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Tax payment by the tenant
Hello,
We are going to move to an apartment in Leuven with one year contract. We do not have the contract directly with the owner.It is through the agency. I guess they are the mediator. Is this common? Does it have any drawbacks? Also in the agreement, they say about local tax which is paid by the tenant. I know property tax is paid by the owner but not sure what is the local tax. I am adding the lines from the agreement in dutch.
''Alle belastingen en taksen die het onroerend goed bezwaren en opgelegd worden door een bestuur of
overheidsinstelling, zullen ten laste vallen van de huurder, met uitzondering van de onroerende
voorheffing.
De gemeentebelasting op tweede verblijven wordt aangerekend aan de huurder. Indien deze belasting
wordt aangerekend en indien de student een attest van inschrijving aan een onderwijsinrichting van
voltijds dagonderwijs voorlegt, wordt de heffing verminderd overeenkomstig het gemeentereglement
van 756,50 euro tot een bedrag van 90 euro''
Could anybody help? Thanks in advance.
All taxes and taxes that relate to the property and are imposed by an official agency (municipality, province, regional or federal government), will be borne by the tenant, with the exception of the property tax.
The local tax on second homes is charged to the tenant (if applicable, i.e. if you normally reside elsewhere). If this tax is applicable and if the student receives a certificate of enrollment at a teaching institution of full-time daytime education, the tax will be reduced in accordance with the municipal regulations (currently from € 756.50 to € 90).
Explanation:
- If this is your primary place of residence, you are paying income tax, so no additional taxes.
- If this is NOT your primary place of residence, you pay secondary residence tax, currently €756.50
- If you are a student (full time education), the secondary residence tax is reduced to €90
If this apartment is going to be your primary place of residence, you will potentially liable (subject to your income being high enough) to pay income tax - which will include LOCAL income tax - which is why you have to pay the second residence tax if your primary residence is elsewhere.
There may be other local taxes - water, refuse, for example - to pay or these services may be paid for in another way (having to buy specific bags for refuse, having water included in the buildings common charges). Get the agent to give you an idea of how much these charges will be and how they are to be paid, and also give you an estimate for the common charges. Note that you will normally be responsible for maintainence and repair within the apartment, including, for example, the annual check on any boiler and/or chimney.
Finally, if you were to use the apartment for ANY business purpose ("working from home", for example), you will, under the terms of the agreement, be liable for paying the extra property tax (linked to the rent) that the landlord would otherwise have to pay.
