Reduced rate of 6% registration tax benefit through refund

Since 1 June 2018, the registration tax levied on the purchase of a property has been subject to two reduced rates, namely the 7% rate for the purchase of a 'single, own family home' and the 6% rate for a property that will undergo major energy renovation works within five years of its purchase.

What if you have bought a house in order to establish your main residence there and only decide to carry out an energy renovation after purchasing it? In that case you bought the property at 7% registration tax, although in principle you would be entitled to the reduced rate of 6%.

The Flemish Tax Administration (VLABEL) has confirmed that, in such a situation, you can still claim the reduced rate of 6% by way of restitution.

The taxable person can obtain this refund by submitting a declaration, which proves that you are eligible for the 6% rate.

Please note that this does not mean a rerouting of the time limit within which the taxpayer must establish his main residence in the property. In order to benefit from the reduced rate of 7%, the taxpayer has a period of two years in which to comply with his registration obligation, whereas if the reduced rate of 6% is applied, this period is five years. If the taxpayer loses sight of the two-year period, he runs the risk of increasing the tax, for which restitution as part of the energy renovation will not be able to provide a solution.

Do you have any further questions? You can always contact our advisors

Latest news

Great Place To Work

VGD elected Great Place To Work 2019

Read more

Green light for the mobility budget!

Read more

Latest news

Read our latest news