Article illustration: Property Taxes in Wallonia and Brussels: Understanding the Changes for 2025–2026
Reglementation
8 June 2026

Property Taxes in Wallonia and Brussels: Understanding the Changes for 2025–2026

As a real estate professional in Wallonia, it is essential to understand the intricacies of Belgian real estate taxation. Whether you are a buyer, seller, or property owner, tax rules are constantly changing, particularly with significant reforms in Wallonia and specific provisions in Brussels. This article provides a factual and useful overview of the main real estate taxes and duties for 2025–2026.

This article is for informational purposes only and does not constitute legal advice. For any specific situation, we recommend consulting a legal or tax professional.

Registration Fees: A Major Reform in Wallonia Starting in 2025

Registration fees are one of the most significant taxes when purchasing an “existing” property in Belgium. They are applied to the sale price and vary by region.

In Wallonia: a reduced rate of 3% for a primary residence

Starting January 1, 2025, Wallonia has implemented a major reform: the registration fee rate for the purchase of a primary residence will drop from 12.5% to 3%.

To qualify for this reduced rate, the buyer must meet several conditions:

The property must become the buyer’s primary residence within 3 years (5 years for a building lot or a home under construction/off-plan).

The buyer must maintain this property as their primary residence for at least 3 years from the date of registration.

The buyer must not hold full ownership of another residential property (in Belgium or abroad). An exception is made if the buyer commits to reselling their current property within 3 years of acquiring the new property.

This reform eliminates previous tax incentives such as the first-time buyer deduction, the housing voucher, and the reduced rate for modest homes.

A key point is the absence of a price cap for the application of the reduced 3% rate. This means that the rate applies to the entire purchase price, regardless of the property’s value.

In Brussels: The Tax Deduction Still Applies

In the Brussels-Capital Region, registration fees generally amount to 12.5% of the purchase price.

However, a tax allowance allows you to avoid paying registration fees on the first €200,000 of the purchase price for the acquisition of a primary residence. This can represent a maximum savings of €25,000.

The conditions for qualifying for this exemption include: The property must be located in Brussels.

The buyer must be an individual.

The property must become the buyer’s primary residence, and the buyer must take up residence there within 3 years (and remain there for at least 5 years).

The buyer cannot be the sole owner of another residence.

The purchase price must not exceed €600,000.

For building land, the tax credit is €100,000, with a price cap set at €300,000.

An additional allowance is also available in Brussels for energy-efficient renovations, offering an extra €25,000 reduction for each improvement in energy efficiency class.

Property Tax: An Annual Regional Tax

Property tax is an annual regional tax owed by the owner (or possessor, usufructuary, emphyteutic lessee, or superficiary) of a property. It is calculated based on the indexed cadastral income (CI), to which a regional rate (1.25% in Wallonia) is added, as well as provincial and municipal surcharges.

The cadastral income is a notional income corresponding to the net annual rent the property could yield. It is indexed annually.

Reductions are available for property tax, particularly for modest dwellings, people with disabilities, or those with dependent children. It is important to submit an application via an online form before January 1 of the relevant tax year to qualify.

Real Estate VAT: For New or Renovated Properties

VAT generally applies at a rate of 21% for the purchase of new real estate or for certain real estate work. A property is considered new until December 31 of the second year following the year of its first occupancy or use.

However, a reduced VAT rate of 6% may apply to certain renovation, conversion, or demolition-and-reconstruction work, subject to the following conditions:

The building must be used primarily for private residential purposes.

Its first occupancy must have taken place at least 10 years ago.

The work must be invoiced to an end consumer.

Since January 1, 2024, the reduced rate of 6% for demolition and reconstruction has been maintained throughout Belgium, but with social conditions, notably a maximum living area of 200 m² and the requirement that the property be used as the owner’s sole and primary residence. Real estate developers are generally excluded from this reduced rate and are subject to the 21% rate.

Real estate rentals are generally exempt from VAT, but an optional VAT scheme exists for rentals to taxable tenants who use the property for their economic activity.

Personal Income Tax on Real Estate Income

Real estate income is subject to personal income tax (PIT). How it is calculated depends on the use of the property:

Owner-occupied residence: Income is tax-exempt.

Property not rented or rented to individuals (private use): Tax is calculated on the indexed cadastral income, increased by 40%.

Property rented to an individual or legal entity for professional use: Tax is calculated on the actual rent received, less a flat-rate deduction of 40% for expenses (with a minimum equal to two-thirds of the revalued cadastral income).

If the property is rented furnished to an individual, a portion of the rental income is considered movable property and taxed separately at 30% after a flat-rate deduction of 50% for expenses.

Capital Gains Tax on Real Estate

In Belgium, capital gains tax on real estate is a complex matter that depends on several factors, including the length of ownership and the nature of the property (built or undeveloped).

Primary residence: Capital gains realized upon the resale of your primary residence are generally tax-exempt.

Resale of a developed property within 5 years: Capital gains are taxed at 16.5%.

Resale of land within 8 years: The capital gain is taxed at 33% if the resale occurs within 5 years, and at 16.5% if it occurs between 5 and 8 years. Beyond 8 years, there is no tax.

Taxable capital gains must be reported on the individual income tax return. It is important to keep all supporting documents (notarized deeds, invoices for work, etc.) for 7 years in case of an audit.

In the case of acquisition through inheritance or gift, the capital gain is generally not taxable, regardless of the timeframe for resale.

Understanding these various aspects of real estate taxation is crucial for any property owner or prospective buyer in Wallonia and Brussels. At GIPB, we are here to support you and guide you through your real estate projects.

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