In 2022, moving to Flanders will cost less

The reduced rate of 3% for family housing comes with a series of conditions. The most important is the “unique” character of the house: you cannot already be the full owner of another home or building land when you buy the home.

On the other hand, if you are still the owner of your old family home when you acquire the new one in Flanders, you have two years to resell the old one to still benefit from this advantageous rate.

“We give buyers two years to sell the old house, a period which is modeled on the bridge loan often contracted in the case of the purchase of a new home”, explains Flemish Minister of Housing, Matthias Diependaele ( N-VA).

This rate reduction represents, for example, for an apartment of 300,000 euros, a saving of 9,000 euros.

Since the reduction in registration fees to 3% is not limited to the first home, but also applies to subsequent family homes (after the sale of the first), there is a flip side. You will no longer be able to benefit from the portability of registration rights from 2024.

A rtransitional scheme is scheduled until the end of 2023. Buyers can choose between the reduced rate of 3% or the rate of 6%., but in this case they benefit from portability. The most advantageous choice will depend on each case.

For real estate other than family dwellings, the registration duty rate, currently 10%, will increase to 12%. It therefore concerns the purchase of a second home, a house or an apartment for rent, an office, a store or a warehouse.

If you buy, for example, a second home for 400,000 euros, the bill will drop from 40,000 to 48,000 euros.

If you want to benefit from the 10% rate, you still have the option of sign the sales agreement before December 31, 2021, even if the act is not signed until 2022.

Indeed, it is good the date of the compromise that will be taken into account in this case. “The Flemish government is ensuring that the new regulations, which will come into force on January 1, 2022, benefit as many buyers as possible,” Minister N-VA said.

The acquisition of a dilapidated home and its in-depth energy renovation are strongly encouraged. The registration fee rate will fall from 5% to 1%. For those who buy a home worth 200,000 euros, this represents a tax gain of 8,000 euros.

Note, however, that the renovation must meet a number of conditions. It is not enough to install high performance glazing or insulate the roof.

After the renovation, your home must meet minimum standards for insulation, energy efficiency and ventilation.

You must (re) insulate at least 75% of the exterior envelope of the house, completely replace the heating system or cooling and install a ventilation system in combination with renewable energy technology such as solar panels.

If you buy a building plot, the new regime is less advantageous because the rate also goes from 10 to 12%, while VAT on construction works is 21%.

For the demolition and reconstruction of the clean and unique dwelling, a reduced VAT rate of 6% still applies nationwide until the end of 2022.