Reduction of registration fees for real estate acquisitions under some conditions

Reduction of registration fees for real estate acquisitions under some conditions

The law of May 22, 2024, which introduced a set of measures to revive the housing market, notably provided for:

A. Rental tax credit

An investor (buyer) who acquires a real estate property intended to be used as a home for a tenant, and documented by a notarial deed executed between January 1, 2024 and December 31, 2024, may benefit from a tax credit on the registration and transcription fees .

The investor (buyer) must be a natural person who undertakes to rent to a tenant the real estate property for residential purposes.

The real estate property intended to be used as a residence of a tenant must be regarded as the main residence of this tenant, provided that a lease contract is concluded for a minimum period of two years.

The amount of “rental tax credit” cannot exceed EUR 20,000 per investor (buyer).

The rental tax credit applies up to the amount paid for registration and transcription fees included in the notarial deed without exceeding 20,000 EUR.

The registration fees which need to be collected cannot fall below 100 EUR.

The real estate property must be occupied by a tenant within four years following the date of acquisition by notarial deed.

B) Temporary increase in the tax credit on registration and transcription fees for real estate notarial deeds

For the acquisitions of real estate property intended to be used as housing between January 1, 2024 and December 31, 2024, the amount of the allowance called “tax credit” is 40,000 EUR

2) Draft Budget Act 2025 : Amendment to the law of May 22, 2024

This amendment to the law introduces a reduction of half of the tax base for registration and transcription fees for the acquisitions of real estate property intended to be used as a housing and, for which a notarial deed is signed between October 1, 2024 and June 30, 2025. The conditions to be met in order for this reduction in the tax base to apply are the same as those which are applicable for granting of the rental tax credit.

The tax base will be reduced by 50%.

A request for the reduction of the tax base must be contained in the notarial deed of acquisition.

Example :

- A couple buying an apartment for 500,000 EUR as their main residence. The notarial deed is signed in November 2024.

The tax base is then reduced to 250,000 EUR. The registration fees are therefore 7% from the sum of 250,000 EUR or 17,500 EUR instead of 35,000 EUR

The tax credit is 2 x 40,000 EUR or 80,000 EUR. This tax credit applies up to the amount of registration and transcription fees due for the notarial deed. The registration fees here being 35,000 EUR, this couple will therefore not have any registration fees to pay on this acquisition.