Recently, the Walloon Government announced a tax reform with respect to the “tax reduction for mortgage loans for the sole and own dwelling”.
In this respect, a so-called system of “chèque habitat” would be introduced. The tax reduction would be limited in time (for maximum 20 years) and depend on the net taxable income of the taxpayers involved. As the taxable income increases, the tax reduction would be lowered. The maximum tax reduction would be capped at EUR 1.520 per year per taxpayer, for taxpayers having a net taxable income of up to EUR 21.000. If the taxable income exceeds EUR 21.000 per year, the tax benefit would be reduced gradually. Taxpayers with a taxable income of above EUR 81.000 per year would not be entitled to the chèque habitat. Moreover, a lump-sum tax benefit of EUR 125 would be granted per dependent child. Furthermore, the chèque habitat would be fully available for the first 10 years of the mortgage loan but be reduced to 50% from the 11th year.
Finally, please note that taxpayers with a mortgage loan concluded before 2016 would keep the benefits of the existing regional tax relief for the sole and own dwelling, whilst the eligible (maximum) amounts for the tax reduction would no longer be subject to indexation.