Real estate taxation in Brussels remains a complex and shifting terrain. Despite the fact that the Brussels Region has been entrusted with the management of property withholding tax, which is supposed to clarify regional tax competences, the capital’s landscape continues to give rise to uncertainty and controversy, particularly around double taxation.
On February 26, 2025, the Brussels Court of Appeal handed down a landmark ruling in a dispute concerning the regional tax on areas not used for residential purposes (“TRB”) provided for in the ordinance of July 23, 1992. As this ruling may affect many taxpayers, we are here to provide you with the most essential updates.
The taxpayer’s argument
The taxpayer contested the TRB on the grounds that it affected a matter already taxed by the federal government, through corporate income tax and withholding tax on real estate. He thus denounced a violation of the non bis in idem principle, according to which the same matter cannot be taxed twice.
The Court of Appeal’s response
- With regard to corporate income tax, the Court ruled that there is no double taxation: the taxable matter is different. Corporate income tax is based on the income from the property, whereas TRB is based on the holding of a real right or simple possession.
- On the other hand, when it comes to withholding tax on real estate, the Court recognizes a risk of overlap. The two taxes share the same taxable subject (ownership of a real right) and are calculated on the basis of cadastral income. However, the withholding tax on real estate is no longer truly a tax on income, since it is due independently of any income actually received.
The Court of Appeal therefore decided to refer a question to the Constitutional Court for a preliminary ruling, in order to determine whether the TRB violates the rules governing the division of fiscal powers, calling into question the coexistence of this tax with the withholding tax on real estate.
Why does this concern you?
- This decision could enable the taxpayers concerned to obtain appeals and even refunds.
- It also reminds us of the importance of securing your real estate tax positions.
Our team is at your side to decipher these changes and transform tax complexity into opportunities.
Would you like to discuss this in more detail with our experts? Don’t hesitate to contact us.
