What are municipal and regional taxes?
1. Municipal taxes
If you are a self-employed professional established in Brussels, you also pay a municipal tax on top of your personal income tax. It consists of two parts: a supplementary municipal tax and some specific taxes.
The supplementary municipal tax covers city council expenses and funds investments. These can include improved services for the citizens or highway maintenance, for example.
The supplementary municipal tax is made up of 3 parts:
- a percentage of personal income tax
- a percentage of the property tax
- traffic taxes
The 19 Brussels municipalities each choose separately how many taxes they levy. You pay the supplementary municipal tax together with the personal income tax.
On top of that, each municipality charges its own taxes. In this case, the municipality council can decide the tax rates and choose which activities are subject to additional taxes. For example, the amount you pay for a new identity card differs from municipality to municipality. You pay that tax locally.
2. Regional taxes
In addition to the Brussels municipalities, the Brussels-Capital Region may also levy a tax, specifically on ‘non-residential floor space’.
Who pays the regional tax?
Anyone who, on January 1st, owns a (part of a) built-up property that is not used for residential purposes and is located on the territory of the Brussels-Capital Region.
Certain properties are not subject to the tax (FR). These include sports halls, hospitals and schools, for instance.
How much tax do you pay?
The tax is always based on your situation on January 1st. For 2019, you pay €8.90 per m² but there is no tax up to the first 300 m². If you use the property for industrial or artisanal activities, you will only pay the tax if the floor area exceeds 2,500 m². The total tax may not exceed 14% of the indexed cadastral income.
How does it work?
Every year before October 1st, you will receive a declaration form in which you will enter the floor area. The tax is calculated on the basis of this data.
And what if the form does not come in the post? If that is the case, you need to request the form yourself, and that before December 31st of that year. Otherwise, the region will calculate the tax independently and on the basis of the available (and sometimes outdated) data.
After you receive the tax assessment, you have two months to pay the tax. If you exceed that deadline, the region will initially charge a substantial penalty. A bailiff may even come to seize your goods if you persist in not paying the tax.
Need more info?
Visit the website (in french/dutch) of Bruxelles Fiscalité - Brussel Fiscaliteit.