Is It Advantageous to Buy in Flanders in 2022?

Starting January 1, 2022, the rules regarding registration fees in Flanders will undergo significant changes. Does this make buying a home in Flanders more appealing, or not? The answer depends on your individual situation. Here are the key points to consider.

What Are the New Rules in 2022?

Currently, the registration fee for purchasing a primary residence in Flanders is set at 6%. This rate is already relatively attractive compared to other regions like Brussels and Wallonia, where the registration fees can reach up to 12.5%, unless the property is modest. In 2022, this fee will be halved, dropping to just 3%.

What Are the Benefits of This Change?

The reduction of registration fees to 3% for primary residences makes buying a home in Flanders much more advantageous. This applies to people purchasing their first and only home, with no other properties owned. By reducing the 6% fee to 3%, significant savings can be made depending on the price of the property.

There is also an additional benefit if you plan to carry out major energy renovations. If you undertake significant energy-efficient renovations within 5 years of purchasing the home, the registration fee can be reduced even further to just 1%, instead of the standard 5%. This provides a significant financial incentive for those looking to improve the energy efficiency of their homes.

Moreover, if you are purchasing a modest property (valued at €220,000 to €240,000 in some popular municipalities), the Flemish government offers an €800 reduction in the registration fees, making homeownership more accessible for young buyers or households with modest incomes.

Important: You can already benefit from these new reductions starting from the date the deed is signed. Therefore, if you sign a compromise in 2021 but the deed is signed in 2022, you will still benefit from the new rates.

What Are the Drawbacks?

However, there is a drawback for those looking to buy a property in Flanders for rental purposes or as a second home. Starting January 1, 2022, the registration fees for these types of purchases will increase from 10% to 12%. This is a significant rise if you are looking to buy a property to rent out or for a second home.

Fortunately, the increase is applied based on when the compromise agreement is signed. If you sign a compromise in 2021, but the deed is signed in 2022, you will still benefit from the 10% rate instead of the new 12%.

Should You Wait to Buy in Flanders?

Whether you should wait to buy in Flanders in 2022 depends on your situation. If you're buying a primary residence, the reduction in registration fees to 3% offers significant financial benefits. You can already sign a compromise in 2021 and benefit from the reduced rates in 2022. However, if you’re looking to buy a property for rental or as a second home, it’s advisable to act quickly before the fee increases to 12%.

In any case, it’s essential to carefully evaluate your plans and determine whether you can take advantage of the current rates or if waiting until 2022 to benefit from the new rules is more beneficial. Consulting a notary or real estate advisor is also recommended to ensure you're making the best decision based on your circumstances.

Conclusion

Buying a property in Flanders in 2022 can be particularly advantageous for first-time homebuyers, thanks to the reduction of registration fees to 3%, or even 1% for energy-efficient renovations. However, for those planning to buy for rental purposes or as a second home, it's better to act quickly before the registration fee increases to 12%. Plan your purchase based on your goals and the most favorable financial situation for you.