Hotel City Tax in Brussels

In our last Real Estate Quarterly, we mentioned the transfer of the current “City Tax” from the Municipalities to the Region for harmonisation purposes.

The Ordinance entered into force on 1 January 2017 and the tax is due as from 1 February 2017.

Taxpayer and amount of the tax

The tax amounts to 0.0892 EUR per night and per room occupied by a tourist. The rate decreases to 0.0669 EUR in case of home-based accommodation (maximum 5 rooms).

The VAT is charged at a rate of 6% when the tax is recharged to the tourist.

The tax is due on a monthly basis by the operator of the tourist accommodation, but the owner of the accommodation can be jointly liable for the tax if (i) the operator is insolvent (in case of consistent evidences leading to a suspicion of collusion between the owner and the operator), or (ii) the operator remains unknown.

The Ordinance is unclear about the taxation of operator(s) located in Brussels but managing tourist accommodation(s) in the Flemish or the Walloon Region. However, based on the principle of territoriality, Brussels should not be allowed to tax tourist accommodations that are not located on its territory.

Intermediaries as and AirBnB shall be invited to provide the Regional tax administration with available information about the operators, subject to penalties.

A “choice” for the Municipalities

At choice, the Municipalities can replace their current City Tax with an additional taxation on the new Regional tax (opcentiemen / centimes additionnels). As the case may be, Brussels shall take care of the collection of the tax on behalf of the Municipalities, for free.

Parliamentary documents explain however that Brussels already agreed on the transfer of the City Tax with all Municipalities for budgetary reasons.

If the City Tax as such is a Regional tax nondeductible expense for corporate income tax purposes in the hands of the taxpayer, the additional taxation to be redistributed to the Municipalities remains deductible for tax purposes. 

Related : Loyens & Loeff CVBA ( Mr. Antoine BĂ©chaimont )


Mr. Antoine BĂ©chaimont Mr. Antoine BĂ©chaimont
Senior Associate
[email protected]

Click here to see the ad(s)
All articles Indirect tax

Lastest articles Indirect tax

Flemish real estate transfer taxes rate changes as of 2022

On 22 December 2021, the Flemish Parliament approved a series of changes to reduce the registration duties on the sale of ...

Read more

Rent waiver: tax benefit finally put into law

In our previous update, we informed you that the Belgian Government was preparing new support measures in the context of t...

Read more

Détention préventive en matière de douanes et accises non soumise au contrôle de légalité d...

Arrêt de la Cour constitutionnelle du 4 mars 2021 (n°39/2021). En droit fiscal, les droits de douanes et accises...

Read more

Customs seizures | EORI number

Since 15 September 2020, the EORI number has become mandatory to obtain customs measures: the seizure request forms have b...

Customs seizures | EORI number Read more

Lastest articles by Mr. Antoine BĂ©chaimont

New tax treaty between Belgium and France - consequences for the real estate sector?

The new tax treaty between Belgium and France was signed on 9 November 2021. It will enter into force at the end of its ra...

Read more

Transfer taxes in case of cancellation of a sale agreement – Status in the three Regions

Following the Flemish and Walloon Regions, Brussels finally introduced the possibility to cancel an agreement related to t...

Read more

The Specialised Real Estate Investment Fund (SREIF)

The Specialised Real Estate Investment Fund (SREIF) is subject to the Law of 19 April 2014 relating to the alternative inv...

Read more

Powers of taxation of the Belgian Regions: what’s new in Flanders ?

In recent years and as a result of consecutive State reforms, a series of former “national” taxes have been de...

Read more

LexGO Network