In our newsflashes of 8 December 2020 and 18 March 2021, we referred to the difference in tax treatment for foreign real estate compared to real estate located in Belgium and to the new way of working by attributing a “Belgian cadastral income (kadastraal inkomen / revenu cadastral)” to each foreign real estate. A cadastral income (or deemed rental income) is essentially a fictitious income that corresponds to the average annual net income that the property would yield to its owner.
At the beginning of the month of March 2021, the Belgian tax authorities announced that a specific declaration can be submitted as of June 2021 to determine the cadastral income of your foreign real estate. The Administration of Measurements & Valuations sent the relevant form last week to approximately 170.000 Belgian resident taxpayers. In this context, it is first of all important to distinguish “as of when exactly” you were the owner of the foreign real estate.
If you already owned property outside Belgium before 1 January 2021, two situations are possible:
- Situation 1: You have already declared the immovable income of your property in your previous Belgian resident tax returns. In such a case, you will receive a declaration form via normal mail as of 15 June 2021 that allows you to determine the cadastral income of your foreign real estate (if your eBox is activated, you will automatically receive a digital form). The deadline to complete the declaration form has been set on 31 December 2021.
- Situation 2: You declare the immovable income of your property for the first time in your Belgian resident tax return in 2021. In that case, you will receive a declaration form in September/October 2021 that will allow the Belgian tax authorities to determine the cadastral income of your foreign real estate (if your eBox is activated, you will automatically receive a digital form). The deadline is also set on 31 December 2021.
If you have purchased a property abroad after 1 January 2021, you have to request a declaration form spontaneously and within 4 months following the purchase date. Please note that two situations are possible:
- During the first half of 2021 you have already reported the purchase of your foreign real estate to the Administration of Measurements & Valuations – Cel Foreign Cadastral Income by email or letter. In such a case, the Belgian tax authorities will soon send you the declaration form. You can also submit the declaration via MyMinfin.
- You still have to declare the purchase of your foreign property. In this case, you can submit your declaration as follows:
- Via MyMinfin: → via My house → Check my immovable data → Declare a foreign property (which is fastest and easiest way);
- Filling this form (NL/FR) and sending it to:
- Via email: email@example.com or
- Via a (registered) letter to:
- FOD FINANCIEN – AAPD – Cel Buitenlands KI – Gaston Crommenlaan 6, bus 459 – 9050 Ledeberg
- SPF Finances – AGDP – Cellule RC étranger, Avenue Prince de Liège, 133 – boîte 459 – 5100 Jambes
After receiving your declaration form, the Administration Measurements & Valuations will determine a cadastral income for each real estate (or group of immovable properties) abroad and they will notify you of every cadastral income by registered letter. However, if you do not agree with the cadastral income you have a 2-month window to submit a tax claim (bezwaar / réclamation), in accordance with article 499 of the Belgian Income Tax Code of 1992.
Please note that the new cadastral income must only be included in the Belgian resident tax return as of assessment year 2022 (income year 2021). If the property abroad is purchased in the course of 2021, taxpayers will only need to include a prorated value of the cadastral income in their Belgian resident income tax return (assessment year 2022 – income year 2021). For the Belgian resident tax return in relation to income year 2020, there are no changes concerning income from foreign real estate (as the old rules can still be applied).
In case of any questions, please do not hesitate to contact Sandrine Schaumont or Philip Maertens.