by Ine Coolman and Stephanie Vanmarcke
A Royal Decree was published on 12 October 2023 establishing the scales and methods of application of the administrative fines imposed on taxpayers who fail to spontaneously declare their real estate. These penalty scales also apply to foreign real estate.
Every (complete) owner, usufructuary, leaseholder or proprietor must declare the following events:
The (first) occupation;
The completion of alterations;
Changes to unbuilt property;
The commissioning of new or additional installations.
The events must be declared to the Administration of the Patromonial Documentation for both Belgian and foreign properties. The deadline is 30 days for both Belgian and foreign properties.
The acquisition or sale of a foreign property must be notified to the administration within four months. However, in the case of the acquisition of a newly built or rebuilt property that has not yet been put into use or rented out, the deadline is 30 days from the date on which the property is put into use or rented out.
Non-residents who take up residence in Belgium must declare their foreign property within 30 days of the first day of the tax period.
If the non-declaration or late declaration is due to circumstances beyond the control of the taxpayer, the penalty is zero euros.
In the event of non-declaration or late declaration of (first) occupation, completion of alteration works or alteration of unbuilt immovable property, the following penalty scales apply to both Belgian and foreign immovable property:
EUR 1,000 for a CI of less than EUR 745;
EUR 2,000 for a CI of EUR 745 and less than EUR 2,500;
EUR 3,000 for a CI of EUR 2,500 or more.
These penalty scales also apply to the non-declaration or late declaration of the acquisition or disposal of foreign real estate. As a specific calculation method has been assigned to the cadastral incomes of foreign real estate, they are significantly higher than the CIs of Belgian real estate. As a result, taxpayers with foreign real estate will more quickly fall into the highest penalty scale.
The following penalty scales apply in the case of non-declaration or late declaration of the commissioning of new or additional equipment or tools:
No fine if the CI is less than EUR 159;
EUR 1,000 fine for a CI of EUR 159 or more but less than EUR 745;
EUR 2,000 fine for a CI of EUR 745 or more but less than EUR 2,500;
EUR 3,000 fine for a CI of EUR 2,500 or more.
In our opinions, we rely on current legislation, interpretations and legal doctrine. This does not prevent the administration from disputing them or from changing existing interpretations.
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