Belgium reminds residents to declare property owned abroad

Yesterday 14:22

By: Azzat Manal

Belgium reminds residents to declare property owned abroad

Belgian residents who own real estate outside the country are once again being reminded of their obligation to report such assets to the Belgian tax authorities. The requirement directly concerns members of the Moroccan community in Belgium who own houses, apartments, land or other property in Morocco, whether the assets are occupied, used as holiday homes, left vacant or acquired through inheritance.

Under Belgium's tax rules, the reporting obligation does not depend on whether the property generates income. Individuals who own a property abroad or hold a real right allowing them to benefit from it are required to provide the relevant information to the authorities. Changes affecting the property, including its sale, construction work, expansion or major conversion, must also be reported when they can influence its assessed value.

The system was introduced as part of a reform that came into effect in 2021, bringing the treatment of foreign real estate closer to that applied to properties located in Belgium. Once a foreign property is reported, the Belgian administration determines a notional cadastral income, which is then taken into account in the taxpayer's annual tax declaration, even when the property is not rented and produces no actual income.

The calculation is based on specific valuation rules. When the relevant historical value is unavailable, Belgian authorities can use the property's current market value and convert it to an estimated 1975 value through an adjustment coefficient. A separate method applies to undeveloped land, while purchase prices, inheritance values or gift values may also be considered depending on the circumstances.

Declarations can be submitted electronically through Belgium's official tax platform or by using the designated paper form for foreign property. Taxpayers are generally required to provide information such as the property's location, the nature of their ownership rights, the acquisition date, their ownership share and the property's relevant value.

The obligation also applies to jointly owned property. Each Belgian taxpayer concerned must report their individual share rather than treating the jointly owned asset as a single declaration.

For members of the Moroccan diaspora living in Belgium, owning property in Morocco therefore does not remove the reporting requirement. Belgium and Morocco are bound by a double-taxation agreement, which regulates how income from real estate is treated for tax purposes. Depending on the applicable conditions, income taxable in Morocco may be exempt from Belgian taxation while still being taken into account when determining the tax rate applicable to other income.

The existence of the bilateral tax agreement consequently does not eliminate the obligation to declare foreign property. Instead, it determines how the property may affect the taxpayer's final Belgian tax position.

Belgian tax authorities also advise residents who receive a simplified tax proposal to carefully check whether their foreign property has been correctly included. Any missing or inaccurate information should be corrected through the appropriate procedure.

The reminder is particularly relevant for Moroccan residents in Belgium who have accumulated property in Morocco over the years. Checking ownership records, declared information and the tax treatment of each asset can help ensure that annual tax filings accurately reflect their financial situation.