How is the registration tax calculated?

The registration tax and the recording tax are calculated as respectively 6% and 1% of the real estate purchase price. In the case of a land purchase where the home will be built subsequently, the registration and recording taxes are calculated based on the land purchase price.

If the real estate is purchased for personal use, each person is eligible to receive a tax credit on notarial deeds of €40.000, to be deducted from the registration and recording taxes owed.

For example:

If real estate is purchased for €400.000, the registration tax owed will be €28.000 (7% of €400.000). If the buyer still has an available tax credit, they need only pay €100. They will have a remaining tax credit of €12.000, applicable to a future purchase.

If a couple purchases real estate for €800.000, the registration and recording taxes owed will be:

7% of EUR 800.000 = EUR 56.000. If the two purchasers are each still entitled to the tax credit, they will only have to pay the minimum registration fee of EUR 100 and the remaining tax credit for each will be EUR 12.000 (40.000 - (56.000/2)) to be used for a next acquisition.

Tax credit on notarial deeds for investments in rental housing:

Physical persons can benefit from a tax credit to be applied on the registration and transcription fees normally payable on the purchase of a home in a future state of completion, provided the property is let for a minimum period of 2 years. This new temporary tax credit is limited to EUR 20.000 per purchaser.