As is customary each year, the Flemish Government makes a declaration in the Flemish Parliament in September. The Prime Minister explains the main points of the following year's budget.
We learned that the portability system will be phased out and that the Flemish government will reduce the sales tax for the purchase of an own sole home from 6% to 3%. Also, the rate for a second, third, fourth, etc. home will increase from 10% to 12%.
Buy a new build now, or wait? We will happily give you a rundown.
Rate adjustment
The normal payable rate for the registration tax that applies to all real estate sales will be increased from 10% to 12%, except on the purchase of an own sole home, social housing or the purchase by a professional buyer/property dealer.
For those who buy a new build, it will still be 12%, even if it is for their own sole home. The reduced rate is not applicable. In the case of new builds, of course, it only concerns the acquisition of the land share. Nothing changes for the construction part, which is the largest, and the VAT regime still applies. The fact remains that it is more interesting to buy now and register the purchase deed by the end of the year.
Elimination of portability
Portability lets you carry over the already paid registration fees on a previous purchase and offset them against a new purchase. However, the reduction that can be applied is limited to the amount already paid with a maximum of € 13,000.
This system will be eliminated as of 1 January 2024. Until 31 December 2023, the buyer still has the opportunity to take advantage of the portability.
Buy now?
Yes, the rate change will take effect on 1 January 2022. For the application of the new rate, the registration date of the purchase deed is decisive (the notarial deed is usually presented for the registration). Therefore, it's important to be quick. As concerns portability, you still have until 31 December 2023. We will be pleased to guide you further.
Some of our current projects:
- Hasselt, De Bonnefant
- Hasselt, Hastrid
- Werchter, Brouwmeester
- Mechelen, Maarten
- Hamme, Nieuwe Markt
- Diest, Ezeldijk
- Vilvoorde, Hendrik 1
