What is the reduced registration duty?
The reduced registration duty is a preferential measure that was originally introduced to stimulate the purchase of a first and only home. The measure aimed primarily to support (young) buyers in acquiring their first home.
Those who meet the conditions pay only 2% registration duties instead of the usual rate of 12%.
The conditions to benefit from the 2% rate are tightened as of 1 January 2026.
Existing conditions to benefit from the reduced rate
To qualify for the reduced rate of 2%, the following conditions already had to be met:
- It must concern a genuine purchase, meaning a sale of real estate in exchange for a sum of money. Withdrawals from a company or exchanges are not eligible.
- The purchase must be carried out by one or more natural persons. The property could therefore be partially acquired by a legal entity, provided that at least one natural person was involved. In that case, the reduced rate applied only to the natural person.
- The purchase must be a joint and simultaneous acquisition in full ownership. An acquisition in bare ownership and usufruct remained possible, provided that these were acquired together and the property was acquired in full.
- It must concern the purchase of an existing dwelling, mainly intended for residential use.
- The buyers must register their domicile at the address within three years after the notarial deed.
- The buyers may not own another dwelling or building land in full ownership, either in Belgium or abroad.
This meant that the following structures were still allowed:
- Split purchase: for example, where the company acquires the usufruct and the natural person acquires the bare ownership. In that case, the natural person could benefit from the 2% rate, provided that the other legal conditions were also met.
- Joint purchase with the company: the natural person and the company each acquire an undivided share (for example 50% each). Here too, only the natural person could benefit from the 2% rate, subject to compliance with the other applicable conditions.
What has changed since 1 January 2026?
The conditions for benefiting from the reduced registration duty have been tightened on several points.
(I) Obligation to remain domiciled for one uninterrupted year
Buyers who wish to benefit from the preferential regime must still register their domicile at the address of the purchased property within three years after the execution of the deed. In addition, they must now remain domiciled there for at least one uninterrupted year. This obligation applies individually to each buyer.
(II) The reduced rate will only apply to acquisitions in full ownership
The reduced rate will henceforth apply exclusively to acquisitions in full ownership. Split purchases are therefore excluded. This means that the acquisition of only usufruct or only bare ownership will always be subject to the 12% rate. It is assessed per acquirer whether he or she effectively acquires full ownership.
(III) The property must be fully acquired by natural persons
The property must be acquired entirely by natural persons. Joint acquisitions with a legal entity, such as a company, are no longer eligible for the reduced rate.
This condition is furthermore assessed at the level of the entire transaction and no longer individually per buyer. When a natural person and a legal entity acquire a property together, the entire transaction will be subject to the 12% rate.
The reduced rate may still apply in the case of a separate acquisition. This is the case when the natural person and the legal entity each acquire a legally distinct part (for example, a private residential part and a professional part). The condition is that the property has been legally subdivided by means of a deed of basic division, as is the case with apartment rights.
Conclusion
The new regime applies to private sale agreements signed as from 1 January 2026. For agreements signed before 1 January 2026, the old regime remains applicable.
Any questions?
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