Compelling opportunities for foreign property investors: Flemish sales tax under the microscope

If you are a foreign investor considering purchasing property in Belgium with a view to reselling it, it is important to know that Flanders has a special fiscal regime for those who trade in property on a professional basis. This system, which grants a significantly reduced sales tax to so-called “professional sellers”, offers real advantages. However, the rules of this system do vary from region to region.

The favourable regime for professional sellers in Flanders

Since January 1st, 2025, the sales tax for recognised professional sellers in Flanders has been set at 6 per cent. This rate is considerably more advantageous than the standard rate of 12 per cent that applies to ordinary purchases. Until the end of 2024, this preferential rate was even lower, at 4 per cent, but the Flemish government has since adjusted it. The reduced rate only applies if you are accredited as a professional seller. You can obtain this accreditation by submitting a formal professional declaration to the Flemish Tax Administration (VLABEL). This accreditation is crucial: without this status, you will not be eligible for the reduced sales tax.

It is also important that the purchase is made through a private sale and not through a public procedure. In addition, the notarial act must explicitly state that you are acting as a professional seller. This statement is not a merely administrative formality, but an essential condition for invoking the favourable regime. Later adjustments are not possible.

However, the benefit of the reduced rate is not unconditional. Anyone who is recognised as a professional seller must realise at least three sales of property on Belgian territory within a period of five years. In addition, each property you purchase under the preferential rate is subject to a separate sales obligation. Specifically, the property must be resold at the latest by the end of the eighth calendar year after purchase. If this does not happen, you will still owe the remaining difference with the standard rate, plus an administrative additional charge of twenty percent. These control mechanisms make it clear that the regime is a favourable measure, but one with clear obligations.

Regional differences: Brussels and Wallonia

Anyone purchasing property in Belgium must also take into account the fact that the rules on registration tax are regionalised. Brussels and Wallonia have their own rates and conditions for professional sellers. For example, the rate in Wallonia is currently five per cent, while in Brussels it is eight per cent. The requirements for resale are also not uniform: in the other regions, you have ten years to resell a property, compared to eight years in Flanders. In addition, a security deposit is required in the other regions. These differences underscore the importance of an informed approach to real estate investments.

Obligations and points of attention for investors

Although the Flemish regime is appealing, it is clear that the status of professional seller carries with it obligations that must be strictly followed. The mention in the notarial act, the correct monitoring of sales deadlines and compliance with the required level of activity are all conditions that can have fiscal consequences not respected. Moreover, it is not enough to be familiar with these rules in Flanders alone. Anyone operating in multiple regions must thoroughly inform themselves about the local regulations in each case. The location of the purchased property determines which regulations apply.

In summary, Flemish sales tax law offers an interesting fiscal advantage for foreign investors who purchase property with a view to resale, provided that they are accredited as professional sellers and strictly comply with the applicable requirements. At the same time, you need to be aware of the regional differences within Belgium and the enforcement of this regime. Good guidance is therefore no luxury.

Are you considering investing in property in Flanders with a view to reselling it in the medium term? Feel free to contact us for legal and fiscal advice tailored to your situation. We will be happy to guide you through the entire process: from the accreditation procedure to the resale strategy.