Explained: What does Cadastral Income mean?

Welcome to the new series 'explained'. In this series we examine real estate concepts and explain them to you. This week we provide more information about Cadastral Income.

The cadastral income (KI) is an estimated annual net rental value of a property, such as a house or a piece of land. This estimate corresponds to the annual net rental income that one would receive for the piece of real estate in 1975 if it were rented out. To know the current value of the cadastral income, the amount is indexed annually.

The cadastral income is determined by the General Administration of Heritage Documentation (Cadastre), a branch of the Federal Public Service Finance. The AI ​​is used as a basis for various taxes and levies, including property tax and personal income tax.

How is a cadastral income determined?

The AI ​​is determined based on several factors, including the property's location, size, building type and state of repair. The purpose of the AI ​​is to assign a standardized value to real estate, so that taxes and levies can be calculated fairly.

The AI ​​is regularly revised and updated by the land registry administration to take into account changes in the real estate market and the properties of the real estate. It can vary from property to property and can also differ between regions in Belgium such as Flanders, Wallonia and Brussels. To calculate the indexed cadastral income, one must multiply the index coefficient of that year by the non-indexed cadastral income.

For example: 1,200 euros is the non-indexed cadastral income of a home. In 2021, the index coefficient is 1.860. Then the indexed cadastral income is 1,200 * 1,860 = 2,232 euros.

Why is a cadastral income important?

The AI ​​is used in the calculation of property tax, an annual tax paid by the owner of the property, and in the calculation of personal income tax for rental income in the case of rentals. It is important to note that the CI does not necessarily reflect the actual rental price or market value of a property and can therefore often be lower than what an owner might ask for rent or sale.

Where can you consult the cadastral income of your home?

The AI ​​can be found via the government portal 'MyMinFin'. You must go through a number of steps and you can obtain a cadastral extract for a fee. You can also choose to submit a paper application, but this is usually more expensive.

The non-indexed cadastral income can also be found on the property tax and personal tax assessment notice. Furthermore, this information can be obtained in other ways, such as in the purchase deed of the home or by inquiring at the local land registry department.

Can the cadastral income still change?

When the cadastral income is final, it can only be adjusted in a few cases. This can happen if the property has undergone physical adjustments or if errors have been made in the AI ​​that can be demonstrated.

What if you build or renovate a house?

When building a new house or carrying out major renovations with the correct permits, the cadastral income of the home can be recalculated. As the owner, you must inform the Land Registry of this within 30 days after occupancy of the new building (or earlier if rental takes place before occupancy) or within 30 days after completion of the renovation works.

Conversion works include transformation, merger or division of another property or extension. If this is not indicated, an administrative fine may be imposed and criminal prosecution may also take place.

What is the difference between property tax and cadastral income

The cadastral income is determined at the federal level, while the property tax is an annual regional tax. The cadastral income is not paid directly; it serves as a basis for calculating property tax and is also used to determine property income, which is taxed in personal income tax.

Submit an objection against the cadastral income

In two situations one can object to the allocated cadastral income:

• When estimating in the case of new construction.
• During a revision in the case of a renovation of a property.

In both cases, there is a period of 2 months within which the objection must be submitted, from the date of notification of the cadastral income. This date is stated on the document. It is important that the objection is sent by registered letter by post to the 'Measurements and Valuations' administration. The exact address can be found in the service letter.

When submitting an objection, a counter-proposal must be submitted. This means that you must state the cadastral income that you propose yourself. The objection is then investigated. After negotiations with the designated official, an amicable settlement can be reached if an agreement is reached. If no agreement is reached, the Fiscal Mediation Service will attempt to reconcile the two parties.

If an agreement is still not reached, the administration and the taxpayer will jointly appoint 1 or 3 arbitrators, or they can separately submit an application for the appointment of 1 or 3 arbitrators to the justice of the peace. The decision of these referees is binding. Only this ruling can still be challenged by submitting a claim to the court.