Following in the footsteps of Flanders and Brussels, Wallonia has also decided to revise its registration duty rules.

When registering a property transfer, the buyer must pay a tax in addition to the purchase price. This is the registration fee on sale. Normally the tax is 12.5% both in the Walloon Region and the Brussels-Capital Region (in Flanders, it is 10%). However, in certain cases it is possible to benefit from a reduction of the taxable base (the so-called “abatement “) if certain conditions are met.

For example, until recently, the abatement in the Walloon Region was €20,000. In other words, one did not have to pay tax on the first tranche of €20,000 of the purchase price of a property. This resulted in a tax saving of €2,500.

Since the summer of 2023, the amount of this deduction has doubled. The tax benefit is therefore €40,000 for all properties under €350,000. This amounts to a tax saving of €5,000.

This tax benefit applies to buyers of a ‘sole owner-occupied home’. This refers to the property in which the buyer lives by himself and without owning any other property. As a result, the same person or household can benefit from this abatement multiple times in course of their lifetime, on the sole condition that it remains their only home in full property.

The conditions remain unchanged, notably:

• The purchase must be made as a private individual and not in the name of a company.
• It must be a pure purchase (i.e. no bare ownership, usufruct or part of the property).
• The property must be destined for residential use where the buyer establishes his domicile within a period of 3 years after the notarial deed of purchase has been drawn up.

In the Brussels-Capital Region, since 1 April 2023, the abatement was increased from €175,000 to €200,000, resulting in additional potential tax savings of €3,125. The purchase price cannot exceed €600,000 to benefit from it. The above conditions apply.

In Flanders, the reform already happened on 1 January 2022. The registration duty rate for the purchase of a single owner-occupied home was reduced from 6% to 3%. Again, the same conditions above apply.

The tax reforms undoubtedly make it easier for people with limited financial resources to buy their own home.

For further information on this topic, please contact Attorney Carole DE RUYT.