The new year has begun. This also means that the new rates of registration tax apply in the Flemish Region. For the purchase of the family home, as of January 1, 2022, you will pay only 3% registration tax as opposed to the original 6%. Buying a piece of building land, a second residence or other non-residential property in Flanders, on the other hand, will become a lot more expensive; here the registration tax will increase from 10% to 12%.
Below is an overview of the main changes.
Purchase family home henceforth to 3%, other property to 12%
Since January 1, 2022, when you purchase the only owner-occupied property (house or apartment) where you effectively establish your residence, you pay only 3% registration tax. To enjoy this reduced rate, there are a number of conditions to be met. Among other things, you must not yet be the full owner of another home or building plot in or outside Belgium and you must establish your domicile there within three years of the purchase of the home.
Good news for those who wish to purchase a new family home at 3% while their current family home remains unsold. The new family home can still be purchased at the reduced rate on condition that in the deed of purchase of the new family home you promise to sell your current family home within two years.
If you wish to purchase a piece of building land, a second residence or other non-residential property, you will now pay 12% registration tax on the purchase price. Purchase on plan is also covered by this. An exception is made for the purchase of agricultural land and certain types of natural areas and the rate of 10% continues to apply.
Professional buyers, on the other hand, need not fear, the reduced rate of 4% remains untouched by these changes.
Major energy renovation at 1%
Are you planning to do a major energy renovation to the home? Then - albeit under strict conditions - you may be eligible to pay only 1% registration tax. Last year this rate was still 5%. The conditions you need to meet can be consulted at Energiesparen.be from the Flemish government.
Additional discount for the purchase of a modest home
For the purchase of the only owner-occupied home that is considered 'modest', the government provides an additional discount of 2,800 euros. A "modest" house is one that is purchased for a price of no more than 220,000 euros. In the core cities and in the municipalities of the Flemish periphery around Brussels, the price may not exceed 240,000 euro. Note: the price paid for any moveable property, such as furniture, is not taken into account. If you buy a modest home and carry out a major energy renovation, the discount amounts to 960 euros.
What about portability?
Under certain conditions, as a buyer you can deduct the registration tax you paid when you bought a family home from the registration tax you will pay on your new family home. This principle is called the 'portability' and allows the buyer to recover a portion (up to a maximum of 13,000 euros) of the registration tax.
However, this principle of portability will be phased out gradually and will be definitively abolished on 1 January 2024. If, as a buyer of a family house, you are eligible for both the reduced rate of 3% (or 1%) and for portability, you will have the choice until 1 January 2024: either you choose the old rate of 6% (or 5%) combined with portability, or you choose the rate of 3% (or 1%) without the application of portability, whichever is most advantageous for you.
What if your compromise was signed in 2021?
If your compromise for the purchase of a family home was already signed in 2021, you can still enjoy the reduced rate of 3%. For purchase of a piece of building land, a second residence or any other non-residential property for which the compromise was signed in 2021 and the deed only in 2022, the purchase can be made under the old rate of 10%.
|Property type||When compromise signed?||When did you sign a notarial deed?||Applicable rate?|
|Plot of building land, second residence, other non-residential property||2021||2022||10%|
Do you have questions about these new rates? Then be sure to contact us!
Also read our other articles on the news page.