Housing bonus scrapped in Flanders, but tax ease on second homes maintained
Thursday, 03 October 2019
First-time homeowners in Flanders will no longer benefit from a housing bonus after 1 January 2020. Credit: wikicommons
First-time homeowners in Flanders will no longer benefit from a housing bonus after 1 January 2020, but purchasers of a second residence will still enjoy tax ease, De Standaard, Het Nieuwsblad and Gazet van Antwerpen reported on Thursday.
Why the paradox? It’s because, since the last State reform, second homes come under the federal government, whereas first homes fall under the regional administration. As a result, coming next year it will be potentially more interesting, from a fiscal perspective, to buy a second residence than a first.
To offset the scrapping of the housing bonus, the Flemish Government has decided to lower registration fees from the current 7% to 6%. For second residences, the rate is 10%.
However, even with the higher registration rates, purchasing a second home will still be more advantageous in some cases.