Discover the Cadastral income: Understanding its Tax Implications for Your Property in Belgium
The Cadastral income – a fundamental yet often overlooked aspect of real estate ownership in Belgium – is much more than a mere tax assessment. Understanding its influence is crucial for all property owners and prospective buyers.
What is the Cadastral income?
Every real estate property is listed with the land registry administration, which assigns it a fictitious income known as the Cadastral income This figure is utilized for the collection of a property tax known as withholding tax.
The land registry administration ensures property taxation and identifies the owners of each property.
The Cadastral income is a theoretical assessment of the average income of a property at a given time. It serves as the basis for calculating the property tax, the withholding tax but does not directly correspond to an amount to be paid. This figure plays an essential role in determining the fiscal value of a property.
Who is responsible for declaring the Cadastral income ?
The property owner is responsible for declaring the Cadastral income In the case of shared ownership, each owner declares a proportional share. In the event of a sale, both the seller and the buyer declare the period during which they were respectively owners.
Revisions and Indexation:
The Cadastral income is reassessed every 10 years and is indexed annually to reflect economic changes. A revision can be requested by the owner or if the rental value has changed by at least 15%.
Differences between Cadastral income and withholding tax:
The Cadastral income is a theoretical assessment used as the basis for calculating the property tax, the withholding tax. The latter is the actual tax to be paid on a real estate property in Belgium and depends on multiple factors (such as the owner's personal situation, the municipality in which the property is located, and local tax rates), including the Cadastral income.
Calculation of the Cadastral income:
Carried out by the land registry administration, this calculation is based on a theoretical assessment of the income a property could generate. The method of calculation varies based on various parameters specific to each property.