When buying property, you are subject to the payment of registration duties which differ depending on the region in which your building is located.
The Flemish Government recently announced that changes would be made in 2022 for the various types of real-estate property. BuyerSide, your real-estate consultant, has looked into the modifications to real-estate taxation in Flanders, compared with the Walloon Region and the Brussels-Capital Region.
Family home: reduction in registration duties in Flanders
As of 1 January 2022, the rate of registration duties in Flanders will fall from 6% to 3% when buying a family home. To benefit from this rate, you will have to be resident in the apartment or house in question. In addition to this condition, you may not already own a plot of building land or another home when you buy the property.
If you already own your family home, you will have one year to sell it and thereby benefit from the 3% rate.
Land, second homes and investment properties: increase in registration duties in Flanders
The current rate when buying land, a second home or an investment property is 10%. This is set to increase to 12% in the Flemish Region as of 2022.
Change for energy renovation work
As regards the registration duties for a dilapidated building, the 5% rate is to be lowered to 1%. In fact, energy renovation is being strongly encouraged for this type of home. However, you will only be able to benefit from this rate if the renovation meets certain conditions.
Once the renovation work in your home is complete, it will have to guarantee minimum insulation, ventilation and energy efficiency standards.
Modest homes: what benefits are available in the Walloon Region, the Flemish Region and the Brussels-Capital Region?
A distinction should be made among the three regions when buying a distinct home.
In Flanders, when you buy a property for less than € 200,000 (€ 220,000 if it is located on the outskirts of Brussels or in certain Flemish cities), you will be able to benefit from an additional reduction in the registration duties. This reduction will amount to € 2,800. However, you will have to meet certain conditions to obtain this reduction.
In Wallonia, the current situation is to remain unchanged: if your property is located in the Walloon Region and has a maximum cadastral income of € 745, you will be able to benefit from reduced registration duties equivalent to 6% (5% with social credit). This reduction applies to the first tranche of € 174,000.41 if the home is located in a real-estate pressure zone, or to the first tranche of € 163,125.56 if it lies outside this zone. As in Flanders however, you have to meet certain conditions to be eligible for this.
As regards the Brussels-Capital Region, no reduced rate of registration duties exists. Nevertheless, you can benefit from a registration duties allowance on € 175,000 if the purchase price is below € 500,000. A number of conditions have to be met in order to be eligible for this allowance, such as the need to remain resident in the home for an uninterrupted period of five years.
Comparison of registration duties when buying a family home in Flanders, Wallonia and Brussels
PURCHASE PRICE: € 250,000
|Allowance||€ 175.000||€ 0||€ 20.000|
|Taxe base||€ 75.000||€ 250.000||€ 230.000|
|€ 9.375||€ 7.500||€ 28.750|
PURCHASE PRICE: € 550,000
|Allowance||€ 0||€ 0||€ 20.000|
|Tax base||€ 550.000||€ 550.000||€ 530.000|
|€ 68.750||€ 16.500||€ 66.250|
BuyerSide, your real-estate consultant at your side for your purchases in Belgium
The real-estate sector is teeming with regional specificities and analysing them all can sometimes be complicated. BuyerSide stands at your side to find the property that corresponds to your needs and your expectations, providing you with technical, legal and tax knowledge. Our aim? To assist you to make an advantageous and successful acquisition!
Are you looking for a property and would you like to know more about the real-estate tax system?