We regularly get questions about the new form foreign KI. With this form, the Belgian tax authorities will determine the cadastral income (KI) of foreign property. Therefore, this contribution will explain in a few steps how to fill in this form.
Note: the non-declaration or non-timely declaration of your foreign property may attract penalties.
Who should fill in the foreign KI form?
Every owner or shareholder of a property located abroad should complete this form. And this for each property. It does not matter whether you are a full owner, joint owner or usufructuary. However, there is no declaration obligation for bare owners.
Read more about the calculation of foreign KI.
Box 1 and Box 2: general property data
At box 1 you can specify the type of property: house/villa, flat, commercial house, industrial building, land, etc.
With box 2 enter the address details of the property. However, in Spain or Portugal, the street address may differ from the official address. Or sometimes even no official address is available, which is common in Spain, for example. You can then enter the address freely in box 2b.
Box 3: Ownership situation
In box 3, state your title. You should use a fraction to report your share in full ownership. For example, 1/2, 1/3, etc. It is recommended that you look at the division in your title deed. Even if you are married in community of property, you should still each file a return for 1/2.
For example, for the part that has no right to use the property, report the share of bare ownership. If your bare ownership is valued at 20% of the full ownership, you can report 1/5.
Box 4: Sales value
In this box, you must enter the current sales value. This value is the price in EUR which you upon sale at time of declaration would normally be able to get. In other words, if you decide to sell your second residence today, the sale value is the price you would expect to receive under normal circumstances.
Importantly, you should declare the sale value as if you were full owner. You should not calculate the sale value based on your share of full ownership. If the sale value is €100,000.00, and you own for 50%, you still declare €100,000.00.
So if you have recently bought a second residence abroad, this box is easy to fill in. After all, you have a recent sales value on which to base yourself: the purchase price. However, if you bought in the past and do not know the current sales value, we move on to the next boxes.
How are you taxed on foreign KI? Learn more about Belgian taxes on Spanish property here.
Box 5: You have built
Here you should include the split between the original acquisition price of the land excluding costs and the cost price of the works carried out excluding taxes (e.g. VAT). You also state the date of acquisition and the date of completion.
If you did not build, move on to the next box.
Box 6: You have a second residence that you have not renovated
In this case, enter the acquisition price excluding costs and the date of acquisition. The acquisition price can be the purchase price at the time or the valuation in the estate or donation. The tax authorities will then recalculate the value to 1975.
Box 7: You have a second residence that you have renovated
If you have renovated/converted a second residence, you should again indicate the current sales value. As in box 5, this may be based on the sum of the acquisition price excluding costs on the one hand and the cost price of the works excluding taxes on the other.
Renovation/conversion works are defined as works that involve a significant change to the property and increase its value. According to the law: "work with an increase of the KI by an amount of EUR 50 or more or at least by an amount of 15 % of the existing KI".
Box 8: sales value or gross rental income in 1975
Since the last valuation in Belgium was in 1975, you can - if you have this information - give the 1975 sales value or gross rental income.
Box 9: material and equipment
This box targets commercial and industrial buildings that contain machinery, appliances and installations for the exercise of an activity. This subject is therefore not applicable to residential property.
In case you have such installations, you should indicate their investment value and date of commissioning.
Box 10: area of land
If you have specified an area of land in box 1, enter the area in square metres here.
Box 11 and box 12: your personal data
Finally, fill in your personal details.
Form foreign KI summarised
In short:
- You need to fill in one form per foreign property: if you have a share in two properties, fill in two forms.
- In each case, you indicate in a fraction what your share is in the full ownership, e.g. 1/2, 1/3.
- The current sales value is based on full ownership, even if you only own 1/3, for example.
- As a bare owner, you should not fill in this form.
You may also have to pay local taxes in the country where your property is located. Here is an overview for Spain, France and Portugal.
