Authored by the expert who managed and guided the team behind the Belgium Property Pack
Everything you need to know before buying real estate is included in our Belgium Property Pack
Buying a house in Belgium involves significant tax obligations that vary by region and property type.
Registration tax rates range from 2% to 12.5% depending on whether you're buying your first home or an investment property, while notary fees add another 1-1.5% to your purchase costs. New-build properties are subject to 21% VAT instead of registration tax, though reduced 6% VAT rates apply for specific reconstructed homes.
If you want to go deeper, you can check our pack of documents related to the real estate market in Belgium, based on reliable facts and data, not opinions or rumors.
Belgium property buyers pay registration tax ranging from 2% (Flanders first home) to 12.5% (investment properties), plus notary fees of 1-1.5% and annual property tax averaging 25-50% of cadastral income.
New-build homes are subject to 21% VAT instead of registration tax, while mortgage-related fees add approximately 1.3% of the loan amount to total purchase costs.
| Region | First Home Rate | Investment Property Rate | Notary Fees | Annual Property Tax |
|---|---|---|---|---|
| Flanders | 2% | 12% | 1-1.5% | 25-50% of cadastral income |
| Wallonia | 3% | 12.5% | 1-1.5% | 25-50% of cadastral income |
| Brussels | 12.5% (first €200,000 exempt) | 12.5% | 1-1.5% | 25-50% of cadastral income |
| New-Build (All Regions) | 21% VAT | 21% VAT | 1-1.5% | 25-50% of cadastral income |
| Reconstructed Rental Homes | 6% VAT (if eligible) | 6% VAT (if eligible) | 1-1.5% | 25-50% of cadastral income |
| Mortgage Fees (All Regions) | 1% registration + 0.3% duty | 1% registration + 0.3% duty | Included in notary costs | Not applicable |
| Administrative Costs | €1,000 average | €1,000 average | Additional to notary fees | Municipal collection fees |
How much registration tax do I pay when buying a house in Belgium?
Registration tax in Belgium varies significantly based on your property type and the region where you're buying.
In Flanders, you'll pay 2% registration tax for your first and sole-owner-occupied home as of January 2025, while investment properties or second homes are taxed at 12%. Wallonia applies 3% for first homes and 12.5% for additional properties.
Brussels maintains a standard 12.5% registration tax rate, but offers an exemption on the first €200,000 of value for qualifying first-time buyers who meet specific residency requirements. This means if you buy a €300,000 home in Brussels as your first property, you'd pay registration tax only on €100,000.
The calculation is straightforward: multiply your property's purchase price by the applicable percentage rate. For a €400,000 first home in Flanders, you'd pay €8,000 in registration tax (€400,000 × 2%).
Registration tax is collected by the notary during the property transaction and must be paid before the deed can be registered.
Are the registration tax rates different in Flanders, Wallonia and Brussels?
Yes, Belgium's three regions apply different registration tax rates, reflecting their individual tax policies.
Flanders offers the lowest rate for first-time buyers at 2% since January 2025, making it the most attractive region for first-home purchases. Investment properties face a 12% rate, which is slightly lower than other regions.
Wallonia sets first-home registration tax at 3% from January 2025, with all other properties taxed at 12.5%. This represents a significant reduction from previous rates, aimed at stimulating home ownership.
Brussels maintains 12.5% across all properties but provides the unique "abattement" exemption that eliminates tax on the first €200,000 for eligible first-time buyers. This system can result in zero registration tax for properties valued under €200,000.
It's something we develop in our Belgium property pack.
What is the exact percentage of registration tax for a first home versus a second home?
| Region | First Home Rate | Second/Investment Home Rate | Conditions for First Home Rate |
|---|---|---|---|
| Flanders | 2% | 12% | Sole main residence, no other property ownership |
| Wallonia | 3% | 12.5% | Sole main residence, occupation within 3 years |
| Brussels | €0 on first €200,000, then 12.5% | 12.5% | No other property ownership, 2+ years residency requirement |
| Investment Properties (All Regions) | Not applicable | 12-12.5% | Properties not used as main residence |
| Commercial Properties | Not applicable | 12-12.5% | Non-residential use |
| Holiday Homes | Not applicable | 12-12.5% | Secondary residence classification |
| Rental Properties | Not applicable | 12-12.5% | Income-generating properties |
Are there any exemptions or reductions in registration tax if I buy my first property?
Belgium offers several registration tax reductions specifically for first-time homebuyers, though eligibility requirements are strict.
In Flanders and Wallonia, you qualify for reduced rates only if the property serves as your sole main residence and you don't own any other real estate. You must occupy the home within three years of purchase, and the property cannot be used for rental income during this period.
Brussels provides the most generous exemption through its "abattement" system, eliminating registration tax on the first €200,000 of property value. However, you must maintain residency in the property for at least two years, and breaking this requirement triggers a clawback of the tax benefit.
The exemptions are automatically lost if you purchase additional properties or fail to meet residency requirements. Some municipalities previously offered additional rebates for modest homes, but most of these programs were discontinued in 2025.
Documentation proving your first-time buyer status and intended use as main residence is required during the notary process.
Don't lose money on your property in Belgium
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
Do I pay VAT instead of registration tax if I buy a new-build house, and how much is it?
New-build properties in Belgium are subject to 21% VAT instead of registration tax, applied to the construction value portion of your purchase.
The land component remains subject to standard registration tax rates (12% in Flanders, 12.5% in Wallonia and Brussels), while the building itself incurs the 21% VAT. This typically results in higher total taxes compared to existing properties.
For example, if you buy a new €500,000 property where €150,000 represents land value and €350,000 covers construction, you'd pay €18,000 registration tax on the land (€150,000 × 12%) plus €73,500 VAT on the building (€350,000 × 21%), totaling €91,500.
VAT is collected by the developer and remitted to tax authorities, while registration tax on the land portion is handled through the notary. This dual taxation system makes new builds significantly more expensive than existing properties from a tax perspective.
The VAT rate applies regardless of whether it's your first home or an investment property, eliminating the preferential rates available for existing homes.
Are there reduced VAT rates for new homes under certain conditions?
Belgium introduced a reduced 6% VAT rate for newly reconstructed residential buildings, but eligibility criteria are extremely strict.
The 6% rate applies only to demolished and reconstructed homes intended for residential rental purposes, implemented permanently from July 2025. Properties must meet specific documentation requirements, size limitations, and primary residence use conditions.
To qualify, the original building must be completely demolished and rebuilt rather than renovated. The new construction must be intended for long-term rental purposes, not owner occupation or short-term rentals.
Property developers must provide extensive documentation proving demolition, reconstruction timeline, and intended rental use. The reduced rate doesn't apply to standard new construction on vacant land or major renovations of existing structures.
Most individual homebuyers won't qualify for this reduced rate, as it primarily targets professional developers creating rental housing stock rather than personal residences.
What other taxes or fees do I have to pay at the notary when buying a house?
Belgian property purchases involve several additional fees beyond registration tax or VAT, all collected through the notary.
- Administrative costs: Approximately €1,000 for official document retrieval, land registry searches, and property registration
- Mortgage registration fee: 1% of your loan amount if you're financing the purchase
- Mortgage duty: 0.3% of the mortgaged amount, collected as a tax on the loan
- Third-party requests: Fees for additional searches, certificates, or specialized documentation
- Deed drafting costs: Charges for preparing and reviewing legal documentation
These fees are mandatory and cannot be avoided, adding approximately €2,000-€4,000 to most property transactions before considering the notary's professional fees. The exact amount depends on your property value, mortgage size, and complexity of the transaction.
All fees must be paid before the deed can be signed and registered, typically requiring a bank guarantee or cash payment on closing day.
How much are notary fees and how are they calculated in Belgium?
Belgian notary fees follow a regulated sliding scale set by law, typically ranging from 1% to 1.5% of the property's purchase price.
The fee structure is degressive, meaning higher-value properties face lower percentage rates. For properties under €125,000, notaries charge approximately 1.5%, while properties above €500,000 may see rates closer to 1%.
A €300,000 property purchase would typically incur notary fees around €3,000-€4,500, including both the professional fee and administrative costs. These fees cover legal advice, document preparation, title searches, and registration with relevant authorities.
Notary fees are non-negotiable as they're set by government regulation, ensuring consistent pricing across all notaries in Belgium. The buyer always pays these fees, regardless of who selected the notary.
It's something we develop in our Belgium property pack.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Belgium versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
Do I need to pay annual property tax right after buying?
Yes, you become liable for annual property tax (précompte immobilier/onroerende voorheffing) immediately after the deed is registered and ownership transfers to you.
Property tax is calculated based on the cadastral income of your property, which represents a theoretical rental value determined by Belgian tax authorities. Most municipalities charge between 25% and 50% of the indexed cadastral income as annual property tax.
The tax is typically billed annually in the fall, covering the full calendar year. If you purchase property mid-year, you'll be responsible for the portion of the year following your ownership, while the seller covers the earlier months.
Payment deadlines are strictly enforced, with penalties and interest charges applied to late payments. Most property owners set up automatic bank transfers to ensure timely payment.
The tax amount remains relatively stable year-to-year unless major renovations or market reassessments occur, making it predictable for budgeting purposes.
How much is the property tax on average for a house in Belgium?
| Property Type | Average Cadastral Income | Municipal Rate Range | Annual Tax Range |
|---|---|---|---|
| Small apartment (€200,000 value) | €800-€1,200 | 25-50% | €200-€600 |
| Medium house (€350,000 value) | €1,400-€2,100 | 25-50% | €350-€1,050 |
| Large house (€500,000 value) | €2,000-€3,000 | 25-50% | €500-€1,500 |
| Luxury property (€750,000 value) | €3,000-€4,500 | 25-50% | €750-€2,250 |
| Brussels premium (€600,000 value) | €2,400-€3,600 | 30-45% | €720-€1,620 |
| Rural property (€300,000 value) | €1,200-€1,800 | 20-40% | €240-€720 |
| Investment property (€400,000 value) | €1,600-€2,400 | 25-50% | €400-€1,200 |
If I take a mortgage, what are the taxes or fees linked to the loan itself?
Mortgage financing in Belgium incurs specific taxes and fees separate from property-related costs, adding approximately 1.3% of your loan amount to total costs.
The mortgage registration fee of 1% applies to the full loan amount and secures the lender's legal claim against your property. For a €300,000 mortgage, this fee amounts to €3,000 and cannot be avoided or reduced.
Mortgage duty adds another 0.3% of the loan amount as a tax on borrowing. This €900 charge (on a €300,000 loan) is collected by the notary and remitted to tax authorities during the closing process.
Administrative charges for mortgage documentation, official searches, and deed preparation typically add €500-€1,000 to your total mortgage costs. These cover the notary's work in preparing and registering mortgage documents.
As of 2025, mortgage interest deductions for second homes and investment properties have been phased out, eliminating previous tax advantages for rental property financing.
Are there regional tax deductions or benefits I can claim after buying a house in Belgium?
Regional tax benefits in Belgium focus primarily on main residences and energy efficiency improvements, with investment property incentives largely eliminated.
Brussels offers primary residence relief on registration tax through the abattement system, plus cadastral income rebates for energy upgrades like solar panels, insulation improvements, or heat pump installations. These rebates can reduce your annual property tax by 10-25% for qualifying improvements.
Flanders and Wallonia provide similar energy efficiency incentives, including reduced cadastral income for renewable energy installations and thermal insulation upgrades. Documentation from certified contractors is required to claim these benefits.
First-homebuyer reductions in registration tax represent the most significant regional benefit, potentially saving thousands of euros on your purchase. However, these benefits are increasingly limited to main residences only.
Second homes and investment properties face reduced incentives as of 2025, with new tax policies focusing benefits on owner-occupied housing rather than rental investments.
It's something we develop in our Belgium property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Understanding Belgium's property tax structure is crucial for making informed real estate decisions, whether you're buying your first home or expanding an investment portfolio.
Regional variations in registration tax rates, combined with ongoing changes to mortgage benefits and energy efficiency incentives, require careful consideration of timing and location for optimal tax outcomes.
Sources
- Habicom - Reduced Registration Rights for Home Buyers
- Tax Patria - Flemish Real Estate Taxation Changes 2025
- Appartement.be - Notary Fees When Buying Property
- S-Team Law - Real Estate Changes 2025 Belgium
- Lex Union - Reduction of Registration Duties in Belgium
- Belgium Federal Finance - Registration Duty
- Keytrade Bank - Costs to Buy a Home
- LinkedIn - Belgium 6% VAT on Newly Reconstructed Residential Buildings
- The Luxury Playbook - Property Taxes in European Countries
- Kreston VDN - Mortgage for a Second House