In Belgium

Tax allowances in Belgian property law are flat-rate reductions applied to the tax base before calculating the tax due. The most significant allowances relate to registration duties on property purchases and to property tax reductions.

Registration duty allowances

Each Region offers allowances to reduce the cost of purchasing a primary residence:

  • Brussels: allowance of 200,000 EUR on registration duties (12.5% rate). On a 300,000 EUR purchase, duties are calculated on 100,000 EUR instead of 300,000 EUR, saving 25,000 EUR.
  • Flanders: reduced rate of 3% for owner-occupied homes (vs 12% standard). Additional allowance on properties under 220,000 EUR.
  • Wallonia: reduced rates and allowances for modest dwellings, conditions based on cadastral income.

Property tax allowances

Reductions on property tax are available for:

  • Dependent children: reduction for households with at least 2 dependent children domiciled in the property
  • Disability: additional reduction if the owner or a household member has a recognised disability
  • Modest dwelling: reduction when the owner’s total cadastral income is below a threshold
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Good to know
Tax allowances are not automatic. For registration duty allowances, the conditions must be met and declared in the notarial deed. For property tax reductions, the owner must apply to the tax authorities.

Practical example

Aisha buys her first home in Brussels for 350,000 EUR. With the 200,000 EUR allowance, she pays registration duties on 150,000 EUR: 150,000 x 12.5% = 18,750 EUR instead of 43,750 EUR. Saving: 25,000 EUR.