Brussels, (Brussels Morning)- The registration fees on the purchase of a home are reduced. Brussels residents will therefore have to pay less taxes when buying a house or apartment. The Brussels government decided this on Thursday on a proposal from Finance Minister Sven Gatz (Open VLD). There will also be an additional discount for those who carry out major energy renovations.
It concerns three changes to the abatement on registration rights. This allowance is a part of the purchase price that is exempt from taxes. The new ordinance would firstly increase the current allowance from 175,000 euros to 200,000 euros. The buyer therefore does not pay any registration duties on this sum.
Furthermore, the Brussels region is raising the ceiling of the abattement. In the past, in order to benefit from the discount, the total amount of the acquisition of the property – price and costs – was not allowed to exceed 500,000 euros. According to BRUZZ, this will now be 600,000 euros. Because of the gradually rising real estate prices, the tax advantage became smaller every year.
Extra discount for energy renovation
Finally, the region is introducing a ‘reno abatement’ for an energy renovation of the house. For each jump of energy class, the allowance increases by 25,000 euros and the tax advantage increases. The condition is that the renovation improves the house at least two energy classes.
Buyers who apply for a renovation allowance will also have five years instead of two years to settle in the house. After all, extensive renovation work in a home can take a long time and buyers are often confronted with setbacks during the renovations. Buyers who do not continue to live in the home for five years no longer have to repay the full amount, but an amount that decreases depending on the remaining term.
Home as primary residence
“With these changes to the allowance, we are implementing part of the coalition agreement,” said competent minister Sven Gatz. “They should make the purchase of a home that will become the buyers’ primary residence less expensive.” The text is now being submitted for advice to, among others, the Brussels social partners, the Brussels Environment Council and the FPS Finance for technical feasibility.
Every year, more than 7,000 families, almost two thirds of the buyers, already benefit from this discount on registration fees to settle in Brussels for a longer period or permanently.