Tax Haven Flanders

La Dernière Heure has discovered a tax haven next door : Flanders.

The occasion is that since 1 July, the gift tax on houses and apartments has been cut.  The French-language newspaper La DH made a list of the tax differences between the three regions. Officallly Brussels, Wallonia and Flanders are not supposed to compete with each other by imposing lower taxes, there are quite a few differences :

  1. the tax on the registration of cars. For heavy cars, such as a BMW X5 (4 litres diesel (x)drive at a cost of €80,000) this tax is only €468.90. In Brussels and Wallonia it is € 4,957 euros, ten times as much.
  2. the gift tax on houses and apartments is much lower.
  3. the local tax charged on top of the income tax is usually between 4 and 9%. There are three communes in Belgium that do not charge this “council tax”, these are De Panne, Knokke and Koksijde, all on the Belgian coast in … West Flanders.
  4. no license fee. For years, Belgians had to pay a radio and tv tax. Flanders abolished it over ten years ago, but people in Wallonia still pay the full tax of €100. In Brussels it has merged into the €89 tax due by the head of the household.

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