Having children comes with its own set of challenges and responsibilities. However, in Belgium, there’s a silver lining for parents when it comes to property taxes. Depending on the region you reside in, having dependent children can lead to significant reductions in your property tax, known as "précompte immobilier." Let’s explore these benefits region by region and understand the implications for separated parents.
Flanders Region
In Flanders, if you have at least two children registered at the same address within the same family as of January 1st of the tax year, you’re eligible for a property tax reduction. These children must also be entitled to family benefits. Any changes during the year, such as a child moving out or a new birth, aren’t considered. The reduction only applies to the primary residence where the children are registered, not to any secondary homes the family might use.
The base reduction amount is a flat rate of 8 euros per child. This amount will be indexed starting from the tax year 2024. Additionally, this base reduction is further increased by the province and municipalities. For children with a recognized disability, the reduction is doubled. A specific online tool is available to help you calculate the exact reduction for your situation.
For separated parents
Separated parents have options. They can either decide amongst themselves how to distribute the reduction after it’s granted based on the children’s registered address. Alternatively, they can request the Flemish Tax Administration to proportionally divide the reduction between both parents. This requires filling out a specific form available online and providing necessary documents, such as a court decision or a mutual divorce agreement. Both parents must agree to this arrangement. If there’s no agreement, only the parent with whom the children are registered can avail the reduction. It’s crucial to request this division before March 31st. If applied after this date, it will only be effective from the following tax year.
Wallonia and Brussels Regions
In both Wallonia and Brussels, parents can also avail property tax reductions if they have dependent children.
Brussels Region
In Brussels, families with at least two children entitled to family benefits can get a 10% reduction in their property tax. Just like in Flanders, a proportional distribution of the reduction is possible in cases of joint custody, and specific rules apply for children with a recognized disability.
Wallonia Region
In Wallonia, parents with at least two dependent children can benefit from a 125 euros reduction per child. A proportional distribution is also possible for separated parents. For a child with a disability, a 250 euros reduction is applied.
What if you’re a tenant?
If you’re renting a property and meet the criteria, you can still benefit from a property tax reduction. However, the property owner might need to apply for it. This reduction is initially granted to the property owner since it’s applied to their property tax. The owner is then required to deduct this reduction from your rent, ensuring that you, as the tenant, ultimately benefit from the reduction.
Conclusion
Belgium’s property tax reduction system, based on the number of dependent children, is a testament to the country’s commitment to supporting families. By understanding the specifics of each region’s offerings, parents can navigate their financial responsibilities more effectively. Whether you’re a homeowner or a tenant, it’s essential to be aware of these benefits and ensure you’re making the most of them.
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