Brussels: More Favorable Property Taxation for Buyers

Brussels aims to make it easier for people to purchase property by improving the real estate taxation in the capital. The project proposed by Sven Gatz, the liberal Brussels Minister of Budget, seeks to reduce the tax burden on real estate and make purchasing property in Brussels more attractive. This initiative is intended to stimulate the property market while also promoting energy savings through renovations.

What Changes Are Proposed in Property Taxation?

One of the key proposals is the increase in the tax deduction for property purchases. Currently, buyers can benefit from a tax deduction of up to €175,000, which translates into an exemption from the 12.5% registration fees on the property’s purchase price. The proposal is to raise this deduction to at least €200,000, and possibly up to €250,000.

In addition, the purchase price threshold above which the tax deduction no longer applies will also be raised. Currently set at €500,000, this threshold will increase to €600,000 under the new proposal. This change will allow buyers of more expensive properties to take advantage of these tax benefits.

A Deduction for Energy-Efficient Renovations

In addition to the adjustment of the tax deduction for property purchases, Sven Gatz also proposes an additional incentive for energy-efficient renovations. Buyers who carry out renovations to make their property more energy-efficient could benefit from an additional deduction of up to €50,000. This aims to not only stimulate the property market in Brussels but also encourage the city’s transition to greener, more energy-efficient housing.

Eligibility Conditions for the Tax Deduction

To qualify for these tax deductions, buyers will need to meet several conditions:

• The property must be purchased by natural persons (not companies).
• The property must be intended, in whole or in part, for residential use.
• The buyer must not be the full or partial owner of another property also intended for residential use.
• The buyer must make the property their primary residence for at least five years without interruption.

What Does This Mean for Buyers in Brussels?

The proposed changes could significantly impact the property market in Brussels. By increasing the tax deductions and offering additional incentives for energy-efficient renovations, purchasing a property becomes financially more attractive. Buyers will also be encouraged to invest in energy-efficient homes, which could help stimulate the market and contribute to a greener, more sustainable city.

Sven Gatz hopes to implement these changes at the beginning of next year. If these adjustments are approved, Brussels property buyers could benefit from a more favorable tax environment, lowering the barrier to purchasing a home in the capital.