Brussels puts too much tax on office space, says Voka

The City of Brussels is making it too difficult for businesses to rent properties in the capital, Flanders employers’ network Voka has warned.

Accusing Brussels of using entrepreneurs as “cash cows”, the Flanders chamber of commerce and industry insisted: “The vicious circle of higher taxes and associated business departure must be stopped.”

In June, Brussels introduced a tax of €24 per square metre on office space, applied retroactively from 1 January 2025. In 2024, the office tax was €17.85 per square metre. From now on, the tax will apply to offices of 125m² and above, instead of 100m².

Voka, which describes itself as “the most influential network of entrepreneurs in Flanders”, with its 18,000 members representing 65% of private employment in Flanders, points out that the tax has gone up by 150% in five years.

Other Brussels municipalities have also increased the tax. According to the employers' organisation, in Brussels-City, the total real estate bill for an average company will be €35,000 higher this year than in 2024.

"Business premises in the Brussels region could be slightly more expensive than in the outskirts. After all, Brussels has a number of strong assets that justify a higher bill," Voka added.

"But if the rate is three to four times more expensive than in the periphery, the tax handicap becomes too great. This handicap leads to companies leaving Brussels or savings on new recruitments at firms that remain in Brussels.”

Brussels alderman for finance and public cleaning Anas Ben Abdelmoumen (Socialist) explained that “we had to make difficult choices during the budget talks so we could continue to guarantee essential public services, such as the police and schools”.

But he maintained that small businesses are spared from the tax burden as much as possible.

"During their first year, they will no longer have to pay office taxes at all," he said. "And we have also increased the office area that is exempt from the office tax from 100 to 125m²."

Finally, he noted the benefits of being in the capital which can justify its extra expense tax-wise: “We have good accessibility, the European institutions, but also beautiful squares and parks and a vibrant socio-cultural life.

"The employees of the large companies that are here also enjoy this. It is normal for those companies to contribute to the costs of our investments."