Since January 1, 2017, the tax allowance in the Brussels-Capital Region is 175.000 €.
In other words, you will no longer have to pay registration fees on the first tranche of € 175,000 when purchasing your first property (which corresponds to a saving of € 21,875) under conditions of meet certain conditions.
First of all, what is the tax allowance?
When registering the act of acquisition of real estate, the buyer must pay a tax. This is called "registration fees", 12.5% of the purchase price.
A abatement is a reduction in the tax base of this tax. More roughly, it is a decrease in the amount of registration fees that are owed by the buyer during this transaction.
Due to the tax reform, a significant number of changes have been made to the abatement, here are the most important:
- The allowance has been increased from 60,000 € to 175,000 € throughout the territory of the Brussels-Capital Region. On the first € 175,000, the buyer of a property must not pay registration fees, the rate of which is set at 12.5%.
- The amount on which the registration fees are paid cannot exceed € 500,000. This amount is made up not only of the acquisition price of the immovable property but also of any charge which would be imposed on the purchaser (for example an occupancy allowance for the effective occupation of the property by the purchaser before it takes place the transfer of property, generally fixed on the day of the signing of the authentic act of sale before the notary). This means that in order to benefit from the abatement, the total amount of the acquisition of the property - prices and charges - cannot exceed € 500,000 .
(source : https://fiscalite.brussels)
Why allow the tax allowance?
In Belgium registration fees are set at 12.5%, these are among the highest in Europe. This tax regularly acts as a brake for the largest families, single people or young people at the start of their career who aspire to become owners in the capital. It is therefore to allow and encourage Brussels residents to become owners that the Brussels-Capital region to decide to apply the reduction on registration fees.
What are the conditions to be fulfilled in order to benefit from this reduction?
The abatement can be obtained for any building (a small studio, a loft or a mansion ...), but provided that all the buyers of the property meet the following conditions:
1 / Accommodation in Brussels
The accommodation to be acquired must be located in the 19 municipalities of the Brussels-Capital region.
2 / Price not exceeding € 500,000
The price (plus charges) or the market value of the property) cannot exceed € 500,000.
3 / “Natural persons” buyers
The purchasers must be natural persons. The reduction will therefore not play for companies, non-profit organizations, public establishments, etc.
4 / Real estate "allocated or intended in whole or in part for housing"
If the acquisition relates only to a building plot , the amount of the allowance will amount to half of the allowance for the purchase of a house / of an apartment and therefore at 87.500 € (175.000 € / 2). You will therefore no longer pay registration fees on the first € 87,500 of the purchase of your land, which comes to a tax saving of € 10,937.50. In addition, the price ceiling not to be exceeded will amount, in the case of the purchase of building land, to € 250,000 (and not € 500,000).
5 / The acquisition must relate to the whole in full ownership
The rules of the abatement cannot be applied for the acquisition of part of a building, usufruct or bare ownership. This is also the case when the seller reserves a real right of habitation.
6 / Reserved for "sales" only
The reduction is only applicable to "sales". The other agreements (donations, exchanges, sharing, etc.) are excluded from the preferential reduction scheme.
7 / Single dwelling
None of the purchasers may own, on the date of the sales agreement, the full freehold of another immovable property intended in whole or in part for housing.
When the acquisition is made by several people, they cannot, in addition, jointly own, on the aforementioned date, the full freehold of another immovable property intended in whole or in part for housing.
The goods located in other Belgian regions (in Flanders or Wallonia) are taken into account, as are goods located abroad and used for housing.
Simultaneous acquisition of several dwellings: In the event that the purchaser acquires, in the same compromise, two dwellings, he will be able to benefit from the reduction for one of them provided that it clearly specifies in its act of acquisition which of the two will be assigned to its principal residence and that it requests the abatement for this one.
Exception: the abatement "by way of restitution". If the purchasers owned other buildings which prevented them from benefiting from the reduction and if they resell them within two years from the date of registration of their new acquisition, they will be able to recover the amount of the reduction in registration fees which they would have benefited from by applying the abatement rules (restitution of € 7,500 or € 9,375 depending on whether the property is located in a development area reinforced by housing and renovation (cf. supra)).
8 / Establishment of the main residence in the new property acquired within 2 years
The dwelling must be assigned by the purchasers to the main residence within two years from the date of registration of the acquisition and no later than two years following the final date for regular presentation at registration.
This period is extended by one year (three years instead of two years) for building land, houses and apartments under construction or on plans. The deadline remains two years for all other acquisitions, even if the acquisition concerns a new house (completed) or a new apartment (completed) subject to VAT.
9 / Maintaining the main residence in the new building acquired for at least 5 years
The buyer must keep his main residence in the acquired property for an uninterrupted period of 5 years (for agreements concluded before January 1, 2013, it is sufficient to maintain the main residence for an uninterrupted period of 5 years in the Brussels-Capital Region ).
This five-year period begins to run from the date of establishment of the main residence at the address for the situation of the immovable property, therefore in principle from the date of entry in the population register or from the register of foreigners.
10 / Not already benefit from a regional tax reduction (example: housing bonus) for the acquisition of another home
None of the purchasers can benefit, for the year during which the purchase is made by authentic instrument , of a regional tax reduction (= eg housing bonus) for the acquisition of another house (it does not matter if this other house is located in Brussels, in the Walloon region or in the Flemish region) EXCEPT if the purchaser (s) renounce (s) this tax reduction for this year in question . Note that this prohibition on combining abatement and tax reduction does not apply to the Walloon housing check: you can therefore benefit from the € 175,000 reduction, even if you already benefit from a Walloon housing check for the same year.
(source : www.notaire.be)
(Please note, however, the information provided on this article is valid subject to any modification of existing legislation)