A real estate project involves more than just land, bricks, and financing. The chosen structure, tax rules, and strict deadlines also determine the outcome. In this article, we share ten tips to help builders, investors, and developers avoid costly mistakes and missed opportunities.
This article was prepared based on the regulations in effect at the time of publication. Various Flemish and federal budgetary measures currently under discussion or announced may have an impact on the taxation of real estate transactions in the future.
Some rules and rates may therefore still be subject to change or further clarification. Always seek advice based on the most up-to-date regulations and your specific situation.
1 Your vision for the future determines whether to purchase privately or through a company
Whether you purchase real estate as an individual or through your company depends on the intended use, the length of time you plan to hold the property, whether you plan to rent it out, use it yourself, include it in an estate, tax considerations, and more.
What you purchase today purely as an investment in the company can sometimes be transferred to your personal assets later in a tax-efficient manner (provided the structure is correct). Each scenario has a different tax impact.
2 Please note: Unrestricted ownership in the case of 6%—VAT on demolition and reconstruction
Anyone who wants to take advantage of the reduced VAT rate of 6% on demolition and reconstruction, must be strict ownership requirements meet the requirements.
Anyone who still holds bare ownership elsewhere (for example, because the parents retained the usufruct as part of family planning arrangements and the child holds bare ownership) may consequently lose their right to that preferential rate. The VAT authorities interpret these conditions more strictly than they do for registration fees. Check this before you buy or build.
3 Think carefully before you temporarily rent out a property that's for sale
If it takes a while to sell a property, it seems logical to rent it out, partly to minimize the vacancy period. This can have significant tax implications.
The VAT administration may consider it a change of zoning, which means that the reduced VAT rate of 6% can no longer be applied to the final sale. The intention to sell is not sufficient if the actual use does not correspond to that intention.
4 Request a reduction in property tax for an unused building
When a property is completely unproductive for a period of time (vacant, not rented out, not in use), many owners are unaware that they are objection or request for a reduction can file a claim against the property tax. In cases of long-term unproductivity, this can result in real savings.
5 Learn about the new rules regarding the reduced rate of 2% registration fees
Since January 1, 2026 In Flanders, stricter conditions apply to qualify for the reduced rate of 2% when purchasing a single primary residence.
For example, after registration, every buyer must actually reside at the address for at least one year without interruption, and a split purchase (usufruct and bare ownership) is now prohibited. A joint purchase by both a natural person and a corporation is no longer eligible. Have your situation analyzed in a timely manner.
In its September Statement, the Flemish government announced that this rate would once again be set at 3% would increase. That increase is not yet legally in effect: the specific effective date and any transitional rules have yet to be established. VLABEL did confirm, however, that anyone who signs a preliminary sales agreement by December 31, 2026, will retain the right to the reduced rate of 2%, even if the notarized deed is not signed until 2027.
6 Ensure that the right of superficies is properly established
A right of superficies allows you to own buildings on someone else’s land without having to purchase the land itself, which can be advantageous from a tax and financial perspective.
Unfortunately, we regularly see this go wrong, with the contractually agreed compensation never actually being paid in practice. The tax authorities may impose consequences for this classic pitfall. Make sure that the right of superficies is properly established and that the agreed compensation is also is actually paid.
7 Please observe the deadline for filing an objection to the assessed value
For anyone who is building or undertaking major renovations, the tax authorities assign a cadastral income (KI). That KI serves as the basis for your property tax. All too often, we see owners who receive the KI notice simply set it aside without giving it a second thought.
You have a strict objection period to challenge the assigned KI. Once that deadline has passed, it is very difficult to have the KI reviewed later, even if it turns out that the KI was overestimated. Have your accountant or advisor review the assigned KI in a timely manner to determine whether it was estimated correctly.
8 Consult your accountant right from the design phase
A real estate developer or investor has a clear picture of everything: who will buy, what the structure will be, how the financing will work, and so on. He or she lets us know once the deed has been signed, but by then it’s often too late to make certain optimizations.
You make the most far-reaching tax and legal decisions in the design phase, not at the time of delivery. Those who involve their accountant early on can avoid VAT complications, legal obstacles, and unnecessary tax costs.
9 Think about the inheritance of real estate as early as the time of purchase
In most estates, real estate constitutes a significant portion of the estate, and inheritance tax can be quite high. We don’t see enough people thinking about the future transfer of the property at the time of purchase.
Choosing the structure at the time of purchase – Who buys, how, and in what proportions? – determines not only the tax due at that time, but also the amount of registration fees or inheritance tax that will be due later upon a transfer.
Seek advice from your accountant early on, because making adjustments later is less efficient and sometimes even impossible.
10 6% VAT is also an option as an investment in the event of demolition and reconstruction
For a long time, the reduced VAT rate of 6% for demolition and reconstruction was reserved only for those who lived in the home themselves. This caused a great deal of frustration among investors for some time.
The regulations have since changed. Anyone who buys a home or has one built after demolition can now, under certain conditions, also as an investor be eligible for that rate, even through a corporation. Whether your project and situation qualify depends on a few specific factors. Here, too, be sure to seek advice about your options in a timely manner.