Non-residents owning real estate in Belgium: obligation to declare Belgian property expanded

A new, stricter, interpretation of the obligation to submit tax returns for non-residents of Belgium was recently published. This interpretation expands the tax return obligation for non-residents, with the result that, at the last minute, more non-residents, who own real estate in Belgium, will have to file a tax return for income year 2023 (assessment year 2024).

PREVIOUS STANDPOINT

A non-resident owner of real estate in Belgium was only taxed in Belgium in two situations.

First of all, taxation was (and is) applicable when one receives professional income taxable in Belgium. This could include a salary or income as a company director.

But even if one does not receive income taxable in Belgium, but rents out Belgian real estate and the taxable income of this real estate exceeds EUR 2,500, one is obliged to file a non-resident tax return.

NEW STANDPOINT

According to the new standpoint, it is no longer required that the professional income is taxable in Belgium. Both non-residents receiving income taxable in Belgium and non-residents receiving Belgian income that is exempt in Belgium as well as owning Belgian real estate will have to file a tax return.

This means that non-residents who receive Belgian income exempt under a tax treaty, will now be taxed on their Belgian real estate. Bear in mind that in this case the €2,500 limit does not come into play.

However, the new standpoint does not mean that every professional income from anywhere in the world leads to the obligation to declare Belgian real estate income. It is important to stress that this new tax return obligation only applies to professional income of Belgian origin, such as a Belgian pension or salary.

In practice, this new interpretation will mainly affect Belgians who moved abroad and receive a Belgian pension not taxable in Belgium and still own Belgian real estate. They will now be obliged to file a non-resident tax return and pay tax.

Note that this new interpretation only affects non-residents owning Belgian real estate. Other non-residents remain unaffected.

CONCLUSION

This new scheme is already in force as of income year 2023 (assessment year 2024). If you earn professional income of Belgian origin (whether exempt or not) and own Belgian real estate, you will still have to include your Belgian real estate in your tax return this year.

The deadline for the non-resident tax return is 22 November 2024.

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