Tax on land use implementation plan benefits

The tax on land use implementation plan benefits may be imposed when the authorities have drawn up a land use implementation plan (LUIP) that changes the designated land use of your plot, for example from agricultural land to building land. This change of designated land use has increased the value of your plot. This is referred to as ‘land use implementation plan benefits’ (Dutch: planbaten). A tax is payable on this increase in value, viz. the tax on land use implementation plan benefits.

Not all changes of designated land use give rise to this tax. Moreover, different rates apply to each change of designated land use.

The tax is payable by anyone who has the right of full or bare ownership of the plots at the time when the relevant land use implementation plan comes into force.

Once a LUIP has come into force, the Flemish Tax Service (Dutch: Vlaamse Belastingdienst/Vlabel) will send a tax assessment notice to the plot owner.

In most cases, the tax does not have to be paid immediately. Payment is only due when the increase in value is realised (when a ‘triggering event’ occurs). As a triggering event may not occur for several years, you are not required to pay the tax immediately. However, it is in your interest to do so anyway: under certain conditions, you will then receive a 15% discount (‘bonification’).

If you wish to defer payment, the Flemish Tax Service will send you a payment notice stating a final payment date, as soon as a triggering event has occurred. In that case, you will no longer be entitled to the bonification and will have to pay the full amount.

You are therefore obliged to pay once a ‘triggering event’ has occurred, such as:

• the sale of the plot or a right in rem over it;
• the receipt of a building permit, a permit for a change of use or a subdivision permit, which you were unable to obtain prior to the LUIP.

This is a simplified description. Always consult the full, legally correct text.

The calculation is carried out separately for each plot in the cadastre.

The method of calculation changed significantly in 2024:

• A calculation is made based on flat-rate increases in value, for plots under a LUIP that was provisionally adopted before 15 April 2024.
• An authorised person estimates the increase in value, for plots under a LUIP that has been provisionally adopted after 15 April 2024. The increase in value is the difference in sales value before and after the change of designated land use.

The detailed calculation of the tax for your specific situation is enclosed with the tax assessment notice.

In certain cases, no tax on land use implementation plan benefits is payable because no increase in value is created by the change of designated land use, or because that increase is very small. An overview of the exemptions before and after 2024 can be found on the dutch website.

In a number of cases, payment of the tax on land use implementation plan benefits is deferred. Provided you meet certain conditions, the tax does not have to be paid, even if you have already received a tax assessment notice.

The following are possible grounds for deferral (often subject to very specific additional conditions):

• The plot is due to be expropriated.
• The Council of State suspends the LUIP that gives rise to the tax on land use implementation plan benefits.
• The plot cannot be developed for reasons specific to the plot itself. This may be, for example, due to its physical condition (e.g. waterlogged), or because of its shape, location or limited size.
• The plot cannot be developed due to a public utility easement.
• The plot forms part of a definitively concluded brownfield agreement, and additional conditions have been met.