2024-09-12 11:30:00
Registration fees will decrease in Wallonia from 2025. The government clarified its measure this morning. This concerns all new properties that will be purchased in Wallonia. The fees will now cost only 3% of the property purchased.
Promised during the formation of the new Walloon government, the measure has now been confirmed. From 1 January, registration fees for the purchase of real estate will be reduced to 3%, instead of 6% and 12.5% currently.
“Today, there is an observation: we are becoming homeowners later and later. Before, it was before the age of 25. Today, it is after the age of 35. What we want is to help people become homeowners as quickly as possible. It is the first safety net to have their own home,” declared Adrien Dolimont (MR), the Minister-President of the Walloon government.
A rate of 3% only valid for first homes. Walloons who are already owners will have three years to sell their old property, and thus benefit from the new rate. The reform should boost the real estate market.
“Today, if you sell your house and buy, you are penalized, you pay 12% in taxes. Today, we are going to reduce that, with the reform, to 3%. It will be much easier to move. If we change our place of work, we change our place of residence easily, without ultimately being taxed,” indicates François Desquesnes (Engagés), the vice-president of the Walloon government.
Inheritance and gift taxes will be reduced by half regardless of the line of legal heirs. But be careful, this measure will not come into force until 2028 because Wallonia must first take back this competence from the federal government. “There was a whole series of mechanisms that were so high that it could develop the creativity of some people to avoid these mechanisms. So the idea is to simplify and reduce, by halving these rates to get out of the confiscatory aspect”says Adrien Dolimont.
The two parts of this tax reform will cost 700 million euros. A shortfall that the Walloon government will compensate for by eliminating other aid, such as the housing voucher.
Wallonia registration fees
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Registration fees in Flanders
Table of Contents
Registration Fees in Wallonia: A Comprehensive Guide
As of 2024, the Walloon government has announced a significant change in registration fees for property purchases in Wallonia. Starting from 2025, the registration fee will be reduced to 3% of the property’s purchase price, down from the current rates of 6% and 12.5% [1[1[1[1[1[1[1[1]. This reform aims to encourage homeownership, especially among first-time buyers, and boost the real estate market.
Current Registration Fee Rates in Wallonia
Before the reform, the registration fee rates in Wallonia were 12.5% for properties with a cadastral income above €745 and 6% for those with a lower cadastral income [1[1[1[1[1[1[1[1]. These rates were applicable to all property purchases, including first-time buyers and existing homeowners.
The New 3% Registration Fee Rate
The new 3% registration fee rate will only apply to first-time buyers. Existing homeowners who want to take advantage of the lower rate will have three years to sell their old property and purchase a new one. This measure aims to encourage people to become homeowners as quickly as possible, as stated by Adrien Dolimont, the Minister-President of the Walloon government.
Additional Measures: Inheritance and Gift Taxes
Aside from the registration fee reduction, the Walloon government has also announced plans to reduce inheritance and gift taxes by half, regardless of the line of legal heirs. However, this measure will not come into force until 2028, pending the Walloon government’s takeover of this competence from the federal government.
Impact on the Real Estate Market
The registration fee reduction is expected to boost the real estate market in Wallonia, making it easier for people to purchase properties and move to a new residence without being heavily taxed [3[3[3[3[3[3[3[3]. This reform should also encourage homeownership, especially among young people, who are currently becoming homeowners later and later in life.
Compensating for the Shortfall
The two parts of this tax reform will cost the Walloon government approximately €700 million. To compensate for this shortfall, the government will eliminate other aid, such as the housing voucher.
Conclusion
the reduction of registration fees in Wallonia is a welcome move for first-time buyers and existing homeowners alike. This reform should encourage homeownership, boost the real estate market, and make it easier for people to purchase properties in Wallonia. However, it remains to be seen how the government will compensate for the shortfall and ensure a smooth transition to the new registration fee rate.
References
[1] Hypotheekwinkel. (n.d.). Costs when buying a property in Wallonia. Retrieved from
[2] Brussels Times. (n.d.). N-VA wants to raise cost of Belgian citizenship to €5,000. Retrieved from
[3] AG Residential. (n.d.). The various fees involved in a purchase. Retrieved from
Registration fees in Flanders
Comprehensive Guide to Registration Fees in Belgium: Changes in Wallonia and Flanders
Are you planning to buy a property in Belgium? Understanding the registration fees associated with property purchases is essential to avoid surprises and make informed decisions. In this article, we will delve into the current registration fees in Wallonia and Flanders, as well as the recent changes that have taken place.
Registration Fees in Wallonia
In the Walloon Region, the registration fees for buying a property vary depending on the cadastral income of the property. Currently, the fees are 12.5% for properties with a cadastral income above 745 euros, and 6% for those with a lower cadastral income[[[1]]. However, as of 2025, the registration fees in Wallonia will decrease to 3% of the property’s purchase price, making it more affordable for first-time homebuyers[[[3]].
Registration Fees in Flanders
In Flanders, the registration duties have recently undergone a significant change. As of January 1, 2022, the rate of registration duties for buying a family home has decreased from 6% to 3%[[[2]]. This reduction aims to encourage people to purchase their own homes and boost the real estate market.
Reform in Wallonia: Reducing Registration Fees
The Walloon government has recently confirmed its measure to reduce registration fees for the purchase of real estate to 3%, effective from January 1, 2025. This reform will not only help first-time homebuyers but also boost the real estate market. Additionally, the government has announced plans to halve inheritance and gift taxes, effective from 2028[[[3]].
Exemptions and Exceptions
Walloons who are already homeowners will have three years to sell their old property and benefit from the new 3% registration fee rate. This exemption will encourage people to move and upgrade their homes without being heavily taxed.
Impact on the Real Estate Market
The reduction in registration fees is expected to have a positive impact on the real estate market in Wallonia and Flanders. With lower fees, more people will be encouraged to purchase properties, which will, in turn, stimulate the economy.
Conclusion
understanding the registration fees associated with buying a property in Belgium is crucial for anyone looking to invest in the real estate market. With the recent changes in Wallonia and Flanders, now is an ideal time to consider purchasing a property in these regions. The reduced registration fees will not only make it more affordable but also encourage people to invest in their dream homes.
References:
[[[1]]https://www.hypotheekwinkel.be/en/first-house/costs-when-buying-a-property-in-wallonia/
[[[2]]https://www.buyerside.be/en/blog/registration-duties-all-changes-2022
[[[3]]https://www.maxime-realestate.be/en/news/registration-fees-to-be-paid-when-buying-a-property-what-are-the-differences-between-wallonia-brussels-and-flanders
