Constitutional Court annuls reduced taxable base for the Patrimony Tax

What changed with the law of 28 December 2023?

The main change of this law was the introduction, from 1 January 2024, of a progressive rate on the value of assets, replacing the old rate of 0.17%:

• €0 – €50,000 → 0%
• €50,000 – €250,000 → 0.15%
• €250,000 – €500,000 → 0.30%
• €500,000 → 0.45%

For associations and foundations active in, among others, care, education, culture, sport, medical centres, health associations and neighbourhood health centres, sheltered workshops, animal shelters and private archives, the legislator wanted to neutralise the impact of these progressive rates.

Therefore, 62.3% of their assets were exempted, so that their effective rate remained at 0.17% (maximum rate of 0.45% x 37.7% = 0.169%).

Judgment of the Constitutional Court

A number of associations and charities that could not benefit from this favourable measure brought the matter before the Constitutional Court.

The Court ruled that it is not reasonably justified that only certain sectors can benefit from this reduced taxable base.

Consequence: the favourable measure is annulled

Transitional period

To avoid retroactive tax increases, the annulled provision remains valid until 31 December 2026.
The associations and foundations concerned can therefore still benefit from the reduced taxable base:

• for the 2025 declaration (filed this year)
• and for the 2026 declaration (calculated on the basis of assets as at 1 January 2026)

From 2027, this favourable regime will lapse, unless the legislator introduces a new arrangement before 31/12/2026.

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This article was written by Fréderic Stynen.