![vastgoedrecht](/sites/moore_law/files/styles/ratio_1_1_medium/public/2026-10/iStock-2222660206.jpg.webp?h=790be497&itok=5XdXPp5N) [\#Gift Tax](/en/news?topic%5B331%5D=331) [\#VLABEL](/en/news?topic%5B300%5D=300) [\#Real Estate Law](/en/news?topic%5B99%5D=99)# A new alternative to the traditional split purchase? VLABEL confirms a promising approach 12/10/2026 | Reading time: 9 minutes ![Brecht Cnockaert](/sites/moore_law/files/styles/ratio_1_1/public/2023-03/Brecht%20Cnockaert_001_HR.jpg?h=08ef5a44&itok=AZC0nE1D "Brecht Cnockaert") Brecht Cnockaert Lawyer [Contact](/en/contact) Since 1 January 2026, the traditional split purchase has become considerably less attractive from a tax perspective. A recent advance ruling by VLABEL therefore highlights an interesting alternative approach: the parent or grandparent first purchases the property in full ownership at the reduced rate of 2% and subsequently gifts the bare ownership to the children, while retaining the usufruct. For anyone looking to purchase a home for their own use while also planning their wealth and estate, this could make a significant difference. ## 1. The traditional split purchase: a prior bank gift In a traditional split purchase, the parents or grandparents acquire the usufruct of the property, while the children acquire the bare ownership. If the children do not have sufficient funds of their own to pay their share of the purchase price, the split purchase is often preceded by a bank gift. The parents or grandparents first gift the children the funds they need to pay for the bare ownership. This prior gift is also important for inheritance tax purposes. Article 2.7.1.0.7 of the Flemish Tax Code (VCF) establishes a presumption of a disguised benefit in the case of a split purchase. As a result, upon the death of the usufructuary, the property may be deemed to form part of their estate in full ownership for inheritance tax purposes, unless evidence to the contrary is provided. A prior, openly declared bank gift can serve as such evidence: the children received the funds used to purchase the bare ownership as a gift beforehand. In other words, the benefit arises from the gift rather than from the split purchase itself. However, an unregistered bank gift carries a separate inheritance tax risk. If the donor dies within the applicable risk period (five years in Flanders for gifts made from 1 January 2025), the gifted amount may still be subject to inheritance tax (up to 27% for direct descendants and partners, and up to 55% for others). Anyone wishing to eliminate this risk can register the bank gift or have the gift executed by notarial deed. By paying 3% gift tax (on a gift of movable assets to direct descendants), the donor gains tax certainty: the gifted funds will no longer be included in the estate, regardless of when the donor dies. However, this 3% is payable in addition to the registration duties on the split purchase itself. ## 2. Since 2026: a tax disadvantage on purchase Since 1 January 2026, the traditional split purchase has had a significant additional disadvantage. The reduced registration duty rate of 2% for a sole and own home now requires the buyer to acquire the entire property in full ownership. This condition is not met in a traditional split purchase. The parents or grandparents acquire only the usufruct, while the children acquire only the bare ownership. Consequently, the 2% rate cannot be applied to either the usufruct or the bare ownership. This also applies where the parents or grandparents actually intend to use the property as their family home and establish their principal residence there. In principle, registration duties of 12% are therefore payable on both the acquired usufruct and the acquired bare ownership. This is precisely why another approach becomes attractive: the parent or grandparent first purchases the entire property in full ownership at 2% and subsequently gifts the bare ownership to the children, while retaining the usufruct. \[DD1.1\] Of course, this requires the parent or grandparent to meet all the conditions for the reduced rate. For example, on the date of the purchase deed, the buyer must not own another home or building plot entirely in full ownership (known as disqualifying ownership). They must also register at the property's address within three years of the deed and maintain that registration continuously for at least one year. Anyone who still owns another home in full ownership will therefore, in principle, have to sell it first. This approach was recently submitted to VLABEL in advance ruling no. 25126. In the case concerned, a mother purchased an apartment in full ownership at the reduced registration duty rate and subsequently wished to gift the bare ownership to her two children. VLABEL confirmed that, in the circumstances presented, this subsequent gift did not constitute tax abuse. ## 3. Buy first, then gift: a better option? Broadly speaking, the comparison is as follows. Traditional split purchase: the parent or grandparent acquires the usufruct, while the children acquire the bare ownership. If the children do not have sufficient funds of their own, they receive the funds needed to finance their share in advance through a bank gift. Since 1 January 2026, the purchase no longer qualifies for the reduced 2% rate and is, in principle, subject to registration duties of 12%. Alternative approach: the parent or grandparent first purchases the entire property in full ownership. If the conditions for the sole and own home are met, the purchase can, in principle, benefit from the reduced registration duty rate of 2%. The bare ownership is then gifted to the children, with usufruct reserved. Gifts of bare ownership in the direct line are subject to progressive rates of gift tax on immovable property. The first bracket, up to €150,000 per beneficiary, is taxed at 3%. Where there are several children, each child can therefore benefit from this first tax bracket separately. Furthermore, bare ownership can be gifted in successive instalments (the so-called 'salami technique'). If at least three years elapse between successive gifts of immovable property from the same donor to the same beneficiary, the gifts are not aggregated and the lowest tax bracket can be applied again. With two parents and two children, four gifts of up to €150,000 each can therefore be made at 3% in each round of gifting, amounting to €600,000 in total. An additional advantage is that gifting bare ownership directly offers greater scope for legally structuring the transfer of wealth. Within the limits of the law, the notarial deed of gift can include conditions, obligations and provisions that cannot be stipulated, or cannot be stipulated in the same way, in a straightforward prior bank gift. One example is a gift of the remainder (fideicommissum de residuo). This also played a role in the case submitted to VLABEL. The donor wished to attach various conditions to the gift of bare ownership and, partly for that reason, chose not to proceed with a traditional split purchase preceded by a bank gift. The alternative approach may therefore be attractive both from a tax perspective and in terms of wealth and estate planning. ## 4. A practical example Suppose parents purchase an apartment on the coast for €800,000 upon retirement, where they intend to settle permanently. They have already sold their previous family home, making the apartment their sole and own home. They meet all the conditions for the reduced registration duty rate of 2%: they purchase the property together in full ownership, register their domicile there within the required period and meet the other statutory conditions. They have two children. ### Step 1. Purchase in full ownership €800,000 x 2% = €16,000 in registration duties. For sale agreements concluded from 1 January 2027, the reduced rate is expected to rise again to 3%, according to the Flemish budget agreement (September Declaration of 30 September 2026). Registration duties would then amount to €24,000. In principle, the determining date is that of the private sale agreement, not the notarial deed. The change has yet to be enacted by decree. ### Step 2. First gift of bare ownership Shortly after the purchase, each parent gifts each child a share of the property worth €150,000 in bare ownership (€600,000 in total). For gifts of immovable property in the direct line, gift tax is 3% on the first bracket up to €150,000, followed by 9% from €150,000 to €250,000, 18% from €250,000 to €450,000 and 27% above that amount, calculated separately for each donor and beneficiary. Each gift therefore falls entirely within the first bracket: 4 x €150,000 x 3% = €18,000 in gift tax. ### Step 3. Second instalment, at least three years later (salami technique) After at least three years, the parents gift the remaining share of the property in bare ownership. Assuming the property's value has remained unchanged, this amounts to €200,000, or €50,000 per parent per child. As the three-year period has elapsed, this gift is not aggregated with the first and once again falls entirely within the 3% bracket: 4 x €50,000 x 3% = €6,000 in gift tax. If the apartment has increased in value in the meantime, the second instalment is taxed based on its value at that time. In total, the parents therefore pay €16,000 in registration duties and €24,000 in gift tax, amounting to €40,000. This represents 5% of the purchase price. Bear in mind that, following the death of both parents, the children will jointly own the apartment. If one child subsequently wishes to take over the apartment alone, partition duties will, in principle, be payable upon division (2.5% in Flanders). However, this cost also arises in a traditional split purchase involving several children and therefore does not affect the comparison. ## 5. Comparison with a split purchase If the parents and children were to purchase the same apartment directly through a split purchase, with the parents acquiring the usufruct and the children acquiring the bare ownership, the reduced registration duty rate of 2% would no longer be available from 1 January 2026. A split purchase remains possible in itself, potentially preceded by a bank gift from the parents to the children to finance the acquisition of the bare ownership. However, registration duties of 12% are, in principle, payable on the purchase. For a purchase price of €800,000, this means €96,000 in registration duties (€800,000 x 12%). If the prior bank gift is also registered to eliminate the inheritance tax risk, an additional 3% gift tax is payable on the amount gifted. | | Full ownership + gift | Split purchase | |---|---|---| | Purchase price | €800,000 | €800,000 | | Registration duties | €16,000 (2%) | €96,000 (12%) | | Gift tax, first gift | €18,000 (4 x €150,000 x 3%) | – | | Gift tax, second gift (after 3 years) | €6,000 (4 x €50,000 x 3%) | – | | Total | €40,000 (5%) | €96,000 (12%) | | Difference | €56,000 saving | | This simplified calculation assumes two parents who each make gifts to two children, an unchanged value of the apartment and a sale agreement concluded before 1 January 2027. At a registration duty rate of 3%, the total would amount to €48,000 (6%), with a saving of €48,000. ## 6. A tailored approach is essential The potential tax saving is therefore substantial, but the comparison between 5% and 12% is not a general rule. The actual outcome depends on several factors, including the value of the bare ownership, the property's purchase price, the number of children or grandchildren receiving gifts, any previous gifts and the progressive rates of gift tax on immovable property. A phased gift (the so-called 'salami gift') may also be considered. By taking account of the applicable three-year period, it may be possible in certain cases to benefit from the lower gift tax brackets more than once while still qualifying for the reduced rate. Furthermore, gifting the bare ownership does not necessarily prevent this approach from being used again when purchasing a subsequent home for personal use. All the conditions for the 2% rate must, of course, be met again for each new purchase. For example, the buyer must register at the property's address within three years of the purchase deed and, for sale agreements concluded from 1 January 2026, maintain that registration continuously for at least one year. However, a new purchase shortly after the gift requires particular attention: VLABEL expressly states that, depending on the specific circumstances, this may constitute tax abuse. In addition, account must also be taken of a potential VAT disadvantage for children who receive bare ownership through a gift. The VAT authorities have taken the position that individuals who already hold bare ownership of a property acquired through a gift are not eligible for the reduced VAT rate of 6% applicable to demolition and reconstruction of their sole and primary residence. This approach must therefore always be assessed on a case-by-case basis, both financially and legally. However, particularly since split purchases no longer qualify for the 2% rate, combining a purchase in full ownership at 2% with a subsequent gift of the bare ownership may offer a particularly attractive option. ## 7. Explore your options Do you have questions about this approach or would you like to find out whether it could also be beneficial in your specific situation? Please feel free to contact us for a more detailed assessment. 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