Taxation of housing after the sixth state reform | KPMG | BE

Taxation of housing after the sixth state reform

Taxation of housing after the sixth state reform

The taxation of housing has been drastically modified following the sixth state reform. In this article we try to give a limited and clear overview (this is not meant to be a complete and detailed analysis) of regional taxation on housing as it pertains to the (sole and) own dwelling.

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The taxation of housing has been drastically modified following the sixth state reform. In this article we try to give a limited and clear overview (this is not meant to be a complete and detailed analysis) of regional taxation on housing as it pertains to the (sole and) own dwelling.

 

As from assessment year 2015 and due to the sixth state reform, the regions are exclusively responsible for the expenses made for the acquisition or maintenance of the privately-owned dwelling. The competent region is the region where the taxpayer has his tax residence on January 1st of the assessment year. The federal administration does remain responsible for the expenses related to residences other than the "own dwelling".

Housing bonus

With the sixth state reform, the housing bonus for the own dwelling was transformed from a deductible expenditure into a tax reduction. 

As from 2016

The Flemish Region has decided to replace the various fiscal benefits related to the acquisition and maintenance of the "own dwelling" with one single fiscal benefit, "the integrated housing bonus”. The condition of "sole" dwelling has been removed.

 

The Brussels-Capital Region and the Walloon Region, however, have decided not to change the existing home deduction rules. In addition, the additional interest and the building savings reductions can, in both regions, be applied.

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