The Flemish government has decided that the previously announced reduction of registration fees when buying a home will start on 1 June. On Friday morning the Flemish government definitively approved the draft decree for the reduction and simplification of the purchase tax (or registration duties) on homes. The new rates will apply to sales agreements from 1 June.
This has been confirmed by the Flemish Minister of Finance, Bart Tommelein: "We want to offer citizens clarity and legal certainty. We ask for a prompt treatment by the Flemish Parliament so that the reduction of the purchase tax for the family home can take effect on 1 June.”
It was already acknowledged that the existing system of small or large registration fees (5% or 10% respectively) would be abolished. As of 1 June there will be a single rate of 7%, with an extra discount for modest homes. For houses up to 200,000 euro the buyer will not pay registration fees on the first tranche of 80,000 euro, and you get an extra discount of 5,600 euro.
However, the buyer should be aware that the date of the sales contract (the compromis) determines the valid rate. If signed before June 1, the 5 or 10% rate will be applied.
In order to circumvent this situation, the buyer and seller can conclude a mutual purchase promise, which extends the signing of the compromise (and subsequently also the notarial deed) until after 1 June.
The Brussels Times
