Cadastral value in Belgium: what actually exists

Looking for how the cadastral value of your home is determined in Belgium? The short answer: Belgium has no official "cadastral value". Many countries have a yearly official valuation of every home for local taxes, such as the WOZ value in the Netherlands. Belgium does not. The Belgian tax authorities work with two other concepts instead: the cadastral income and the market value for tax purposes (in Dutch "venale waarde", in French "valeur vénale"). On top of that there is the market value, which is what a buyer actually pays.

Below you will find what each term means, who sets it and what it is used for. We finish with what it means if you want to sell your home.

Cadastral income: not a value, but a notional income

The Belgian concept closest to a tax base for property is the cadastral income (in Dutch "kadastraal inkomen", in French "revenu cadastral"). But the cadastral income is not the value of your home. It is a notional annual net rental income your property is assumed to generate.

• Who sets it? The General Administration of Patrimonial Documentation of the Federal Public Service Finance.
• What is it based on? The rental value on the reference date of 1 January 1975. There has been no general revaluation since. It is, however, indexed every year.
• When does it change? Mainly after work that substantially changes the property, such as an extension or a major renovation.
• What is it used for? Property tax, the taxation of private rental income, and as a condition for some tax benefits.

Because it rests on an old reference date, the cadastral income says little about what your home is worth today. Two houses with a similar cadastral income can sell for very different prices. The calculation is explained in how cadastral income is calculated.

You can find your cadastral income on your property tax assessment notice and in MyMinfin, the online portal of the tax authorities.

Market value for tax purposes: the value the taxman uses

Whenever tax is charged on the value of a property, the authorities use the "venale waarde". This is the price a property would fetch in a normal sale, under normal conditions and after proper marketing.

It applies to:

• Registration duties: calculated on the purchase price, or on this value if it is higher.
• Inheritance tax: the property is included in the estate return at its value on the date of death.
• Gift tax: for a gift of property, this value also applies.

Nobody sends you a yearly letter stating this value for your home. It is set at the moment of the transaction, by the price, a valuation or the tax return. If the administration considers a declared value too low, it can order a control valuation. The difference between price and tax value is explained in sale price versus market value.

Market value and asking price

Market value is what buyers are willing to pay today. It depends on location, condition, floor area, the energy performance certificate (EPC) and above all on recent sales of comparable homes nearby. An estate agent or a notary can estimate it, and a certified surveyor can produce a formal report. Which option suits you is covered in valuation by a notary or an estate agent.

The terms side by side

Term	Who sets it?	Used for	How often?
Cadastral income (Belgium)	Federal Public Service Finance	Property tax, taxation of rental income	Set once, then indexed
Market value for tax purposes (Belgium)	Price, valuation or tax return, checked by the authorities	Registration duties, inheritance and gift tax	At the time of the transaction
Market value	The market, estimated by an agent, notary or surveyor	Asking price and negotiation	Changes constantly

What this means when you sell

As a seller, all three Belgian concepts affect you:

• The cadastral income is in your sales file. Buyers use it to estimate the annual property tax. A low cadastral income does not mean your home is worth little.
• The market value for tax purposes matters to the buyer, who pays registration duties on the price or on that value if it is higher. A sale far below market price can therefore attract questions from the tax authorities.
• The market value sets your asking price. Too high and your home sits on the market. Too low and you leave money on the table.

Selling an inherited home shortly after a death? The sale price will then be compared with the value stated in the estate return. A large gap can lead to questions or a correction, so align the declared value with a realistic valuation. For more, read inheriting a property in Belgium.

Finding out what your home is really worth

The cadastral income won't help you set a price, and there is no official cadastral value in Belgium. For the market value you need someone who knows the local market. Start with a free valuation of your home. Planning to sell? Compare estate agents in your area. You get at most three verified agencies that know your neighbourhood.

Want to see what the tax authorities know about your home first? Check MyMinfin or your latest property tax assessment notice.

Ready for the next step? Compare agents and sell at a realistic price.