The authorities are using information from real estate websites to check whether the real estate yield of homes, used for tax purposes, is still in line with reality. If an advert states that a property has a bathroom and this has not been declared to the land registry, the tax authorities can change the premises’ real estate yield. This may lead to an increase in the annual property tax due on the property.
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Taxman scanning property websites to check renovations have been declared
Colin Clapson
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The tax authorities are using information and photos from real estate websites and other online platforms to check whether the KI, the real estate yield of homes, is still up-to-date. Francis Adyns of the finance department says real estate websites are not systematically checked, but it does happen.
"It starts when people report home improvements. If that declaration is incorrect, all avenues of proof are good," Mr Adyns explains.
"We carry out checks on a random basis, or when we suspect irregularities. The way we check can vary: from website visits to digital checks through internal and external information sources."
If on real estate sites a property turns out to be different to what was declared to the authorities, then the KI is not immediately adjusted. The premises are visited first.
Mr Adyns: "That's because pictures on websites do not reveal the entire story."
A revaluation can cost homeowners hundreds of euros extra per year.
Property tax is calculated on the basis of the KI, the so-called notional rent of a property or the real estate yield. 80 to 85 per cent of the property tax paid goes to the municipalities. For municipalities, this property tax is an important source of revenue.