Tax reform announced in the Brussels Region


The Brussels Capital Region has recently presented its budget for 2016. Amongst others, a tax reform was announced, which will be implemented partially in 2016 and partially in 2017.

In 2016, the lump-sum regional tax of EUR 89 and the additional levy of 1% on the federal personal income taxes will be abolished. Real estate taxes will, however, increase by 12%, but residents of the Brussels Region will be entitled to a reduction of EUR 120 in this respect. Also in 2016, registration duties in relation to the gift (donation) of immovable goods will be lowered.

In 2017, the tax relief for the sole and own dwelling will be abolished. Instead, when purchasing an own dwelling in the Brussels Region, buyers will be entitled to a reduction of registration duties of up to EUR 22.500,00, subject to certain limitations. Furthermore, the regional surcharges on the personal income taxes will be lowered by half a percentage.

Finally, the purchase price of service vouchers (i.e. EUR 9 per voucher) will be maintained until 2020, and the tax relief will be limited to 15%.