Flemish government tightens eligibility for reduced registration duties on unique homes starting January 2026

Flemish registration duties for unique homes face stricter rules in 2026, including a 1-year residency mandate and the exclusion of split-purchase schemes.

By: AXL Media

Published: Mar 3, 2026, 8:35 AM EST

Source: The information in this article was sourced from Andersen

Mandatory residency and domicile requirements

A significant shift in the Flemish tax landscape concerns the duration of occupancy required to maintain the 2% reduced rate. Previously, buyers were only required to establish their legal domicile at the property address within three years of the deed's signing. Under the new regulations, any individual claiming the tax reduction must remain domiciled at the property for an uninterrupted period of at least one year. This obligation is assessed on an individual basis, meaning that if one partner in a joint purchase moves out before the twelve-month threshold is met, the tax benefit for that specific portion of the purchase may be revoked.

Exclusion of split-purchase arrangements

The 2026 reform introduces a major restriction regarding the legal nature of the property rights acquired. The reduced rate will now be exclusively available for acquisitions made in full ownership. This change specifically targets "split purchases," a common estate planning technique where parents buy the usufruit (right of use) and children buy the bare ownership. Historically, if these rights were acquired simultaneously in a single deed, the 2% rate could often still be applied to the individual portions. Moving forward, any part of a transaction involving usufruit or bare ownership will be subject to the standard 12% rate, with the reduced rate applying only to fractions held in full ownership.

Prohibition of joint acquisitions with companies

The Flemish legislator has also acted to close a loophole involving corporate involvement in residential purchases. Under the rules applicable until the end of 2025, a private individual purchasing a share of a property in full ownership alongside a company could still benefit from the 2% rate on their specific share. From January 1, 2026, the reduced duty is strictly reserved for acquisitions made exclusively by natural persons. If a company is a co-purchaser of an undivided share, the private individual will lose the right to the reduced rate unless the property is legally divided into distinct units with separate cadastral identifications prior to the sale.