Reduction of Registration Fees to 3.5%: An Opportunity to Seize for Your Next Purchase

The presentation of the 2025 State Budget brings excellent news for property buyers. From October 1, 2024, until June 30, 2025, registration fees for property acquisitions will be reduced from 7% to 3.5%. This presents a great opportunity for anyone looking to invest in their future home!

What are registration fees?

Registration fees are a tax that must be paid when purchasing a property. Normally set at 7% of the purchase price, they add to other costs such as notary fees. The temporary reduction to 3.5% represents significant savings for buyers!

Who benefits from this reduction?

This new measure applies to the purchase of existing properties as well as sales under future state of completion (VEFA) in the case of a primary residence purchase. For investors, the measure only applies to properties under the VEFA scheme.

The Bëllegen Akt: An Additional Advantage

In addition to this reduction, you can still benefit from the Bëllegen Akt. This tax credit amounts to €40,000 per person for a primary residence, or €20,000 for a rental investment.

Example: Let’s take the example of a couple purchasing a house for €800,000 as their primary residence. If the sales agreement is signed in December 2024, they will benefit from the 3.5% reduced registration fees, amounting to €28,000, instead of €56,000 at the former 7% rate. With their Bëllegen Akt tax credit of €80,000 for the couple, they will not have to pay any registration fees and will thus save a substantial €28,000.

Why act now?

Starting January 1, 2025, the Bëllegen Akt credit will be reduced to €30,000 per person for a primary residence and eliminated for investors. By combining these measures with the temporary reduction in registration fees, now is the ideal time to take the leap and make your real estate project a reality.

Contact us today to learn more about these benefits and how you can take advantage of them for your next property purchase!