In Belgium, cadastral income (KI) is a term often used in real estate transactions and tax returns. But what exactly does it mean, and why is it important? In this blog article, we dive deeper into the concept of cadastral income in Belgium and give you an overview of the most important things you need to know.
What is cadastral income?
Cadastral income, often abbreviated as KI, is an estimate of the average annual net income a property could generate. In other words, it is an estimated rental value of the property. The KI is determined by the General Administration of Patrimony Documentation (or the Land Registry) and is used as the basis for tax calculations in Belgium.
The land registry indexes your cadastral income annually.
How much is the cadastral income of my property?
The Land Registry administration determines the cadastral income of your property. It does this based on several factors, including the property’s location, building type, size, state of repair and other relevant characteristics. The KI is not based on the actual rental income of the property, but rather on the estimated annual net rental income you would receive if you rented out the property.
You can find the non-indexed cadastral income:
- in the deed of purchase of your home.
- On your property tax assessment notice.
- On your personal income tax bill.
- by logging on to My Dossier on the platform of the Flemish Tax Office and clicking through to Onroerende Voorheffing > The latest kohierartikel.
- by logging on to MyMinfin and requesting your property details.
- For new construction or after a renovation: on the service of cadastral income you received from the land registry.
Why is cadastral income important?
The KI has several important applications in Belgium:
- Property tax: The KI is the basis for calculating the property tax, a tax levied on property in Belgium. The higher the KI of a property, the higher the property tax will be.
- Tax return: The KI is also used in tax returns. It is included in the owner’s tax return as an indication of the income they might receive from the property.
- Rental Value: The KI can also be of interest to tenants and landlords. It gives an idea of what a reasonable rent would be for a particular property.
- Cadastral extract: A cadastral extract is often used in real estate transactions. This lists the KI, which can help potential buyers assess the costs and benefits of a property.
Can you check the cadastral income?
You can check the KI of your property on the cadastral extract or via the website of the FPS Finances. Through this link, you can log into MyMinfin and request the KI of your property. If the KI does not correspond to the real situation of the property, submit a request to have it revised. This is for example if the property has been renovated and the rental value has changed as a result.
As an owner, it is important to know and check the KI of your property. This way you make sure it matches the actual situation of the property.
Can you adjust the cadastral income?
In a number of cases you have to have your KI adjusted, below are three examples. More info on this declaration can be found through the FPS Finance service.
- If the property changed physically: you remodeled, renovated or demolished.
- If the initial cadastral income was incorrect.
- If the property has changed destination: from commercial property to residential property.
What about cadastral income after conversions?
If you have done renovations, it is important to have your cadastral income reviewed, as renovations affect the rental value of your property. Thus, if you add on (or remodel), the KI may increase. After demolition work, the KI may also decrease.
Note: Do not cheat with this by not reporting anything! Always do this within 30 days of finishing the construction works, otherwise you can expect a hefty fine. Normally, the municipality is aware of the construction works through a permit application, for example, and will send you a letter as a reminder. But even without this letter, it is your duty as a citizen to get it right.
Adjusting your cadastral income after renovations (6 steps):
1. Find the contact information of the land registry administration
Contact the cadastral office responsible for your region. Find the contact details of the local office on the FPS Finance website. Visiting physically is only necessary these days if they cannot help you over the phone.
2. Collect evidence
Before you contact the land registry office, it is important to gather detailed evidence about the renovations you have made. This includes building permits, invoices, photos before and after the renovations, and other documents that show what changes you just made to the property.
3. Make a request for review
Submit an application for revision of the KI to the land registry office. In this application, you must provide all supporting documents and information about the renovations so that the cadastral office can make a new estimate of the CI based on the changed rental value of the property.
4. Wait for the review
The cadastral office will review your application and propose a new KI based on the conversions. This may take some time, so be patient.
5. Check the new KI
After the review, the cadastral office will propose a new KI. Check this carefully to make sure it matches the renovations and the actual rental value of the property.
6. Filing any appeals
If you disagree with the proposed new KI, you have the right to appeal to the administrative courts. You must file an objection within the deadline and document the reasons for your objection.
Note: If you remodel with the goal of making your home more energy efficient, your cadastral income does not increase. Consider modifications such as insulating floors or roofs, having new windows installed, solar panels on your roof or purchasing a solar water heater.
So when buying a house, it’s best to also check the cadastral income so you know what you have to pay. And are you already aware of the exact notary fees involved in buying a home?
Sources: Belgium, Dewaele, Federal Government FINANCE, Notary & Flanders
Would you like to cite this article as a source? Then use:
Biets, R. (2024, November 5). All about cadastral income. Apartment.be. Consulted on (date XX/XX/202X), from https://www.appartement.be/alles-over-het-kadastraal-inkomen/