The changes to the levels of registration fees charged on property purchases is one of the measures that will be announced in Monday afternoon’s Flemish Government September Declaration.
The changes will mean that in future someone buying a house or flat at 250,000 euro will pay 7,500 euro in registration fees rather than the current 15,000 euro. However, someone buying a second home will see the level of registration fee on a 250,000-euro property increase from 25,000 to 30,000 euro.
The level of the registration fee charged on property purchases in Flanders has been modified several times in recent years. The latest change to the system came last year when the level of the registration fee in Flanders was reduced from 7% to 6% of the price paid for the purchase of a first home. Those opting to carry out renovation work to improve the energy efficiency of their property pay a reduced tariff of 5%.
Those purchasing a house or flat in the Brussels-Capital Region pay a registration fee that is 12.5% of the purchase price of the property that they have bought. In the case of a first home the first 175,000 euro is exempt from the registration fee.
This means that someone buying a house or flat for 250,000 euro pays a registration fee of 9,375 euro (12.5% of 75,000 euro). The 175,000-euro exemption is only valid for properties sold at less than 500,000 euro. So, a registration fee of 45,000 euro is payable on property sold at 499,000 euro, while a registration fee of 62,500 euro is payable on a property sold at 500,000 euro.