, considered basic necessities like food, pharmaceuticals, newspapers, cars for disabled people, sporting/entertainment venues and the like are charged at 6%.
More information can be found at http://www.investinflanders.com/
TV and Radio Licenses
In Flanders, the Flemish-speaking part of Belgium, TV and radio licenses no longer exist. In Wallonia, the French-speaking area, a television license is necessary and costs 149,67€/yr. Only one tax payment is required regardless of number of television sets in the house. Wallonia also requires having a license for car radios and this costs 26,72€/yr and a separate one is required for every car with a radio, and must be carried in the car at all times.
After buying a television or car for the first time you must inform the Walloon Television and Radio License Service within 30 days at which time they will send you and annual invoice for the fees. When changing addresses you must inform them within 15 days of moving. The address is Service Radio-Television Redevances de la Region Wallone, Avenue Gouverneur 29, Namur 5100, Telephone: 081330211. These taxes are used to fund Belgium’s French and German public broadcasting stations.
Capital Gains Tax
Capital gains achieved by individuals not participating in business activities are generally not taxable in Belgium, though with real estate there are exceptions. Immovable developed property sold less than five years after purchase is subject to 16.5% capital gains tax. A 33% tax is levied for undeveloped property sold within five years, though 44% of that may be reclaimed if sold after only two years, and all expenses related to the property are deductible. Speculative financial transactions are also taxed at 33%.
