Belgian territory, with regional differences.

The buyer of real estate, mortgages, ... The tax is usually often collected via the registering intermediary.

Registration duties

The following must be registered, among others:

• deeds drawn up by Belgian notaries;
• writs and summonses by Belgian bailiffs;
• decisions and judgements issued by Belgian courts and tribunals which contain dispositions subject to proportional duty for transfer against payment;
• private deeds or notarial deeds signed abroad, relating to the transfer or declaration of property or usufruct of property situated in Belgium or relating to the lease, sub‑lease or transfer of lease of such property;
• records of the public sale of tangible movable assets drawn up in Belgium;
• private contracts and notarial deeds drawn up abroad relating to the contribution of movable or immovable assets to Belgian companies which are legal persons.

There are three types of registration duties: proportional duties, specific fixed duties and the general fixed duty.

Since the introduction of the Flemish Tax Code in January 2015, the offcial tax vocabulary (in Dutch and French) used in the Flemish region for proportational duties can slightly differ from the vocabulary used in the other regions and in a federal context. In particular, in the FTC  the term "registration tax" regroups the donation tax, the duties on the sale of real estate, the division duties and the mortgages duties.   

1.   Proportional registration duties

These duties are a percentage of the tax base.

A.        Sale of real estate

The duty is set at 12.5% (10% in the Flemish Region) for sales, exchanges and all conveyancing agreements for valuable consideration, in respect of property or usufruct from real estate located in Belgium. In principle the duty is levied on the contractual value of the real estate and expenses, but the taxable value cannot be lower than the market value at the day of the agreement. However, in the Walloon Region, research costs related to polluted or potentially polluted grounds and to drainage deeds or work, are excluded from the tax base. This taxable value cannot, however, be lower than the market value of the property as of the day of the agreement.

Except for the Brussels-Capital Region, sales of small rural properties and modest lodgings can entitle to a reduced rate: 5% in the Flemish Region and 6% (or 5%) in the Walloon Region. Other special features and/or reduced rates may be applicable.

B.        Lease of real estate

In principle, the duty is set at 0.2 % for leases, sub-leases and transfers of leases of property (or parts of buildings) located in Belgium and certain other assimilated operations. This duty is levied on the basis of the cumulated amount of rent and charges.

In the case of lease, sub-lease and transfer of lease in respect of real estate (or parts of buildings) located in Belgium which is used exclusively for the accommodation of a family or a single person, the registration duties for the contracts are nil.

However, the rate for hunting and fishing leases amounts to 1.5%. As regards agreements establishing long lease rights or building rights, and their transfer, the rate is 2%, except where non-profit organisations or similar legal persons become holders of the long lease rights or building rights; in this case the rate has been fixed at 0.50%.

C.        Contribution of assets to Belgian companies

The registration duty on the contribution of assets to Belgian companies was reduced to nil as from January 1^st, 2006 (parallel with the introduction of the tax allowance for corporate equity).

However, the contribution of real estate located in Belgium, which is, in whole or in part, used or intended for housing purposes, is liable to the 12.5% duty (in the Flemish Region duty on the sale of real estate of 10%) when the contribution is made by natural persons.

D.        Capital increase of Belgian companies

The registration duty on the increase in statutory capital of a Belgian company, without contribution of new assets, was reduced to nil as from January 1^st, 2006 (parallel with the introduction of the tax allowance for corporate equity).

E.        Creation of mortgage

The creation of mortgage on real estate located in Belgium is liable to a 1% duty calculated on the amount guaranteed by the mortgage. A 0.5% rate is applicable to creations of mortgage on vessels not intended by nature to be seagoing vessels, to the giving in pledge of a business and to the creation of farming privileges.

In the Wallloon Region a zero rate applies to mortgages guaranteeing certain "eco"-debts.

F.         Public sale of tangible movable property

The public sale of tangible movable property is, in principle, liable to a 5% duty calculated on the price including expenses.

G.        Division of real estate

In the Walloon Region and in the Brussels-Capital Region, a duty amounting to 1% is levied on 1° the total or partial divisions of real estate, 2° certain transfers between co-owners of undivided shares in real estate, and 3° certain conversions of rights on real estate.

 In the Flemish Region, a duty amounting to 2.5% is levied on the above-mentioned operations. However, as far as the operations mentioned under 1° and 2° above are concerned, in certain cases and provided certain conditions are met a) the tax base is reduced by 50,000 euro and by an extra amount of 20,000 euro by child taken into consideration; or b) the rate is reduced to 1% for divisions of real estate following divorse or termination of legal cohabitation.

H.        Donation duties

Donation duties apply to all donations of movable and immovable assets, regardless of their form, their object or their arrangements and of the manner in which they are carried out. This duty is calculated on the market value of the donated goods, in principle without deduction of expenses. In the Walloon Region, expenses resulting from investigation and draining requirements on polluted or potentially polluted grounds, including demolition and restoration costs linked to this draining operation, are deducted.

The rate can differ from one Region to another.

In respect of donations made by an inhabitant of the Kingdom, the rate to be applied is the rate applying in the Region where the donor has established his fiscal residence at the moment of the donation.  If the donor’s fiscal residence had been situated in more than one place in Belgium during the period of five years preceding the donation, the longest residence determines the Region whose rates will be applicable.  In respect of donations of real estate situated in Belgium by a person who is not an inhabitant of the Kingdom, the rate to be applied is the one applying in the Region where the real estate is situated.

1. RATES OF DONATION DUTIES IN THE FLEMISH REGION

In the Flemish Region a distinction is made between donations of immovable property, movable property and undertakings.

As regards donations of immovable property, a duty is levied on the gross part of each of the donees; it is calculated according to the tables I and II here after.

TABLE I  -  Donations of immovable property between lineal relatives and partners

TABLE II  -  Donations of immovable property to collaterals and non-relatives

The duty is calculated per donee and per portion of the gift.

In respect of donations of building land special rates apply, under certain conditions, for notarial deeds drawn up between January 1^st, 2012 and December 31^st, 2019.

TABLE III  -  Donations of building land between lineal relatives and between partners

TABLE IV  -  Donations of building land between collaterals and between non-relatives

The duty is calculated per donee and per portion of the gift.

As regards donations of movable property, a 3% duty is levied on the gross part of each of the donees in respect of donations between lineal relatives or between partners, and a 7% duty in respect of donations between collaterals or non-relatives. However, donations of movable property made under the suspensive condition that the donor deceases before the donee, are assimilated to legacies and are subject to inheritance tax.

In respect of donations duties, the word “partner” refers to who, at the date of the gift,

1. is married with the donor
2. legally cohabits with the donor;
3. has been living together with the donor, sharing his household, for at least one year without interruption (three years in case of application fo the rate for family companies, see below).  These conditions are also deemed to be met when the cohabitation and the sharing of the household have become impossible, due to force majeure.  A registration in the population register holds a refutable assumption of uninterrupted cohabitation and shared household.

Subject to several conditions, certain donations of the full ownership, bare ownership or usufruct of the assets of family businesses or shares of family companies, are exempted. This exemption does not apply to transfers of immovable property essentially used or intended to be used as a dwelling.  

2. RATES OF DONATION DUTIES IN THE WALLOON REGION

In the Walloon Region, a distinction is made between the general regime and the conditional regime applying to donations of movable property, dwellings or undertakings.

In the general regime, a duty is levied on the gross part of each of the donees; it is calculated according to the tables I and II hereafter.

TABLE I  -  Donations between lineal relatives, between spouses and between legal cohabitants – General regime

TABLE II  -  Donations between collaterals and between non-relatives - General regime

The duty is calculated per donee and per portion of the gift.

In this Region the following definitions apply: 

• “spouse” means the person who, on the date of the donation, was married to the donor, in accordance with the Civil Code, and the person who, on the date of the donation, was married to the donor, in accordance with Chapter III of the law on international private law;
• “legal cohabitant” means the person who, on the date of the donation, was domiciled and legally cohabiting with the donor, in accordance with the Civil Code, and the person who, on the date of the donation, was domiciled with the donor or had his/her habitual residence with the donor, within the meaning of Article 4 of the law on international private law, and was living together with the donor, in accordance with Chapter IV of the same law.

For donations of movable properety, the following proportional rates on the gross share of each of the donees are due:

• 3.3% on donations between lineal relatives, between spouses or between legal cohabitants;
• 5.5% on donations between brothers and sisters or between uncles/aunts and nephews/nieces;
• 7.7% on donations between other persons.

However, the above-mentionned rates do not apply to suspensive conditions after the donor's death.

The favourable rates of Table III may apply to donations of dwellings, but only where:

• it concerns a donation, between lineal relatives, spouses or legal cohabitants, of a ‘dwelling’, i.e. (a portion of) a real estate that is in the unrestricted ownership of the donor and is intended to be used wholly or partly as a dwelling;
• this dwelling is situated in the Walloon Region and;
• it has been, in principle, the donor’s main residence for at least five years at the time of the donation.

TABLE III  -  Donations of dwellings between lineal relatives, spouses or legal cohabitants - Preferential regime

As regards certain donations of businesses and donations of property rights on agricultural land, or on shares or securities of certain companies, they are liable, subject to certain conditions, to a 0% duty. This rate does not apply to immovable property used partially or wholly as a dwelling.

3. RATES OF DONATION DUTIES IN THE BRUSSELS-CAPITAL REGION

In the Region of Brussels-Capital, a distinction is made between donations of immovable property, donations of movable property, donations of dwellings and donations of undertakings.

As regards donations of immovable property a duty is levied on the gross part of each of the donees; it is calculated according to the tables I to IV hereafter.

TABLE I  -  Donations of immovable property between lineal relatives, between spouses and between cohabitants

“Cohabitant” means any person being in a situation of legal cohabitation such as defined in Civil Code.

TABLE II  -  Donations of immovable property between brothers and sisters

TABLE III  -  Donations of immovable property between uncles or aunts and nephews or nieces

TABLE IV  -  Donations of immovable property between any other persons

As regards donations of movable property, a 3% duty is levied on the gross part of each of the donees in respect of donations between lineal relatives or between spouses or cohabitants, and a 7% duty in respect of donations between collaterals or non-relatives. However, donations of movable property made under the suspensive condition that the donor deceases before the donee, are assimilated to legacies and are subject to inheritance tax.

The favourable rates of Table V may apply to donations of dwellings, but only where:

• it concerns a donation between lineal relatives, between spouses or between cohabitants;
• the donation is a “dwelling” i.e. (a portion of) a real estate intended to be used wholly or partly as a dwelling, and that is in the unrestricted ownership of the donor, and;
• the dwelling is situated in the Brussels-Capital Region.

Donations of building land are explicitly excluded from the preferential rate.

In order to be entitled to the preferential rate, the donee may not be the owner of a dwelling and the donee or one of the other donees have to make certain commitments.

TABLE V  -  Donations of dwellings between lineal relatives, between spouses and between cohabitants - preferential rate

The duty is calculated per beneficiary and per portion of the gift.

As regards certain donations of businesses (full ownership of an industrial, commercial or agricultural undertaking or of a liberal profession), as well as donations of shares of certain companies, they are liable, subject to certain conditions, to a 3% duty. This rate does not apply to immovable property used partially or wholly as a dwelling.

I.        Other operations

Other operations, which are not detailed here, are also liable to proportional registration duty (e.g. certain judgements and rulings).

The amount of proportional duties can in no case be lower than the general fixed duty. (see below)

2.   Specific fixed duties

These duties vary according to the nature of the deed:

• protest actions: 5 euro;
• the permission to change one's first name (490 euro, with possible reduction to 49 euro), the permission to change one's family name (49 euro) or the permission to add another name or a particle to a name or to substitute a small letter for a capital letter (740 euro, with possible reduction to 490 euro);
• the total or partial discharge of mortgage taken out in Belgium: 75 euro;
• in the Flemish Region, the amicable rescission or cancellation of pre-contracts: 10 euro;
• in the Walloon Region, some conventions relating to rescission of sales, sharings, donations and some other deeds: 10 euro.

3.   General fixed duty

The general fixed duty is levied on all deeds not explicitly included in the Code of Registration Duties, Mortgage Duties and Court Fees, or in the Flemish Tax Cade, as having been made subject to proportional duty or specific fixed duty, for example, marriage contracts, wills, most appendices to certified deeds, certain leases,...; moreover, the general fixed duty is levied on deeds which are in principle subject to proportional duties, but which have been exempted by some provision of the Code, in as far as the Code does not explicitly relieve them from the registration duties.

The general fixed duty is 50 euro.

Mortgage duty

Mortgage duty is levied on the registration of mortgage and privileges on immovable property.

Court fees

These duties are levied on certain operations carried out in the law-clerk's office of courts and tribunals.

A distinction is made between enrolment duty (registration of lawsuits in the role), drawing-up duty (levied on the deeds of the clerk of the court), and expedition duties (on expeditions, copies or extracts which are delivered in clerk's offices).

Registration duties

The registration duties are nil for certain deeds, such as certain transfers of real estate intended exclusively for education; leases, underleases or assignment of leases relating to real estate or parts of real estate which are located in Belgium and intended to be exclusively a single person or single family lodging.

The King can rule that certain kinds of deeds drawn up by notaries and bailiffs shall be exempted from the registration formality, but this exemption shall not entail the relief from duties applicable to these deeds.

In the case of lease, sub-lease and transfer of lease in respect of real estate (or parts of buildings) located in Belgium which is used exclusively for the accommodation of a family or a single person, the registration duties for the contracts are nil.

In respect of donations of dwellings in the Walloon Region a 12,500 euro tax exemption is granted (25,000 euro if the donee’s gross portion does not exceed 125,000 euro). The value relating to the possible professional share of the immovable property entitling to the rate applied to donations of businesses (see below), is not taken into account when determining the taxable share.

As regards certain donations of businesses and donations of property rights on agricultural land, or on shares or securities of certain companies, they are liable, subject to certain conditions, to a 0% duty. This rate does not apply to immovable property used partially or wholly as a dwelling.

In the Walloon Region, are exempted from donation duties, under certain conditions:

• the value of real estate located within the perimeter of a Natura 2000 site or within the perimeter of a candidate site  for the Natura 2000 network;
• the value of growing trees in woodlands and forests;
• the value of stocks and shares of forestry groups, inasmuch as this value relates to growing trees in woodlands and forests.

Creation of mortgage on vessels intended by nature to be seagoing vessels are not chargeable to the proportional registration duty.

In the Walloon Region, the duty is reduced to nil where the mortgage secures a loan granted by the “Société wallonne du Crédit social", the “Guichets du Crédit social” or the “Fonds du Logement des Familles nombreuses de Wallonie”.

In the Walloon Region and in the Brussels-Capital Region, donees having at least three children under 21 at the time of the donation are entitled to a tax reduction. In the Flemish Region, this reduction is granted only on behalf of immovable property not entitled to the special rate for building land.

For a certain number of operations, there is an exemption from the proportional registration duty (for example: for operations liable to VAT).

Mortgage duty

Certain types of registration (notably those payable by the State) are exempt from mortgage duty.

Court fees

Several exemptions.

Registration duties

See Basis of assessment.

Mortgage duty

0.3% of the amount (principal and accessories) for which the registration is contracted or renewed (with a minimum of 5 euro).

Court  fees

These are fixed duties which vary case by case and which are levied either by operation or by the number of pages of the concerned document.

Registration duties are levied, as a rule, when a deed or written document is registered, i.e. at any formality which consists in copying, analysing or mentioning this deed or this written document by the receiver of registry feed and stamp duties in a register made for this purpose. Unless otherwise specified, the registration is only concluded after payment of the registration duties. For registration taxes administred by the Flemish tax administration the taxpayer must be paid promptly after receiving a notice of assessment.

Mortgage duty 

The mortgage is registered only after payment of the mortgage duty by the applicant.

Court fees

In principle, court fees are payable when the operation has been performed.

Usually professional intermediaries (notaries, ...) pay the duties on behalf of their clients and transfer the revenues to the appropriate tax collector, being the federal or the Flemish tax administration.