According to the September Statement, we can soon expect to see a change in the rates of registration tax on the purchase of real estate in Flanders. The standard rate of 10% would be increased to 12% and the reduced rate of 6% for the purchase of the only own residence would be reduced to 3%. Here is a first overview of the information that the government has already announced and some important tips about the timing of your deed.
When purchasing the only home of your own (house or apartment) in order to effectively establish your residence there, you can - subject to conditions - enjoy a reduced rate of 6% compared to the "normal" rate of 10%. Note that it must be a residence, so a piece of building land is not eligible for this reduced rate. One of the conditions is that you are not the full owner of another residence or building land (in or outside Belgium).
An additional advantage can be enjoyed if the price of this property (note: not the portion of the price that may be paid for movable property such as furniture) is a maximum of EUR 200,000.00 or, in the central cities and the Flemish outskirts of Brussels, EUR 220,000.00. If this is the case, you will receive a "discount" in the amount of EUR 5,600.00 on the invoice from the tax authorities.
Those who opt for a thorough energy renovation (albeit under strict conditions), pay 5% registration tax. An additional discount of EUR 4,800.00 is also possible.
If you sell your starter home after some time and buy a new family home instead, then today you can often also enjoy the so-called "portability" of registration taxes. Taxes that were paid on the first purchase can be used again - as a means of payment, as it were - when paying the taxes on the second purchase, allowing you to enjoy a discount of up to 13,000 euros.
What will change about that?
The reduced rate would be adjusted from 6% to 3% registration tax. From a political angle, it is indicated that this will make the purchase of a starter home more feasible for young people. After all, the bank does not provide a loan for the registration tax to be paid, so you have to be able to put this amount on the table as your own contribution.
As a result of this reduction, the aforementioned discount is also halved from EUR 5,600.00 to EUR 2,800.00.
Those who opt for a major energy renovation will now pay only 1% instead of 5% registration tax (with any discount, also reduced to 960.00 euros).
However, the system of portability will be abolished. Therefore, in the case of a second purchase, it will no longer be possible to make offsets between successive purchases of a family home.