No photos, no tax: municipalities reminded of their obligations

(Brussels Court of Appeal judgment of November 13, 2024)

Some Belgian municipalities have introduced a tax on fully and/or partially unoccupied buildings. This is notably the case for the municipalities of Meise, Ternat, Zemst, Wemmel and Vilvoorde, which have adopted a tax regulation applicable to their territory.

The presence within the municipal territory of fully or partially unoccupied buildings, as well as abandoned land, is likely, for these municipalities, to harm the attractiveness of the neighborhoods concerned, particularly when these properties are located along the public roadway, and to hinder both residential development and commercial and economic activities.

However, these taxes impose a considerable tax burden on certain taxpayers.

On November 13, 2024, the Brussels Court of Appeal forcefully recalled that these instruments, although pursuing a legitimate objective, can only take effect if they strictly comply with the formal requirements set out in the applicable regulations.

In the case that gave rise to this judgment, a building had been entered in a municipal register of unoccupied buildings. This registration led to the application of the corresponding municipal tax. The owner company contested this decision, arguing that the building was rented out under a registered lease and that the municipality had not carried out any serious factual investigation. Above all, it raised a fundamental irregularity: the administrative act establishing the vacancy did not include any photographic file, even though both the municipal regulation and a Flemish decree of July 10, 2009, expressly require such a document.

In this regard, the Court of Appeal recalls the applicable legal framework. The administrative act underlying an entry in the register of unoccupied buildings must include three inseparable elements: a numbered act, a descriptive report, and a photographic file intended to materially support the finding of vacancy. This photographic file constitutes a substantial formal requirement; its absence directly affects the validity of the act.

However, in this case, while the act was indeed numbered, it contained no photographs and did not even refer to such a file. The documents produced by the municipality (mere printouts from the population register) could not remedy this deficiency.

The legal consequence is clear: failing to comply with an essential formal condition, the administrative act is irregular and cannot serve as a valid basis for the registration of the building in the register of unoccupied buildings. This irregularity alone is sufficient to lead to the annulment of the tax, without the Court needing to examine the other arguments raised by the parties, in particular those relating to the actual occupation of the property.

Capital gains tax

Capital gains: the 10% tax is coming (for real this time)

Here we are.

The federal government has announced the introduction of a 10% tax on capital gains
realized on financial assets. This is a major reform that will impact many
investors.

Which products are affected?

The tax targets capital gains on financial assets, divided into four main categories:

Financial instruments
Shares (listed or unlisted), bonds, funds, ETFs, derivatives (options, futures,
swaps), savings certificates.

Insurance contracts
Life insurance (branches 21, 23, 26, and 44).

Crypto-assets
Coins, tokens, NFTs, stablecoins.

Currencies and similar instruments
Investment gold, central bank digital currencies (e.g., future digital euro), electronic money outside payment accounts.

Important exclusions to be aware of

However, the legislator has provided for several notable exemptions:

• pension savings, long-term savings, and group insurance;
• valuables (silver, jewelry, works of art, etc.), excluding investment gold;
• income already subject to 30% withholding tax (dividends, interest, coupons);
• income already subject to the Cayman tax;
• capital gains realized on the sale of jointly owned property within three
  years of a death, divorce, or the end of a legal or de facto cohabitation.

A partial exemption

Good news (at least in part):
the first €10,000 of capital gains per person are not taxed (including for
married couples with a joint account).

This exemption can be carried forward for a maximum period of five years.

How will the tax be collected?

The tax will take the form of a 10% withholding tax, deducted directly by
the financial institution or insurer, without immediate application of the exemption.

It will then be up to the taxpayer to request a refund of the exempt portion
via their tax return.

When will it come into effect?

The effective date is announced as January 1, 2026.

Please note, however, that no final text has yet been published. The government
is nevertheless considering retroactive application, taking into account the capital gains
as of December 31, 2025, as soon as the law is published.

Do you have any doubts, concerns, or questions?

We are here to help you with the process!