January 1, 2025 marked the entry into force of the registration fee reform adopted by the Walloon Parliament on December 4 last year. This marks a turning point in real estate taxation in Wallonia, notably with the introduction of the new reduced rate of 3%.
This reduction in registration fees in Wallonia aims to make buying property more accessible, particularly for the middle classes, who are struggling to realize their plans due to rising prices and increasingly strict banking conditions. This change is accompanied by a number of specific conditions and changes in tax benefits. Further information on these new measures is availableat
here.
New discount: terms and conditions
Previously, the registration fee rate for a single owner-occupied home was 12.5%. With this reform, the rate has been reduced to 3%, provided that certain cumulative conditions are met:
- The property acquired (house, apartment, building plot, or off-plan construction) must become the primary residence.
- Residence must be established within a maximum of 3 years in the case of an existing dwelling, or 5 years in the case of building land or a dwelling under construction.
- The buyer must not own any other real estate property outright unless they agree to sell it within three years of the purchase.
- The buyer must maintain their primary residence in this clean and unique dwelling for at least three years.
These criteria were designed to simplify administrative procedures and focus tax benefits on first-time buyers, as well as those who are buying in order to adapt their home to a new family situation. For more details on specific cases, see here.
Elimination of former derogatory regimes
In return for and in parallel with the introduction of this new "single" reduced rate, the various exceptional tax regimes that have coexisted until now but no longer meet the government's objectives will be abolished:
- The first-time buyer allowance, which had a limited impact;
- The housing check, whose benefit was more geared toward ownership than acquisition;
- The reduced rate of 6% for the purchase of modest homes, which suffered from a lack of consistency due to the absence of cadastral equalization.
Comparison with other regions
It is interesting to compare registration fees between different regions of Belgium.
The Flemish Region, which had already reduced its rate, first to 6% and then to 3% for the purchase of a single home, has reduced it once again to 2% since January 1, 2025.
For its part, the Brussels Region has not yet made any decisions on this matter. The registration fee rate is therefore currently maintained at 12.5%, further widening the gap with the other two regions. Brussels nevertheless retains its tax allowance on the first €200,000, provided that the value of the property acquired does not exceed €600,000.
To better understand, let's take two concrete examples:
- For the purchase of a property worth €400,000, the buyer will have to pay €12,000 if the property is located in Wallonia, €8,000 if it is located in Flanders, and €25,000 if it is located in Brussels.
- For a property valued at €610,000, the amount of duties will be €18,300 in Wallonia, €12,200 in Flanders, and €76,250 in Brussels due to the elimination of the allowance.
These differences highlight the growing appeal of Wallonia and Flanders for first-time buyers.
Tax benefits and implications for buyers
These changes aim to establish a fairer tax framework and encourage home ownership. However, this reform has attracted criticism, particularly regarding its potential impact on lower-income households. For an in-depth analysis of the political discussions and criticism,click here.
Furthermore, it is worth asking whether this savings on purchase is really more attractive in the long term than the various tax benefits currently in place. What impact will these changes have on mortgages, particularly in view of rising interest rates?
Each project is unique, and this reform will not necessarily benefit all profiles. A customized analysis can help you take full advantage of this new legislation.
Contact our specialists for free, personalized advice on your real estate project.
By Julie G
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