On Sept. 30, 2024, the new Flemish government led by Minister-President Matthias Diependaele took the oath of office in the Flemish Parliament. With the publication of the new coalition agreement, titled "Working together for a warm and prosperous Flanders," the government set its course for the next five years. This Flemish coalition agreement contains a number of important tax changes that are of great importance to Flemish entrepreneurs.
Here are the most relevant points for you in a row:
1. Reduction in registration fees for owner-occupied housing
Good news for those buying their own homes: the registration fee on the purchase of a sole and owner-occupied home will drop from 3% to 2%. This new rate will be effective for homes whose authentic deeds are recorded after Jan. 1, 2025. This will make it more attractive for individuals to purchase their first home, which may also boost the real estate sector.
2. Increase in registration fee for professional sellers
Things are also changing for real estate professionals: the registration fee on purchases made by professional sellers is increasing from 4% to 6%. This increased fee does not yet have a specific effective date, but it will increase costs for real estate professionals.
3. Inheritance tax reform
The inheritance tax is being reformed with the goal of easing the tax burden on children, surviving spouses and even further family members such as siblings. The focus is on small and medium-sized inheritances, with certain complex exceptions being removed. Measures are also being taken to combat fraud, such as improved exchange of information.
4. Suspicious period unrecorded donations extended
An interesting change for those working with donations: the suspect period for unregistered donations (such as hand and bank donations) will be extended from three to five years. This means that if the donor dies within five years of the gift, inheritance tax is still due on the gifted value. Previously, this period was three years.
5. Traffic tax reform for electric vehicles
Exemptions from road tax and vehicle occupancy tax for electric vehicles will disappear for new registrations. However, those who have already registered a zero-emission vehicle will retain the current exemption. For leased vehicles, which are subject to Brussels regulations, the Flemish Government is seeking coordination with the other regions.
6. Service checks getting more expensive
There is also an important change for those who use service checks. The price per check will increase from 9 euros to 10 euros, and the 20% tax rebate will be eliminated. Users will therefore pay the full 10 euros per check, which will mainly affect individuals who regularly hire services such as household help.
What does this mean for entrepreneurs?
In the coming period it will be interesting to see how these measures are put into practice. There are direct consequences for entrepreneurs in real estate, tax planning and green mobility, from higher registration fees to adjustments in traffic taxation. The extension of the suspect period in gifts requires a review of gift strategies, while the inheritance tax reform makes it more attractive to transfer wealth to the next generation.
Stay informed of developments and plan ahead to take full advantage of the opportunities presented by these tax reforms. We will, of course, update you as soon as the measures are finalized.
