Changes to the Flemish registration duties further explained

Ann Westen   |  

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Ann Westen

Ann is part of the Tax & Legal team and specializes in, among other things, succession.

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In a previous post, we discussed several key changes to the Flemish registration duties that will become effective as of 2022. In this post, we shed further light on the registration duties. When the announcement was made, there was still some uncertainty as to the entry into force of these changes.

Below, we briefly summarize what it is exactly about.

  • A rate reduction from 6% to 3% for the purchase of an unique owner-occupied house.
  • A rate reduction from 5% to 1% for major energy-related renovations.
  • The system of portability will end on the 31st of December 2023.
  • The standard registration duties rate will increases from 10% to 12%.

Entry into force explained

The Flemish government has now determined that the date of the authentic deed of purchase will the decisive date for those who buy their unique owner-occupied house and can therefore benefit from the reduced rate.

However, for those who cannot benefit from this favourable regime, the opposite rule applies. In that case, the date of the sales agreement (the compromise) will be decisive. Therefore, a person who signed the compromise for the purchase of a second or subsequent residence before the 1st of January, but for which the deed will not be signed until next year, will still be able to benefit from the 10% rate.

Additional changes

At the same time, the Flemish government has seized the opportunity to announce some additional changes.

In case you already own a house, you may still benefit from the reduced rate for the purchase of a unique owner-occupied house if you commit yourself to selling the “old” house. The period during which you must sell that house is now extended from 1 to 2 years.

Furthermore, the thresholds for the additional reduction of registration duties for the purchase of a modest family home are raised by 20,000 EUR.

Discuss your situation with our experts

Do you have any specific questions about these new changes? Do not hesitate to contact us. Our team of experts will be happy to help you.