Unproductive building? Claim your refund of property tax
In an ever-evolving market, buildings can become unexpectedly unproductive: the rental market weakens, renovations take longer than planned, or business models change. But one thing remains the same: the property tax relentlessly continues to accrue. However, this is not always necessary. You can apply for a property tax reduction if your property is unproductive. This can result in a significant tax saving.
Which properties are eligible?
The proportional reduction of property tax due to unproductivity applies to (this no longer applies to the Brussels-Capital Region):
- An unfurnished building located in the Flemish Region or a building located in the Walloon Region;
- for at least 90 days (Flemish Region) or 180[1] days (Walloon Region);
- has not been used at all and has not generated any revenue;
- independent of the will of the taxpayer.
Buildings intended for industrial, craft or commercial purposes in which machines, tools and other movable objects directly related to the activity are located are in principle not considered furnished.
The reduction may apply when an unfurnished home cannot be rented out despite active efforts, a retail space becomes vacant because of the tenant's bankruptcy, a commercial building becomes unusable due to structural damage or renovation work, etc.
What do we mean by unproductivity?
Unproductivity means that a building has not been used for a certain period of time and has not generated any income at all. The unproductivity must be involuntary, which means that it must be the result of circumstances beyond your control.
You can apply for a reduction if your building has been unused and unproductive for at least 90 days (Flemish Region) or 180 days (Walloon Region). These 90 or 180 days do not have to be consecutive - they can be spread out over the year.
How is the reduction calculated?
The reduction in property tax is calculated pro rata based on the duration of the unproductivity. For example, if a building is unproductive for five months, a reduction of 5/12th would apply.
How to apply?
For buildings located in the Flemish Region, any objection to the assessment notice must be received by the Flemish Tax Administration no later than 31 March of the year following the assessment year. For income year 2025, the deadline is therefore 31/03/2026. In the Walloon Region, such objection must be filed within six months following the date of sending of the property tax assessment notice.
Be aware of the vacancy tax
Be aware that in the event of long-term unproductivity, your property may also be registered in the vacancy register and may therefore be subject to the regional or local vacancy tax. This tax is separate from the property tax. Both taxes can therefore exist in parallel.
Conclusion
If your building is unproductive for a certain period of time and has not generated any income, you can apply for a proportional reduction of the property tax. It is therefore worthwhile to actively verify your eligibility and proactively take the necessary steps.
[1] 30 days when the unproductivity is the result of a public natural disaster recognised as such by the Walloon government.
