Bart De Wever proposes cadastral tax hikes on secondary homes
Secondary homeowners in Belgium and abroad face potential tax hikes under a proposal unveiled by Prime Minister Bart De Wever. The measure, transmitted to coalition partners by the N-VA, aims to increase the taxable base for multi-property owners by raising the indexation and multiplication coefficients applied to cadastral incomes exceeding 5,000 euros.
De Wever Proposes Cadastral Tax Overhaul
Prime Minister Bart De Wever placed the fiscal adjustment directly on the negotiating table in an initial memorandum shared with governing partners. According to details revealed by L’Echo and De Tijd, the policy targets property owners whose cumulative cadastral revenues surpass the 5,000-euro threshold, calculated before indexation.
Targeting Large Portfolios While Shielding Single Homes
This design specifically shields owners of single, modest holiday homes while increasing the tax pressure on substantial multi-property portfolios. Under current Belgian law, secondary residences are taxed through the personal income tax system based on their cadastral income. This figure is indexed and then multiplied by a factor of 1.4, representing a 40 percent surcharge.
Theoretical Valuation Over Actual Rental Returns
The newly tabled proposition suggests elevating this multiplication coefficient to generate higher taxable income. Crucially, the system will not levy charges against actual rental income received by owners. Instead, it relies entirely on the theoretical cadastral value assigned to the real estate assets.
Impact on International Holdings and Double Taxation Treaties
International holdings will not escape the proposed fiscal adjustments. Secondary residences situated outside of Belgium fall under the scope of the potential tax increase, with one specific exception. Properties located in countries bound to Belgium by a double taxation treaty—such as Spain—remain protected from the higher assessment unless existing bilateral agreements dictate otherwise.