Until recently, a family partnership in West Flanders could often count on an exemption from the provincial business tax. The reasoning was that a partnership that manages only family assets does not engage in ‘genuine’ economic activity.
That logic will no longer apply starting with the 2026 tax year. The Provincial Council has approved new tax regulations that will affect family partnerships.
What will change?
Through the 2025 tax year, family partnerships were able, under certain conditions, to exemption receiving provincial business taxes. In this regard, consideration was given to the passive or non-economic nature of the partnership.
The Provincial Council of West Flanders has eliminated that exception. Starting with the 2026 tax year, a single criterion will apply: does the entity have, as of January 1 of the tax year, a company number and a branch in the province? Then she is liable for taxes. The nature of the activity no longer matters.
What are the implications for family partnerships?
This change has a significant impact on family partnerships with a business registration number:
- Family partnerships are now subject to the provincial business tax;
- Any previously granted exemptions or waivers are automatically revoked;
- There is no need to initiate a separate procedure or file an objection.
What should you do?
The province will soon send each affected partnership a ‘tax return proposal‘. If your partnership has not moved as of January 1, 2026, and nothing has changed, then you do not need to take any action regarding this document: it serves solely as the basis for preparing the tax assessment notice.”.
If the pre-printed information is no longer correct—for example, due to a move or some other change—this could lead to no later than September 30, 2026 be corrected via the the province's online service portal.
How much is the tax?
The rate is calculated per location, based on the taxable area. For tax year 2026 The following applies:
|
Taxable area |
Rate |
|---|---|
|
Up to and including 1,000 m² |
€132.00 flat rate |
|
1,001 m² – 10,000 m² |
€0.20 per m² |
|
10,001 m² – 500,000 m² |
€0.17 per m² |
|
Over 500,000 m² |
Not taxable |
For most family partnerships (those without a physical business location or with only a registered office), in practice the a flat fee of €132.00 per location apply.
What does this mean to you?
A partnership that was previously exempt can therefore still become a tax assessment notice received. It is therefore important to carefully review the tax return proposal check and, if necessary, in a timely manner adjustments submit it through the online portal.
Do you have any questions about your situation?
Please feel free to contact our pro experts. We’d be happy to work with you to determine which obligations apply to your partnership.