When buying a house or land, you will have to pay 12.5 % registration duty for immovable property in the Walloon Region.

The registration duty is calculated on the basis of the conventional value (agreed price and charges). The calculation basis or tax base should never be lower than the sale value of the immovable property.

If the parties consider that the agreed price is lower than the minimum sale value, they can state the estimated sale value pro fisco in the sale agreement. The registration duty is then calculated on that value. In this way, a fine can be avoided.

Please note:

1. Since 1 January 2011, the simultaneous sale by the same person of a house or flat with the adjacent land involves paying VAT on both the building and the adjacent land.
2. From 1 January 2016 to 31 December 2017, registration duty of 15% was payable as from the purchase of a third property, intended in whole or in part for residential purposes (e.g. student room, chalet, etc.) located in the Walloon Region. The standard rate of 12.5% was applicable if the buyer mentioned in a statement or document attached to the contract, that he/she did not already own at least 33% in full ownership or usufruct of two other properties on the date of the new purchase (located in Belgium or abroad). In the absence of this statement, the 15% rate was applicable.

See also the FAQ ‘Selling with VAT’.

Since 1 January 2018, if you buy a property (house or flat) in life annuity, you enjoy a double tax advantage in the Walloon Region.

On the one hand, a reduced rate of 6% is applicable on sales of property in life annuity for the authentic deeds (with the exception of sales compromises) establishing the sale of a property that has been the seller's main residence for at least 5 years.

On the other hand, the taxable base is changed for certain sales of property in life annuity. If a natural person sells bare ownership subject to usufruct, the taxable base will in principle be the conventional value of the bare ownership, with at least the sale value of the full ownership. However, the taxable base for sales of property in life annuity, may not be less than:

• 50 % of the sale value of the full ownership if the maximum duration of the annuity is less than or equal to 20 years;
• 40 % of the sale value of the full ownership if the maximum duration of annuity is more than 20 years.

When buying a house or land, you will not only have to pay registration duty on the agreed price. Additional charges related to the sale are also part of the calculation basis of the registration duty.

Examples of charges include:

• the costs incurred by the seller to get the property sold which are borne by the buyer (publicity, intermediaries, map and measurement costs ...);
• the obligation of the buyer to pay certain taxes relating to the property for a period falling before the date of occupation of the property by the buyer.

Since 29 May 2009, the studies relating to the investigation costs of polluted or potentially polluted land and the remediation operations are not included in the charges in the Walloon Region. Those remediation costs of (potentially) polluted land may be deducted from the agreed value (price and charges).

The sale value (also called market value) is the minimum basis for calculating the registration duty. If the agreed price increased by charges is lower than the sale value, you will be taxed on that sale value.

Sale value refers to the price you are expected to be offered in a sale under normal circumstances. That is, with sufficient publicity, a sufficient number of enthusiasts and taking into account the objective factors that can affect the value of the property.

The administration will consider which property would best serve as a point of reference, taking into account in particular the nature of the property to be valued, its legal condition, the orientation of the property... The condition of the local property market plays a vital role as well.

Where the sale value is higher than the price agreed at the time of sale, the buyer must mention both the sale value and the agreed price in the deed submitted for registration.

If the administration considers that the mentioned price (or, where appropriate, the declared value) is lower than the sale value, it will inform the buyer of its estimate.

If the buyer wants more explanation or disagrees with the estimate, he/she can put forward his/her arguments to the administration. In the absence of an agreement, the administration can demand an expert examination of the property. The designation of one or three experts is done by mutual agreement between the Collector of the Legal Security Office and the buyer or, in the absence of an agreement, by the justice of the peace.

If, upon a control estimate, you are found to be in the wrong, you will pay the additional registration duty increased by default interest of 7%. If the underestimate (the difference between the sale value and the price stated or the value declared) is equal to or more than 1/8th of the price stated or the value declared, you will have to pay a fine and the costs of the proceedings will be charged to you. The fine can be reduced in accordance with a royal decree (if there is no fraudulent intent).

You can only dispute the sale value determined by the expert by bringing a claim before court.

If the price stated in the deed does not correspond to the price actually paid (in other words, if part of the price was paid 'under the table'), both the buyer and the seller incur a fine which, in principle, is equal to the evaded duty. Moreover, criminal sanctions can also be pronounced.

A purchase deed must be submitted to the administration for registration within the prescribed period. The administration can only proceed to the registration after payment of the payable duty.

When the purchase deed is drawn up by the civil-law notary, it is the civil-law notary who must submit the deed for registration and transfer the duty to the Legal Security Office. Before drawing up the deed, he/she will ask the parties liable for payment (buyer and/or seller) to advance him/her the amount of the payable duty. Deeds drawn up by civil-law notaries are registered at the Legal Security Office of their practice location. In practice, unless otherwise agreed, it is usually the buyer who pays the registration duty.

If the purchase is recorded by private deed (compromise), the obligation to register and pay duty rests on both the buyer and the seller. The parties have a period of four months to register the deed at the Legal Security Office competent for the place where the purchased immovable property is located.

It is important to respect that period, as non-compliance will incur a fine equal to the payable duty. However, that fine will be reduced according to a scale set by royal decree (if there is no fraudulent intent). The fine will be indivisibly payable by the parties. This means that the administration can appeal to both the buyer and the seller for payment of the entire sum.

If the compromise (private purchase deed) is followed by an authentic deed, you do not need to have the private deed registered provided the authentic deed (usually a notarial deed) is drawn up within four months from the date the compromise was signed. If the deed is executed before a civil-law notary, the civil-law notary still has 15 days to register it.

If you buy social housing in the Walloon Region from a legal entity governed by public law, the registration duty is reduced to 0%. In practice, this means that you pay the general fixed duty of €50.

The conditions are the following:

• The buyer must be a natural person eligible for the purchase premium as referred to in the Walloon Housing Code.
  Please note:
  In case of any withdrawal of the premium, the buyer will be obliged to pay the difference between the fixed general duty levied and the standard registration duty of 12.5%.
• It must involve the purchase of a social housing property (house or flat) from a body governed by public law (social housing company, intermunicipal cooperative society, municipality, public centres for social welfare ...).

If you purchase a modest home, under certain conditions you enjoy a reduced registration duty of 6% on part of the taxable base when you buy a home in the Walloon Region. If for the purchase you have a credit with certain credit institutions with social purpose, the duty is reduced to 5% and the registration of the mortgage deed in the form of 'Eco-Prêts' (Eco Loans) is exempted from the 1% duty.

The benefit of the reduced rate is limited to a certain amount that is different between municipalities. This amount is indexed annually. The standard rate (in principle 12.5%) continues to apply to the part of the taxable base exceeding the maximum amount.

For the sale of residential properties, the maximum amount varies depending on whether the immovable property is in an area with real estate pressure or outside such an area: