Avoiding the Increase in Registration Duties from 2% to 3%: A Concrete Action Plan for Buyers and Sellers
As of 1 January 2027, the Flemish Tax Administration (Vlabel) will increase the reduced rate of registration duties (transfer tax) for the purchase of a sole, owner-occupied home from 2% to 3%. On an average family home valued at €400,000, this represents an immediate additional tax burden of €4,000.
Vlabel recently clarified the practical rules governing this transitional period. The good news: with the right timing and contract structure, you can preserve the 2% rate. At AP&P, we outline the key rules for both buyers and sellers.
Does the Date of the Compromis or the Notarial Deed Count?
In short:
For the application of the 2% rate, only the date of the private sales agreement (the compromis) is decisive, not the date on which the notarial deed is executed. If you sign the compromis before 1 January 2027, you retain the 2% rate—even if the notary executes the deed in the course of 2027.
If the notarial deed is executed in 2027, the notary is legally required to include a specific tax declaration in the deed:
"The parties declare that the private sales agreement was concluded prior to 1 January 2027."
What Must Buyers Do to Secure the 2% Rate?
1. Sign on or before 31 December 2026: Ensure the sales agreement is legally signed by both parties before year-end.
2. Pay the deposit via bank transfer on time: Establish a clear audit trail by transferring the deposit or guarantee into the broker's or notary's escrow account before 1 January 2027.
3. Submit your mortgage application in 2026: Formally apply for your mortgage loan with your bank or credit broker before year-end and retain written confirmation.
4. Keep all preparatory documentation: Retain emails and requests for statutory certificates (such as the soil certificate, EPC, asbestos certificate, and town planning information) demonstrating that the transaction file was concretely initiated prior to 2027.
Why 2026 Is the Ideal Time for Sellers
Are you considering selling your property? Waiting until spring 2027 is strategically disadvantageous:
- Heightened buyer demand: Prospective buyers are eager to close transactions before 31 December to save thousands of euros in registration duties.
- Faster sales process: This tax deadline creates stronger commitment among buyers, reducing time on market for realistically priced properties.
- Sufficient preparation time: Starting early allows your broker and notary the necessary time to compile all mandatory certificates and finalize a legally sound transaction before the end of the year.
In real estate transactions, parties occasionally use a mutual purchase-sale promise (or call-put option) instead of a standard compromis. Fiscally, this presents a significant pitfall:
- Vlabel does not consider a mutual purchase-sale promise to be a definitive sales agreement.
- Under such arrangements, the sale is considered legally concluded for tax purposes only upon execution of the authentic notarial deed.
- The consequence: If the notarial deed is executed in 2027, you will inevitably pay 3% registration duties, even if the promise was signed back in 2026.
To secure your 2% rate, always opt for a standard, legally vetted private sales agreement (compromis).
How AP&P Protects Your File Legally and Fiscally
Navigating a transitional fiscal measure requires diligence and professional expertise. As certified real estate agents, we assist buyers and sellers at every step:
- Prompt certification: We immediately order all legally required documents (EPC, asbestos certificate, soil certificate, and urban planning information) to prevent unnecessary delays.
- Airtight agreements: We use legally verified compromis templates that clearly lock in dates, fiscal declarations, and any suspensive conditions.
- Evidence management: We ensure deposits are properly placed into escrow and verify that all parties hold the necessary supporting documentation for Vlabel.
Frequently Asked Questions (FAQ)
With a compromis, the signing date of the agreement itself is decisive. With a purchase-sale promise (option contract), Vlabel looks strictly at the date of the notarial deed. If that deed is executed in 2027, the 3% rate applies automatically.
