Abatement

Do you have a question, or do you want to submit a grant application or an appeal about your registration duties abatement? Please Opens in new windowcontact the FPS Finance (Administration of Legal Security), which currently manages these duties

When registering the purchase deed of a property, the buyer must pay a tax known as registration duties on sales.

Registration duties on sales normally amount to 12.5% for property located in the Brussels-Capital Region. They are calculated according to the conventional value (stipulated price and charges), which cannot be lower than the market value of the property.

In the Brussels-Capital Region, the buyer may, if certain conditions are met, benefit from an abatement on these duties (i.e., a reduction in the tax base for registration duties). In other words, it is a reduction in the amount of registration duties owed by the buyer.

This means that for the first €200,000, the buyer pays no registration duties. For example, if the purchase price of the property is €200,000, the buyer will not pay any registration duties, i.e. a €25,000 tax benefit.

This abatement also applies to the purchase of a property that is under construction or bought off-plan, provided that the acquisition is subject to registration duties. This is because the acquisition may be subject to VAT if the property sold is considered new and the seller is liable for VAT, for example, if the seller is a property development company specialising in the construction and sale of buildings.

The amount on which registration duties are paid may not exceed €600,000. This amount includes not only the purchase price but also any additional charges imposed on the buyer (for example, an occupancy fee for living in the property before ownership is transferred, typically on the date the authentic deed of sale is signed before the notary). 
In short, to qualify for the abatement, the total purchase price of the property, including charges, must not exceed €600,000.

The abatement is designed to help Brussels residents buy their first home and settle in our region for the long term.

With a rate of 12.5%, registration duties in the Brussels-Capital Region are among the highest in Europe. Many households, particularly single individuals and young people, find it extremely difficult to become homeowners. Some are even forced to leave the Brussels-Capital Region.

Introduced in late 2002, this measure has undergone several changes to reflect developments in the Brussels property market and evolving housing policy ambitions. 

To benefit from this abatement, all the following conditions must be met:

• The property must be situated in one of the 19 municipalities of the Brussels-Capital Region.
• The buyer is a natural person (not a legal entity).
• The buyer must acquire full ownership of the entire property.
• The property must be used or intended, wholly or partly, for housing.
• Upon signing the sale agreement, the buyer must not already own in full ownership an entire property that is used or intended, wholly or partly, for housing.
  • There is one exception to this condition: the abatement may be granted “by way of restitution” if, at the time the sale agreement is signed, the buyer owns in full ownership another property, that is intended, wholly or partly, for housing, and sells it within 2 years of registering the deed for the new purchase.
• The buyer must establish their main residence in the property benefiting from the abatement within 3 years of registering the deed on which the proportional registration duties were levied.
• The buyer must maintain their main residence in the property for an uninterrupted period of 5 years starting from the date the residence was established. Since 1 April 2023, if the buyer fails to maintain residence for the required period, the tax benefit must be repaid proportionally, based on the number of years remaining.
• The amount on which registration duties are calculated may not exceed €600,000. 

An abatement also applies to the purchase of building land, covering the first €100,000 of the purchase price. This means that when buying building land in the Brussels-Capital Region, no registration duties (set at 12.5%) are due on the first €100,000. This represents a potential saving of up to €12,500 (€100,000 x 12.5%).

The abatement for building land is subject to the same conditions as the general abatement, with one key difference: the amount on which registration duties are calculated may not exceed €300,000. 

Important: The abatement for the purchase of building land does not apply to the purchase of a property under construction or a home bought off-plan. These may be eligible for the €200,000 abatement instead. The €100,000 abatement applies only to the purchase of undeveloped land, where the seller is not contractually committed to building on the land.

Buying a home is often the perfect time to carry out renovation work. It is also the moment when registration duties are due. That is why the Brussels-Capital Region has introduced a tax incentive to encourage energy-efficient renovations:  an additional reduction of the taxable amount, on top of the main abatement.

This additional abatement amounts to €25,000 for each improvement of one energy class, starting from a minimum of two classes. 

As it is an additional abatement, it will only apply if the main abatement applies. It is therefore subject to the same basic conditions. 

To qualify for the additional abatement, the energy performance of the purchased home (known as the “EPB”-rate) must be improved by at least two energy classes within 5 years from the date of registration of the deed of acquisition or from the final deadline for submitting it for registration.

Finally, because improving the EPB-rating can take time (applying for planning permission, obtaining quotes, carrying out the work), the deadline for establishing your main residence in the property has been extended from 3 years to 5 years.

The information provided on this page is subject to changes in existing legislation.

By providing this information, Brussels Fiscality does not commit to guarantee that an abatement will be granted. If your request for an abatement is refused, there is no need to file an appeal with Brussels Fiscality. Registration duties fall under the authority of the Federal Public Service Finance. For more information, External linkclick here.

If you have any questions about your specific case, please contact the Administration of Legal Security of the FPS Finance. Your notary can also provide advice.

• Opens in new windowArticle 46bis of the Code of Registration Duties, and of Mortgage and Registry Fees (only available in Dutch and French)
• Opens in new windowArticle 46ter of the Code of Registration Duties, Mortgage and Registry Fees (only available in Dutch and French)
• External linkOrdinance of 14 December 2017 amending Article 46bis of the Code of Registration Duties, Mortgage and Registry Fees, with the aim of introducing an abatement on registration duties due on the sale of building land  (only available in Dutch and French)
• Opens in new windowOrdinance of 17 November 2022 amending the abatement on registration duties and introducing an additional abatement on registration duties for energy performance improvements (only available in Dutch and French)