When you own or partially own a Spanish home, it is important not to forget about declaring your Spanish home. What do you have to think about when you declare your taxes in Belgium and how does this work exactly? You can read more about this in the article below.

What is cadastral income?

The cadastral income, also abbreviated as KI, of your foreign residence is required to be declared in the tax declaration in Belgium. This is an amount that the Belgian government assigns to your property and uses when calculating your income tax.

It is based on today’s sales value, converted back to 1975 and reduced to a rental value. This does not mean that you have to pay tax on your Spanish income, but it determines what tax rates apply to your other income in Belgium because of the progression proviso.

How do you find out the cadastral income?

Have you bought, inherited or received a home in Spain? Then it is important you spontaneously let the tax authorities know within four months what percentage of the property is yours.

If you bought the property together with someone else, the other person must do the same. If you own half, you each declare half. If you have bare ownership, you do not have to file a declaration. Then it is up to the usufructuary(s) to do so.

Once the above things are taken care of, the Spanish tax authorities will calculate the KI (cadastral income) of the home abroad. The CI is important because it is used to calculate how much property tax (IBI) you have to pay each year.

What do you need when declaring your Spanish home?

To fill out the tax document for your home in Spain, you need a few things. First, the address, how much it is worth and what percentage of the house is yours. Then, within four months of going to the notary and signing the deed, declare the home to the Belgian tax authorities.

Do you disagree with the KI (cadastral income) the tax authorities assign to your house? Then you can file an objection. Do this within two months after the date on which you received the CI with a registered letter addressed to the FPS Finance – AAPD – Foreign CI Cell, at the address: Gaston Crommenlaan 6 – bus 459, 9050 Ledeberg.

How to determine and fill in the CI on your tax letter?

Every year it is important to pay the tax in Belgium. To calculate this tax correctly for your second home in Spain, you need to know what the CI (cadastral income) of your home is. You can determine this by dividing the value of your home by 100,000 and then multiplying by about 350 euros.

Here’s an example: let’s assume that your house is worth 200,000 euros. The mortgage income is calculated as follows: 200,000 / 100,000 x 350 = 700 euros.

You fill in the cadastral income on the tax form under box III, points A2 and B1 with the code 1106-58. If you share the house with other persons, then you enter only your part of the KI. You may not reduce the KI by other taxes such as IBI or Suma.

Do you disagree with the KI assigned? Then you can object to the FPS Finance within two months of receiving the official amount. You do this by sending a registered letter to the above address.

Would you like more fiscal and legal information and get inspiration for a second home in Spain? Then visit the Second Home Expo. Check the website for the different dates and the exhibitor list.