Real estate: breaking down the new tax abatement

The objectives of this reform are to make it less expensive to purchase a property that will become the buyer's main residence, and to encourage owners to improve their property's energy performance.

Here is the key information you need to know.

Although registration duties on sales are normally 12.5% for properties located in the Brussels Region, the buyer is entitled, under certain conditions, to an abatement of €200,000.

For example, for the purchase of a property worth €300,000, no registration duties are payable on the first €200,000. Only 12.5% on the remaining €100,000 is payable, i.e., €12,500 in registration duties (a saving of €25,000!).

For building land, the allowance on registration duties applies to the first €100,000.

Several cumulative conditions must be met:

• The acquisition must involve full ownership of a property located in the Brussels-Capital Region, intended, in whole or in part, for housing.
• The buyer is a natural person who cannot own another property intended, in whole or in part, for housing (except in the event of resale within 2 years).
• The buyer must commit to establishing their main residence in the property within 3 years and for an uninterrupted period of 5 years.
• The value of the acquired property, on which registration duties are paid, may not exceed €600,000 (€300,000 for building land).
• Upon signing the preliminary sale agreement, the buyer may not hold full ownership of another property, intended in whole or in part for housing.

For more details on these conditions, please refer to the tax abatement page. 

Since 1 April 2023, if the energy performance (Energy Performance of Buildings or EPB) is improved by at least two classes (two letters) within 5 years from the registration date of the deed of acquisition, an additional abatement of €25,000 for each energy class improvement may also be applied.

This abatement must be requested in addition to the primary abatement, meaning that it will only apply if the conditions for receiving the primary abatement are met.

Such renovation works can take time, so the deadline for establishing residence in the acquired property is extended from 3 years (applicable when only the primary abatement is requested) to 5 years.

For example, a property that moves up 4 energy classes would benefit from an additional abatement of €100,000, representing a tax benefit of €12,500.

Lastly, since the reform, in the event of failure to maintain residence for the required period, the tax benefit due is reimbursed in proportion to the number of years remaining.

Want to learn more about the abatement and the reform? Visit the Abatement page. 

Good to know: for registration duties, the Region's jurisdiction is currently limited to rules relating to tax rates, the tax base (e.g., abatement) and exemptions. The tax service is still managed at federal level by the FPS Finance.