On December 30, 2024, the program decree accompanying the 2025 budget was finally approved. This decree contains a series of measures that enable the Flemish budget for the coming year and brings some notable fiscal changes. Below we list the most important changes so you know what has changed since Jan. 1, 2025.
1. Inheritance tax: longer suspect period in gifts
The so-called suspect period on gifts is extended from three to five years. This means that if a hand or bank gift was not officially registered and the donor dies within five years, inheritance tax is still due on the donated value. This extends tax uncertainty for donors and beneficiaries and makes registration of gifts all the more important.
2. Changes in sales law
A number of changes to sales rights (formerly registration fees) are effective Jan. 1, 2025:
- Decrease in sole proprietary home rate
The right to sell when purchasing a sole owner-occupied home drops from 3% to 2%. This lower rate applies to both private sale agreements and authentic deeds executed from Jan. 1, 2025. - Increase for professional sellers
For professional real estate players, the sales right of 4% to 6%. - Elimination of reduced rates
The reduced sales and gift tax rates for energetically renovated buildings and real estate heritage will be removed. This means that energetic renovations and heritage investments can no longer count on a favorable tax regime. - Duty reduction for modest dwellings
For buyers of a sole owner-occupied home with a taxable basis of maximum of 220,000 euros applies a rights reduction from 1,867 euros On the total right to sell.
3. Property tax: end of reduction for energy-efficient homes
The tax rebate for energy-efficient new homes will be limited. Only those who submit an urban planning permit application by September 30, 2025 can still take advantage of this tax incentive.
Want to know what impact these changes will have on your estate plans or succession planning? Contact your Titeca pro expert for personalized advice.