Vacancy without income? Think ahead about a proportional reduction of property tax!

Was your property vacant for a period and did it generate no income during that time? In certain cases, you can apply for a proportional reduction of property tax. This reduction is calculated based on the number of months of unproductivity. You have until March 31, 2026 to submit this application for properties that were vacant in 2025.

Please note: property tax is a regional competence. Below we only explain the Flemish regulations regarding unproductivity.

When are you eligible?

To obtain a proportional reduction of property tax, the property must be a built property (undeveloped plots are excluded) and the following conditions must be met:

1. Vacancy and no income: The property must have actually been vacant and must not have generated any income.

2. Minimum 90 days unproductive: The vacancy must be at least 90 days. This period does not necessarily have to be consecutive. If unproductivity lasts longer than 12 consecutive months, you must also demonstrate that this was involuntary (i.e., due to circumstances beyond your control). This can be evidenced, for example, by an (interim) judgment in proceedings preventing occupation, a soil contamination report, consecutive rental or sale advertisements spread over the entire period of unproductivity, etc.

3. Unfurnished: In principle, a property only qualifies if it is unfurnished. For buildings with an industrial, artisanal or commercial purpose, there are exceptions: under certain circumstances, the building does not need to be completely empty.

Also possible in case of destruction, equipment and machinery

In addition to "classic" vacancy, a reduction can also apply in other situations:

• Destroyed properties: Even in case of (partial) destruction, a proportional reduction may be possible, provided specific conditions are met. The destroyed part must represent at least 25% of the cadastral income and the destruction must be the result of a disaster (e.g., fire or collapse).

• Equipment and machinery: A reduction may also be possible for equipment and machinery when it represents at least 25% of the cadastral income and was out of operation for at least 90 days in a calendar year. The conditions differ depending on whether it concerns destruction (not necessarily due to a disaster) or inactivity (not necessarily involuntary).

How do you apply?

If you believe you are entitled to a proportional reduction, you can file an objection with the Flemish Tax Service.

The deadline for filing an objection runs until March 31 of the year following the tax year to which the application relates (e.g., vacancy in 2025 → deadline March 31, 2026). If you receive the tax assessment in a different year than the year to which the assessment relates, the regular objection period of three months applies.

Upon approval, the property tax is proportionally reduced in relation to the duration of the unproductivity.

Questions or need support?

Do you have questions or would you like guidance in drafting and submitting such an objection? We are happy to help you.

Feel free to ask your further questions to property manager SEBAS.

Source: https://www.tiberghien.com/nl/4528/proportionele-vermindering-onroerende-voorheffing