The Flemish Region wants to lower registration fees again for those who buy a home in which they intend to live. These would drop from 6 to 3 percent. This is little when we compare with the 12.5% practiced in Brussels and Wallonia. Will this measure push some French speakers to move to Flanders? Will all this have an impact on real estate in the south of the country?
To find out more, we first visited a four-facade villa in Walloon Brabant. “We are on a sale price of 800,000 euros for this type of house. The prospective buyer will pay registration fees of 12.5%”, says Lancelot Ullens, real estate agent at Latour & Petit.
A few streets away, we crossed the border between Wallonia and Flanders to visit a house in Rhode-Saint-Genèse.
“For this house of an identical size and a price of 800,000 euros, the registration fees will therefore only be 3% and therefore 24,000 euros in taxes”, adds Lancelot Ullens.
A difference of 76,000 euros. Enough to already do a lot of work. A calculation quickly made by prospective buyers since Flanders announced yesterday the drop in registration rates.
Registration rates are constantly falling in Flanders. Formerly, at 10%, they have increased to 6% in 2020 and 3% today.
“On a purely social level, this is an intelligent measure. We favor those who have purchases for personal use. I recall that Flanders has increased registration fees to 12.5% for investors. This means that ‘ we charge more for those who are supposed to have more money and we charge much less for those who are going to buy for personal use “, explains Eric Verlinden, CEO of Trevi.
Take a house priced at 400,000 euros. Despite the reductions granted in Brussels and Wallonia, it will cost you with costs: 447,500 euros in Wallonia, 428,125 euros in Brussels and 412,000 euros in Flanders. This competition is likely to be felt in all the municipalities which are close to the border with Flanders.
“What is certain is that the Walloon Region and the Brussels Region will have to gradually adapt this regime. Maybe not 3 but reduce to 5 or 6%”, estime Eric Verlinden, CEO de Trevi.
Especially since Flanders goes even further by lowering VAT on renovation work from 6% to 1%, in other words almost nothing.