Are you planning to purchase a property and fully renovate it within 5 years? In certain cases, you will only pay 5% registration fees.
In Flanders, the standard registration fee on the purchase price of a property is 10%. This tax is reduced to 6% if it concerns a sole, own residence and if you meet all the conditions. Those who buy a property and renovate it 'significantly energetically' within 5 years, enjoy an even lower rate, namely 5%. You receive this discount even before the start of the works. This way, you have more money left to invest in an energy-efficient home.
Significant Energetic Renovation (IER)
A significant energetic renovation (IER) is a renovation where:
- at least 75% of the outer shell is insulated
- the heating or cooling system is completely replaced by a renewable energy technique (solar panels, heat pump, etc.)
Before starting the works, you must submit a building permit or notification. After completion, you must demonstrate within 5 years that you indeed carried out a significant energetic renovation. The cooperation of an architect is necessary for this. Also, notify the notary in advance so that he or she includes the reduced registration rate in the notarial deed.
Renovation Grants
You can combine your right to reduced registration fees with renovation grants, such as grants from your network manager, the EPC label premium, and/or the total renovation bonus. Check which grants your renovation qualifies for at premiezoeker.be.
New: also 5% for demolition and reconstruction
When purchasing a property from 2021 onwards, the combination of demolition and reconstruction can also qualify for the reduced rate of 5%. For building a new house, a reduced VAT rate of 6% applies until 2022 for demolition and reconstruction.
Reduction of registration fees for modest homes
The former large and small description was abolished a few years ago. However, buyers enjoy a discount of 5600 euros on registration fees if they buy a property for less than 200,000 euros (and in certain core cities 220,000 euros). If significant energetic renovation was also carried out, the discount is 4,800 euros.
Which renovation works qualify for an IER?
- Roof or attic floor insulation
- Exterior wall insulation
- Cavity wall insulation
- Basement or floor insulation
- New glazing
- Solar water heater
- Heat pump