Property tax when selling a house in Belgium: who pays what in the year of the sale?

The property tax when you sell a home confuses many sellers: you sell partway through the year, but the tax assessment notice is in your name for the whole year. So who pays which part? In this article you will read how the tax works, how buyer and seller settle it between themselves and what to watch out for as a seller in the preliminary sale agreement (compromis) and at the notary.

What is the property tax and who is it charged to?

The property tax (onroerende voorheffing in Dutch, précompte immobilier in French) is an annual tax on real estate in Belgium. It is calculated on the indexed cadastral income of your home, multiplied by a regional rate and the surcharges of the province and the municipality. As a result, the amount varies widely from one municipality to the next, even for comparable homes. How the cadastral income itself is determined is explained in our article on how cadastral income is calculated.

For sellers, the reference date is what matters. The tax authorities look at the situation on 1 January of the tax year. Whoever owns the property on that date receives the assessment notice for the entire year, even if the home changes hands in March or September. For administrative purposes, the notarial deed is what counts in practice, because the land registry processes the transfer of ownership on the basis of that deed.

Each region sets its own rates, reductions and collection service. In Flanders, the Flemish Tax Administration (Vlaamse Belastingdienst) collects the tax; your assessment notice always shows which service is responsible for your home. Amounts and reductions change regularly, so check them with the official source for your region.

Who pays the property tax in the year of the sale?

As far as the tax authorities are concerned, the seller who owned the property on 1 January remains liable for the full assessment for that year. An agreement between buyer and seller does not change this: if the notice is in your name and nobody pays, the government will come to you.

Between buyer and seller, however, it is common to split the cost fairly. Most preliminary sale agreements include a clause stating that the buyer bears the property tax from the day they take possession of the home, usually the day of the deed. The seller bears the share from 1 January up to that day. The split is made pro rata, in proportion to the number of days.

An example with fictitious figures makes this concrete. Suppose the assessment is 1,200 euros and the deed is signed on 1 July. The seller then bears roughly half and the buyer the other half. If the seller pays the full notice, the buyer reimburses their share of about 600 euros to the seller. If the deed is only signed after 1 January of the following year, the seller also receives an assessment for that new year, which is settled in the same way.

How the notary handles the settlement

The notary usually includes the property tax settlement in the statement of account drawn up at the deed. Besides the sale price, it lists other items, such as the repayment of an outstanding loan and any costs borne by the seller. What you pay at the notary as a seller is covered in our article on notary fees when selling a house.

Often the assessment notice for the current year has not yet been sent on the day of the deed. In that case the notary generally uses the previous year's amount as an estimate. Whether a correction follows later, when the actual amount turns out higher or lower, depends on what buyer and seller agree. If you want to avoid discussion afterwards, have that agreement written explicitly into the preliminary agreement or the deed.

If the notice has already been paid at the time of the deed, the seller receives the buyer's share through the statement of account. If it has not been paid yet, the seller pays it to the tax authorities later. In both cases, keep the assessment notice and the proof of payment, so you can show what was paid and settled if questions arise.

What to check as a seller in the preliminary agreement

The split of the property tax is set out in the preliminary sale agreement, the moment buyer and seller commit to the sale for good. So read that clause before you sign. Three points deserve attention.

First, the date the buyer takes possession. It usually coincides with the deed, but sometimes the buyer gets the keys earlier or the seller stays in the home for a few more weeks. The split normally follows the date of possession, not the date of signing.

Second, the estimate when the notice is missing. Agree whether last year's amount is final or whether a correction will follow. Third, the timing of the deed around the turn of the year. A deed in December or January makes a big difference to who receives the assessment for the new year. Plan that date deliberately, especially if you are also buying a new home.

How much time there usually is between the preliminary agreement and the deed is explained in our article on the period between the preliminary agreement and the deed. An experienced estate agent will put these arrangements correctly into the preliminary agreement as a matter of course. Through ImmoMakelaarVergelijker.be you can compare up to three estate agents in your area free of charge and without obligation.

Reductions and special situations

Depending on the region and your family situation, you may be entitled to a reduction in property tax, for example for dependent children or for a person with a disability in the household. These reductions are also granted on the basis of the situation on 1 January. If you sell during the year, the reduction for that year usually stays on your assessment. In the pro rata settlement with the buyer, the amount actually shown on the notice is often used, so including your reduction. If in doubt, ask the notary which amount the settlement is based on.

If you sell a home you own together with others, for example after an inheritance or a divorce, the assessment is often in the name of all the owners. The split with the buyer stays the same, but the co-owners have to agree among themselves who pays the assessment and how the buyer's share is divided.

If you sell a rented home, the property tax may in principle not be passed on to the tenant under a residential lease. The settlement therefore only takes place between you and the buyer.

In short

The property tax for the year of the sale is charged to whoever owned the home on 1 January. Towards the government, that seller pays the full amount, but through the preliminary agreement and the notary's statement of account the buyer bears their share from the date of possession. Reading the clause in advance and choosing the date of the deed deliberately helps you avoid surprises.

Want to know first what your home is worth? You can request a free valuation. Ready to sell? Then compare recognised estate agents and choose the partner who will follow up your sale properly, from preliminary agreement to deed.