The Flemish Region applies a severe tax on unoccupied or abandoned buildings owned by a company. This measure, aimed at combating urban decay, can result in extremely high costs for owners. Learn how to anticipate and avoid this tax with the informed advice of our experts.
What is the Flemish Tax on Unoccupied Business Buildings?
Any building listed as such in the Inventory of totally or partially unoccupied and/or abandoned business premises is subject to this regional tax. Each registration is notified via a registration certificate, usually sent by registered mail between April and June.
Once the property is registered and if registered for three consecutive years, you face significant tax consequences.
Why is this Tax so High?
The Flemish tax on unoccupied properties is known for its particularly high amount. Let’s take a concrete example:
A building listed in the inventory in 2022, 2023, and 2024, located in Turnhout (with 100 additional centimes) and having an unindexed cadastral income of €30,000, will generate an unoccupied property tax of €159,426 for the 2025 tax year.
This figure illustrates how devastating the financial impact can be for a company.
A Complex Procedure with Multiple Pitfalls
The procedure related to the taxation of unoccupied properties is long, complex, and strict. It involves numerous administrative formalities and strict deadlines. The slightest error, omission, or negligence can lead to automatic taxation, which is extremely difficult to challenge.
Please note: Once initiated, this process can literally “pursue” you for several years!
How to Avoid the Tax on Unoccupied Properties?
Fortunately, there are solutions to avoid or limit this taxation. Through a personalized approach, our experts can:
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Analyze your specific situation.
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Identify strategies to avoid or reduce the tax.
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Assist you at each step of the administrative procedure.
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Address other sensitive aspects, such as the revision of cadastral income or the optimization of property tax.
Do not Let your Building Become a Financial Burden
If one of your buildings is totally or partially unoccupied, it is crucial to act quickly. The longer you wait, the higher the risks of taxation.
Contact our experts now for a comprehensive analysis of your case. Together, we will find the best solution to protect your financial interests.
