New Belgian tax regime for foreign real estate | Grant ... BELGIUM - Cadastral income for properties located outside ... CI of the similiar houses in this area is at least 100% lower. What would be additional thing we could do to further lower it, would joining two small rooms together, to make one, make a difference? Home» Signing of a new treaty for the avoidance of double taxation by Belgium and France Signing of a new treaty for the avoidance of double taxation by Belgium and France Navigation. On property taxation, only slow progress has been made on cadastral reform, under which it is particularly necessary to revise outdated cadastral values.. U području oporezivanja nekretnina ostvaren je tek spor napredak u reformi katastra u okviru koje je osobito potrebno revidirati zastarjele katastarske vrijednosti. In addition, the term WOZ value, Value of Immovable Property, in the Netherlands. A long discussion - taxation in Belgium of employer-provided housing benefits. It contains the records of the country's 9.4 million land parcels and 1 million registered strata or condominium units. How much this tax entails depends on your cadastral income. Against this market value, a capitalization factor of 5.3% is applied in order to obtain the cadastral income. the deemed rental value attributed to the property by the authorities. The housing benefit in kind is valued on a lump-sum basis based on the cadastral income (notional rented value) of the real estate. The flat rate that applies to Belgian real estate is formed by the 'cadastral value', which was determined on 1 January 1975 from an estimate of the net normal rental value determined on the basis of the rent which, should that property be rented out, could have been collected on that date. The index coefficient for the year 2014 is 1.6813. Cadastral income (CI) For recently built properties, the cadastral income (CI) can help you assess the value of your home. Has anyone has an experience of asking the kadaster office to review the current CI? For the year 2020, the factor is set at 15.036. a holiday home), you must declare property income at 140 per cent of its cadastral value. However, for real estate located in Belgium, the taxable income is, generally, calculated by means of the Belgium cadastral value. Notifying the land registry if carrying out building work or making alterations Data are available from 2005 onward for Belgium as well as for the European Union and the majority of European countries. Historically, the cadastral revenue is the theoretical rental value for the property, but (generally speaking) it is the theoretical annual rent the property could have been let for on the open . The land cadastral system is a comprehensive register of real estate's meter-and-bound of a country. Not only does he maintain the cadastral income, but he even extends it to foreign real estate. The house price index can be broken down by new houses and existing . Cadastral income is calculated as follows. Each property in Belgium is registered with the land register ('cadastre'), where it gets a value for tax purposes, the `cadastral revenue'. Property is revalued every 15 years, and an annual index is applied to the last official valuation in order to arrive at the current hypothetical rental income from the property. 49 In that regard, it is apparent from the considerations set out in paragraphs 41 to 45 of the present judgment that, first, the cadastral value of immovable property situated in Belgium is lower than the rent that may be obtained on the Belgian rental market and, secondly, the actual rental value of immovable property corresponds, in . Exemption from tax: Don't define the allowance value, because exemption from tax is always considered 100 percent, and the tax amount is 0 (zero). 0032-3-287-6-287 Search Search. The cadastral income is a fictitious income equal to the average annual normal net rental value of an immovable property at the reference time, i.e., (still) 1 January 1975. Real Estate Tax or IBI Belgian real estate belonging to natural persons that is not rented out or rented out for private purposes is taxed on the basis of the cadastral income (CI). The cadastral income for a property located in Belgium is based on its rental value in 1975. Articles; In an official statement, the Finance Minister announced on the 9 th November 2021 the signing of a new treaty between Belgium and France for the avoidance of double taxation with respect to income and . the rent that could be asked if the real estate was . The latter has not been revised since 1994, the price is 1.1%.. It is therefore the net average rental value in a year for the property at the reference date. and calculate the tax based on that cadastral revenue. This has resulted in numerous disputes between tax payers and the Belgian revenue services. The tax depends on the cadastral value and the category of housing. The housing market in Belgium is growing from strong demand for real estate and a slow pace of housing construction. Local property tax is assessed on 'cadastral income', i.e. This is due to the use of the cadastral values as the tax base, which often fall short of up-to-date market values. For example, if the donor is 65 years old, the bare ownership will be taxed at a rate of only 60% of the value of the property in full ownership, whereas in . The applicable rate, as well as the revision of the cadastral value, are specific to each region. The cost represents approximately 1% of the cadastral value of the property, which is re-evaluated every eight years. Moreover, a circular was published in which the tax authorities explain their interpretation of this law and provide some practical examples. Inheritance tax is due on the value of the entire estate of a deceased person who was domiciled in Belgium. 35 Moreover, the cadastral value of immovable property situated in Belgium is brought closer to the amount of income from immovable property situated in a State other than the Kingdom of Belgium through the deduction from that income of foreign taxes and maintenance and repair costs in the amount of 40%. FR. Each property in Belgium is registered with the land register ('cadastre'), where it gets a value for tax purposes, the `'cadastral revenue'. Based on the above circular, we have been able to establish that the Belgian tax authorities will accept that the gross rental value of your Spanish real property can be determined according to the Spanish "Valor Cadastrale" (cadastral value). The house price index is calculated in accordance with European Regulation 93/2013 of 1st February 2013 establishing owner-occupied housing price indices. For undeveloped land, the cadastral revenue is 2 euros per hectare. The 'cadastre' is actually a government service that makes an overview of all the houses in Belgium. That allows him to tax all overseas properties in exactly the same way as Belgian properties, but without a cadastral revenue equivalent to the Belgian cadastral revenue, that would be hard to implement. In absence of the rental value or normal market value in 1975, the cadastral income of foreign real estate will be determined on the basis of the current normal market value. Up to tax year 2021 (income of 2020) a cadastral income was only attributed to properties located in Belgium (and used to determine the taxable income). In practice, depending on the country, all kinds of formulas appeared to determine this 'rental value'. Hello, we are in the process of buying house, however the cadastral income is crazily high. Since Belgian properties are in general taxed based on their 'cadastral' value, the Belgian authorities will now determine a (fictitious) cadastral income (CI) for each foreign property on the same basis as for a property located in Belgium. If the Belgian tax authorities know you have a property abroad, they will invite you to report this. It's simple. It currently brings together members from 46 countries, covering the whole of geographical Europe. According to ING Bank, house prices in Belgium increased by 3.2% in 2019 and by another 2% in 2020. . Inheritance tax is due on everything one inherits by law or by will from the estate of the deceased. The CI corresponds to the amount that you would earn net if you were to let your property for a year. For owners of real estate located in Belgium, which is not rented or leased to individuals, the tax administration bases the calculation of the tax on the cadastral income (explained below), whereas for real estate located abroad it has been using the (usually higher) "rental value" (i.e. Tax on property and wealth in Belgium. The transfer of ownership or disposal of real estate interests in Belgium is subject to a 12.5% registration duty (10% in the Flemish region), payable by the buyer and calculated on the basis of the contractual price or the market value, whichever is higher. The tax authority calculates a notional rental value for every property in Belgium based on an estimate. Judgment of the Court (Sixth Chamber) of 12 April 2018 — European Commission v Kingdom of Belgium (Case C-110/17) . This 'cadastral value' represents the annual net rental value of such real estate in 1975. The tax treatment of Belgian real estate is linked to the ' cadastral income ' ( revenu cadastral/kadastraal inkomen ). The national cadastral system of Belgium is maintained by the Patrimony Documentation Department inside Federal Public Service (FPS) Finance. A cadastral income is a fictitious income that corresponds to the average annual net income that the property would yield to its owner. The cadastral income is a fictitious income equal to the average annual normal net rental value of an immovable property at the reference time, i.e., (still) 1 January 1975. Resident taxpayers who own a real estate abroad must report their foreign property in their Belgian tax return. Valuations. In Belgium the cadastral income (KI) of immovable property is determined by the Federal Public Service Finance. Over the past 40 years, Troostwijk-Roux Expertises has become one of the largest players in the field of business valuations and insurance valuations in Belgium and abroad. IV. Transfer tax. Since there are no data to determine the market value in 1975 for foreign real estate, a correction factor will be published annually. Basic Principles of the Main Cadastral Systems in the World Jo Henssen FIG Commission 7 Working Group "Cadastre 2014" 7 Seminar Delft, 16 May 1995 Modern Cadastres and Cadastral Innovations In many developing countries there is a tendency to convert communal customary land tenure to in- Cadastre is a primary source of data that can be used when solving land . From now on, every Belgian who owns real estate abroad must determine the rental value of these goods in 1975 . Upon receipt of the declaration (s), the Administration of Measurements and Valuations will determine a cadastral income for each property or group of properties and will notify the taxpayers of each cadastral income by registered letter. The amount is calculated on the presumed annual rental value (revenue cadastral/kadastraal inkomen) that is attributed to the property by local authorities.The tax paid varies according to the commune and the region. In the case of your own home, you're allowed to deduct from your mortgage pay back (capital + interest) from your income. Historically, the cadastral revenue is the theoretical rental value for the property, but (generally speaking) it is the theoretical annual rent the property could have been let for on the open . Land cadastral systems in Netherlands. The cadastral income is not a real income, but a fictitious rental income that is assigned to each immovable property (buildings, grounds, etc. Tax on immovable property is levied on the cadastral value of the property at rates ranging from 1.25% to 2.5% depending on the location. So, in a particular property with assigned Cadastral Value 35.000 EUR, then, the value can be increased a 10 % . 4 Hence, the implicit recurrent property tax rate is well below 0.5% (of the stock of real estate) in the euro . For example, if the tax rate is 10 percent, and the allowance . It is specified that the law no longer allows taxes due abroad on these same properties to be offset against the cadastral value calculated in Belgium and that the 40% surcharge remains due for built-up property. Belgian cadastral income and French cadastral income are comparable, but cadastral income is, as a general rule, lower than rental value. If you want to learn more about the non-resident tax and how it works, you can do it here. 35 Moreover, the cadastral value of immovable property situated in Belgium is brought closer to the amount of income from immovable property situated in a State other than the Kingdom of Belgium through the deduction from that income of foreign taxes and maintenance and repair costs in the amount of 40%. It usually includes details of the ownership, tenure, precise location, dimensions and the value of individual parcels of land. Taxpayers will have the opportunity to object to the cadastral income notified within a period of 2 months. The rise of this form of mapping and its social and legal value in . In the case that the housing was provided by a private person, the taxable value of the benefit will be calculated by taking the indexed cadastral income of . The amount is calculated on the presumed annual rental value (revenue cadastral/kadastraal inkomen) that is attributed to the property by local authorities.The tax paid varies according to the commune and the region. The agency for this register ( het Kadastraal bestuur/l'administration Cadastrale) gives each property a notional annual rental income value, based on the size, characteristics and state of the building, and also its location. It gives an indication of the value of the immovable property. Cadastral values in Germany and Austria are particularly outdated - stemming from the 1960s and 1970s, respectively. Reduction of tax rate: Define the percentage of the tax rate reduction. Taxation of housing in Belgium . This is the market value, obtained under normal market conditions (between independent parties), excluding additional costs such as taxes and notary fees. • Litigation/Dispute resolution • Financial reporting: in accordance with international standards, the market value of any company's assets is determined. Rates generally range between 20% and 50% of the 'indexed cadastral income'. This is called the property tax. The CM Regulation No 711 "Procedure on selecting tenders and entering into agreements regarding the rent of residential premises or residential houses" of 29 August 2006, foresees the procedure thereby municipalities shall exercise the rights to reach an agreement with owners or possessors of residential houses regarding the rent of unrented residential houses or unrented individual . That is the KI, Cadastral Income, which is used in Belgium. Belgian inheritance tax rules follow the inheritance rules. 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