Buying and selling with registration duty

• What if the price stated in the instrument is lower than the estimated sale value?

  If we consider that the mentioned price (or the declared value) is lower than the sale value, we will inform you of our estimate.

  Do you want more explanation or do you disagree with the estimate?

  You can let us know at that stage. If we cannot come to an agreement, we can demand an expert examination within two years from the registration of the instrument. The designation of one or three experts is done by mutual agreement (or by the justice of the peace if we cannot come to an agreement).

  Are you found to be in the wrong by the experts upon the control estimate?

  You will then pay the additional registration duty and a default interest of 7 per cent.

  If the difference between the sale value and the price stated (or the value declared) is equal to or more than 1/8th of the price stated or the value declared, you will have to pay a fine and the costs of the proceedings will be charged to you.

  You can only dispute the sale value determined by the expert by bringing a claim before court.

  What if the price does not correspond to the price actually paid?

  If part of the price was paid ‘under the table’, both the buyer and the seller will incur a fine which, in principle, is equal to the evaded duty. Moreover, criminal sanctions can also be pronounced.

• Who has to submit the instrument of sale for registration and who pays the registration duty?

  A sale contract must be submitted for registration within the prescribed period. We can register the instrument only upon payment of the registration duty.

  Sale contract by civil-law notary

  When the sale contract is drawn up by the civil-law notary, it is the civil-law notary who will submit the instrument for registration and transfer the registration duty.

  The civil-law notary will ask the buyer and/or seller to advance the payable registration duty. In practice, unless otherwise agreed, it is usually the buyer who pays the registration duty.

  Purchase by private instrument

  If the purchase is recorded by private purchase instrument (compromise), the obligation to register and pay duty rests on both the buyer and the seller.

  You have a period of four months to register that private instrument.

  It is important to respect that period. Failure to do so will result in a fine. The fine will be indivisibly payable by the parties. This means we can appeal to both the buyer and the seller for payment of the entire sum.

  If the private instrument is followed by an authentic instrument, you do not need to have the private instrument registered provided the authentic instrument (usually a notarial deed) is drawn up within four months from the date the private instrument was signed. If the authentic instrument is executed before a civil-law notary, the civil-law notary still has fifteen days to register it.

Tax reductions in the Brussels-Capital Region

• Buying a house in the Brussels-Capital Region

  In the Brussels-Capital Region, you are entitled, under certain conditions, to a tax-free allowance for the purchase in full ownership of a house that will serve as your main residence. The tax-free allowance is part of the tax base on which you do not have to pay registration duty.

  The tax-free allowance amounts to 200,000 euros. You will then pay no registration duty on a bracket up to 200,000 euros of your purchase. That is a tax advantage of up to 25,000 euros (200,000 x 12.5 per cent).

  The tax-free allowance applies to houses up to 600,000 euros but is also applicable to purchases of off-plan houses or purchases of houses under construction.

  Conditions for the tax-free allowance

  The tax-free allowance for the purchase of a house has the following conditions:

  • The house must be located in the Brussels-Capital Region.
  • You must be a natural person. This means that companies, associations or other legal entities are not eligible.
  • It must be a pure purchase. Exchange, for example, is excluded.
  • You must purchase the house in its entirety in full ownership (this may be done by several persons together). Therefore, purchases of a part, the usufruct or the bare ownership of the property are excluded.
  • On the date of the acquisition agreement, you may not be the full owner, in its entirety, of another immovable property intended, in whole or in part, for residential use. In case of acquisition by several persons together, this condition applies to each of them separately.
    Exception: If you do not meet this condition at the time of acquisition, you can apply for the tax-free allowance afterwards, through a refund. To this end, you must have disposed of all other immovable property within two years from the date of registration of the deed of acquisition of the second house.
  • You must establish your main residence in that house within three years (i.e. be registered there in the population register or the register of foreign nationals):
  • You must maintain your main residence in that house for a continuous period of at least five years from the time you established your main residence in that house.
  • The amount on which we levy the registration fee may not exceed 600,000 euros.

• Buying a building lot in the Brussels-Capital Region

  In the Brussels-Capital Region, you are entitled under certain conditions, to a tax-free allowance for the purchase of a building lot. The tax-free allowance is part of the tax base on which you do not have to pay registration duty.

  The tax-free allowance amounts to 100,000 euros. You will then pay no registration duty on a bracket up to 100,000 euros of your purchase. That is a tax advantage of up to 12,500 euros (100,000 x 12.5 per cent).

  The tax-free allowance applies to building lots up to 300,000 euros.

  Conditions for the tax-free allowance

  You must establish your main residence at the building lot address within three years.

  The tax-free allowance for the purchase of a building lot has the same conditions as the tax-free allowance for a house, with one difference: the amount on which you pay registration duty cannot exceed 300,000 euros.

• Energy-efficient refurbishment in the Brussels-Capital Region

  In the Brussels-Capital Region, under certain conditions, you are entitled to an additional tax-free allowance for energy-efficient refurbishment. The tax-free allowance is only possible if the main tax-free allowance for the purchase of a house is applied. The additional tax-free allowance is an extra tax incentive to improve the energy performance of your house.

  The tax-free allowance amounts to 25,000 euros per energy class improvement (EPIC (energy performance and indoor climate) or EPB), provided you improve the energy class of the house by at least two classes within a period of five years from the registration date of the sale contract or from the latest date of submission for registration. That is a tax advantage of 6,250 euros for a two-class improvement and 3,125 euros for each additional EPIC energy class improvement.

  If, at the end of the five-year period, the EPIC class improvement is less than your commitment, the difference will be recovered between:

  • the amount of the tax-free allowance granted at the time of registration of the instrument, and
  • the amount that should have been granted according to the actual EPIC class improvement

  That amount is no more than 6,250 euros if the two-class increase has not been achieved, and/or no more than 3,125 euros for each additional EPIC class increase included in the commitment and not achieved.

  In addition, except in cases of force majeure, you will have to pay a fine equal to 1/10th of this additional duty (625 euros or 312.5 euros).

  Conditions for the tax-free allowance

  The tax-free allowance for energy-efficient refurbishment is an additional tax-free allowance for the purchase of a house. In other words, it is only possible if the main tax-free allowance for your house is also applied. You must therefore meet the conditions of the main tax-free allowance for this additional tax-free allowance, with one difference and one additional condition:

  • An EPIC class improvement may take time (obtaining an environmental permit, cost estimates, carrying out the works). That is why the period in which you must be settled in the house is five years instead of three years.
  • There is also an additional condition: you must improve the energy class of the house by at least two classes within a period of five years, counting from the date of the registration of the instrument of sale or from the deadline for submitting the instrument for registration.

• Mandatory entries in the instrument

  There are some form requirements in order to qualify for the tax-free allowance in the Brussels-Capital Region. Your adviser can assist you in this regard (e.g. your civil-law notary).

  In the instrument (or in a signed document attached to the instrument), you must state that:

  • you are not already the owner of a house which results in the exclusion of the tax-free allowance;
  • you undertake to establish your main residence in the property purchased:
    • within three years if it is an existing house, a building lot, an off-plan house or flat, or a house or flat under construction;
    • within five years if it is also the additional tax-free allowance for energy-efficient refurbishment;
    • you undertake to maintain your main residence in the purchased immovable property for a continuous period of five years calculated as from the date of establishment of the main residence in the purchased immovable property.

  The following also applies to the additional tax-free allowance in case of an energy-efficient refurbishment:

  • You must provide details of the energy performance of the purchased property according to the most recent, valid EPIC certificate on the date of the acquisition agreement (the number of the EPIC certificate, the issue date and the energy class mentioned in the certificate). You must also attach the EPIC certificate to the instrument.
  • You must undertake to carry out the energy class improvement, specifying the intended improvement (minimum two classes).

Tax reductions in the Walloon Region

• Buying a house or building lot in the Walloon Region

  In the Walloon Region, you are entitled, under certain conditions, to a tax-free allowance for the purchase in full ownership of a house that will serve as your main residence. The tax-free allowance is part of the tax base on which you do not have to pay registration duty.

  The tax-free allowance amounts to 40,000 euros. You will then pay no registration duty on a bracket up to 40,000 euros of your purchase. That means a tax advantage of up to 5,000 euros for an immovable property subject to the normal registration duty of 12.5 per cent (40,000 x 12.5 per cent).

  If the reduced registration duty of 6 per cent (modest home) or 5 per cent (social mortgage loan) applies to you, the tax advantage may be less, depending on the tax base.

  The tax-free allowance is also applicable to purchases of:

  • off-plan houses or houses under construction
  • building lots

  The amount of the tax-free allowance depends on the purchase value of the immovable property.

  House

  Tax base	Tax-free allowance
  < 350,000 euros	40,000 euros
  Between 350,000 euros and 500,000 euros	40,000 euros – (20,000 x (taxable base – 350,000) / (500,000 – 350,000))
  > 500,000 euros	20,000 euros

  Off-plan house or house under construction or building lot

  Tax base	Tax-free allowance
  < 175,000 euros	40,000 euros
  Between 175,000 euros and 250,000 euros	40,000 euros – (20,000 x (taxable base – 175,000) / (250,000 – 175,000))
  > 250,000 euros	20,000 euros

  Conditions for the tax-free allowance

  • The immovable property must be located in the Walloon region.
  • You must be a natural person. This means that companies, associations or other legal entities are not eligible.
  • The immovable property must be used or intended for residential purposes (i.e. a house or flat, including houses purchased off-plan or under construction, and building lots).
  • You must purchase the immovable property in its entirety in full ownership (this may be done by several people together). Therefore, purchases of a part, the usufruct or the bare ownership of the property are excluded.
  • On the date of the acquisition agreement, you may not be the full owner, in its entirety, of another immovable property intended, in whole or in part, for residential use. In case of acquisition by several persons together, this condition applies to each of them separately.
  • You must establish your main residence in that immovable property (i.e. be registered there in the population register or the register of foreign nationals):
    • within three years if it is an existing house
    • within five years if it is a building lot, or an off-plan house or flat, or a house or flat under construction
  • You must maintain your main residence in the immovable property for a continuous period of at least three years from the time you established your main residence in that immovable property.

  Formalities

  There are some form requirements in order to qualify for the tax-free allowance. Your adviser can assist you in this regard (e.g. your civil-law notary).

  You must apply for the tax-free allowance in the instrument (or in a signed document attached to the instrument) and state that:

  • you are not already the owner of a house which results in the exclusion of the tax-free allowance
  • you undertake to establish your main residence in the property purchased:
    • within three years if it is an existing house
    • within five years if it is a building lot, an off-plan house or flat, or a house or flat under construction
  • you undertake to maintain your main residence in the purchased immovable property for a continuous period of three years from the date you established your main residence in that immovable property.

• Buying social housing in the Walloon Region

  If you buy social housing (house or flat) in the Walloon Region from a legal entity governed by public law, the registration duty is reduced to 0 per cent. In practice, this means that you pay the general fixed duty of 50 euros.

  Conditions

  • You must be a natural person eligible for the purchase premium as referred to in the Walloon Housing Code.
    Please note, in case of any withdrawal of the premium, you will be obliged to pay the difference between the fixed general duty levied and the standard registration duty of 12.5 per cent.
  • It must involve the purchase of a social housing property (house or flat) from a body governed by public law (social housing company, intermunicipal cooperative society, municipality, public centre for social welfare ...).

• Buying a modest house in the Walloon Region

  If you purchase a modest house in the Walloon Region, under certain conditions you enjoy a reduced registration duty of 6 per cent on part of the purchase price.

  If for the purchase you have a credit with certain credit institutions with social purpose, the duty is reduced to 5 per cent and the registration of the mortgage deed in the form of 'Eco-Prêts' (Eco Loans) is exempted from the 1 per cent duty.

  Part of the purchase price

  The reduced registration duty of 6 or 5 per cent is limited to a certain amount according to whether the modest house is located in or outside an area with real estate pressure. This amount is indexed annually.

  On the part of the purchase exceeding the maximum amount, you will pay the normal registration duty (in principle 12.5 per cent).

  Location	Indexed amounts on 1 January 2021	Indexed amounts on 1 January 2022
  Immovable property acquired in an area with real estate pressure	175,039.47 euros	177,884.34 euros
  Immovable property acquired outside an area with real estate pressure	164,099.49 euros	166,766.56 euros
  Immovable property developed in an area with real estate pressure	241,439.84 euros	245,363.90 euros
  Immovable property developed outside an area with real estate pressure	230,575.06 euros	234,322.54 euros

  These are the municipalities that are listed in an area with real estate pressure for the period from 01.01.2022 to 31.12.2022 (updated on 1 January 2022): Arlon, Attert, Aubel, Beauvechain, Braine-l'Alleud, Braine-le-Château, Chastre, Chaumont-Gistoux, Court-Saint-Etienne, Genappe, Grez-Doiceau, Incourt, Ittre, Jalhay, Jodoigne, La Bruyère, La Hulpe, Lasne, Messancy, Mont-Saint-Guibert, Neupré, Nivelles, Ottignies-Louvain-la-Neuve, Perwez, Rixensart, Silly, Verlaine, Villers-la-Ville, Walhain, Waterloo, Wavre.

  Conditions

  • It must involve the purchase of full ownership or bare ownership of a property.
  • The non-indexed cadastral income of the purchased property may not exceed a certain amount, depending on the number of dependent children:

    Dependent children	Maximum cadastral income
    0 to 2	745.00 euros
    3 or 4	845.00 euros
    5 or 6	945.00 euros
    7 and more	1,045.00 euros

  • The total cadastral income of the property acquired and of the property already owned in full or bare ownership by you or your spouse or legal cohabitant at that time, may not exceed the aforementioned maximum amounts. For the calculation of the total cadastral income, immovable property owned only in bare ownership by you or your spouse or legal cohabitant and acquired from the estate of the respective ascendants, is not taken into account.
  • You or your spouse or legal cohabitant may not own an undivided part, even minimal, in another immovable property intended for residential purposes.
  • In certain cases, immovable property that cannot be occupied due to legal or contractual obstacles is not taken into account. It must be an actual obstacle attributable to the building itself (for example: a decree of uninhabitability issued by the mayor).
  • Immovable property you sell within the year following the deed of acquisition - insofar as you have the intention to sell mentioned in the instrument - or in the year in which the immovable property is occupied for the first time - if it is built on land eligible for the reduced registration duty - is also not taken into account.
  • You or your spouse or legal cohabitant must register in the population register or in the register of foreign nationals at the address of the property purchased. This registration must be done within a period of three years from the date of the authentic sale contract and must be maintained without interruption for at least three years.

  Formalities

  There are some form requirements in order to qualify for the reduced registration duty. Your adviser can assist you in this regard (e.g. your civil-law notary).

  In the instrument or in a statement certified true and signed at the bottom of the instrument, you must:

  • include the legal notices
  • state that the conditions to enjoy the reduced registration duty have been met (maximum cadastral income and immovable property)
  • state that the obligations to maintain the reduced registration duty will be fulfilled.

• Buying a building lot for the construction of a modest house in the Walloon Region

  When you buy a building lot that will serve as the construction site of a modest house, you benefit, under certain conditions, from the reduced registration duty of 6 or 5 per cent.

  The conditions and formalities are the same as those for the purchase of a modest house.

  Please note that the reduced registration duty will not be applied immediately. The sale contract of the building lot is registered at the standard registration duty (12.5 per cent). The amount paid in excess of the reduced registration duty will be refunded if, subsequently,

  • the cadastral income of the house built does not exceed a certain ceiling (in principle, 745 euros)
  • the other conditions for immovable property have been met.

  In order to receive the refund, you will need to submit a cadastral extract. You can submit an application once the cadastral income of the house is determined.