Property tax: tax relief and exemption for the elderly and disabled in 2023

You own real estate? In this case, you are liable for property tax. This is a local tax payable annually by the owners on the 1^er January of the taxation year. It also concerns an apartment, a house, a garage or a plot (property tax on the building, TFPB). You have to pay it in October.

The 2023 budget provides for a cap on the tax on the principal residence, and several cases of exemption or rebate, for example in favor of people who are disabled or over 75 years of age, or for certain types of property. It removes the cohabitation conditions required to qualify for relief.

Persons exempt from property tax on the principal residence

The exemption from property tax is subject to the conditions relating to the occupier and the conditions relating to the person's resources.

Conditions relating to the occupant

The exemption concerns the following persons:

• holders of the ASI (Supplementary Invalidity Allowance) without any means test;
• holders of the Aspa (Solidarity Allowance for the Elderly, formerly Minimum Old Age) without any means test;
• means-tested persons over 75 (they can also benefit from the property tax exemption for their second home);
• means-tested AAH (Disabled Adult Allowance) holders.

Conditions of resources

The means test depends on the previous year's reference tax income, which must be below certain ceilings. It should be noted that, if these ceilings are exceeded, the owners concerned still retain the benefit of the exemption for two years.

The income ceiling depends on the family quotient. For 2023 it shall be equal to:

• €11,885 for the first part;
• plus 3 €174 for each additional half-share.

Rebate for persons over 65

If you are over 65 years of age and under 75 years of age on 1^er January of the tax year, and you meet the resource requirements for the exemption, you can receive a property tax rebate of €100. The tax credit is automatically applied by the tax authorities.

The cap on property tax based on income

If you are not eligible for an exemption, there may be a limit on the amount of property tax you pay on your principal residence.

The cap is to remove the property tax portion that exceeds 50% of your household income.

You can benefit from a cap on the amount of your property tax on the principal residence if you are below a certain income.

This provision applies under certain conditions:

• you are not subject to wealth tax;
• your benchmark tax income must not exceed €27,947 for the first share of family quotient (plus €6,530 for the first additional half and more €5,140 for the other half-shares).

The capping request can be made with this form available on the tax website.

What happens if there is a vacancy?

An individual may be exempt from property tax if a dwelling normally used for rental is vacant, or if a building used by the individual for commercial or industrial purposes is not used, under the following conditions:

• the vacancy or non-exploitation must be involuntary on the part of the owner;
• the vacancy or non-exploitation must last at least 3 months;
• the vacancy or non-operation must affect either the whole of the building or a part which can be rented or operated separately.

The case of new housing

Dwellings purchased new or in VEFA (sale in the future state of completion) are in principle exempt from property tax for two years following completion of the works.

New buildings for use as principal residences may be exempt from property tax for 15 years (from the date of completion) if:

• they were built with a loan under the low-cost housing scheme;
• more than 50 % of the housing was financed by State-aided loans (except for housing financed with the zero-interest loan).