Transfer taxes in case of cancellation of a sale agreement – Status in the three Regions
13/04/2017

Following the Flemish and Walloon Regions, Brussels finally introduced the possibility to cancel an agreement related to the transfer of a real estate asset without adverse tax consequences.

Before this possibility, the transfer taxes of 12.50% were due at the signature of the (private) sale agreement, and the reimbursement as such could only occur pursuant to a proper judgment pronouncing the cancellation of the agreement. Moreover, the cancellation without this judgment Real Estate Investment and Taxation 3 could also lead to the collection of transfer taxes for a second transfer (assumption of sale-back to the initial seller).

- Specific fixed duty of 10 EUR

In case of agreement acting the transfer of (i) the full ownership of a real estate asset, (ii) a right to build, or (iii) an usufruct, parties have one year to submit a mutual cancellation of the agreement to the relevant tax administration.

As the case may be, the mutual cancellation agreement shall be subject to a specific fixed duty of 10 EUR, and the transfer taxes of 12.50% (i) shall not be payable anymore, or (ii) shall be refunded in case they have already been paid to the tax administration.

This new regime is also applicable in case of cancellation by operation of a condition subsequent within one year from the execution of the initial transfer agreement, subject to an authentic deed being submitted to the tax administration.

- Entry into force

This possibility applies to any (private) sale agreement concluded since 29 December 2016. Legal sharing, donation and swap of real estate assets are also aimed by the law.

Flanders and Wallonia

Similar mechanisms already exist since 2007 in the Flemish Region and since 2009 in the Walloon Region: a fixed duty of 10 EUR shall be paid for the (private) sale agreement and for the cancellation agreement. If transfer taxes have already been paid, they can be refunded provided the fulfilment of certain conditions.

The scope of the Walloon regime is slightly broader and the implementation conditions of both mechanisms are not exactly similar but both enable, for some time already and in an easy way, the cancellation of a private (sale) agreement almost for free and without legal proceedings being required.

Related : Loyens & Loeff CVBA ( Mr. Antoine Béchaimont )

[+ http://www.loyensloeff.com]

Mr. Antoine Béchaimont Mr. Antoine Béchaimont
Senior Associate
[email protected]

Click here to see the ad(s)
All articles Indirect tax

Lastest articles Indirect tax

Flemish real estate transfer taxes rate changes as of 2022
29/12/2021

On 22 December 2021, the Flemish Parliament approved a series of changes to reduce the registration duties on the sale of ...

Read more

Rent waiver: tax benefit finally put into law
20/04/2021

In our previous update, we informed you that the Belgian Government was preparing new support measures in the context of t...

Read more

Détention préventive en matière de douanes et accises non soumise au contrôle de légalité d...
06/04/2021

Arrêt de la Cour constitutionnelle du 4 mars 2021 (n°39/2021). En droit fiscal, les droits de douanes et accises...

Read more

Customs seizures | EORI number
13/10/2020

Since 15 September 2020, the EORI number has become mandatory to obtain customs measures: the seizure request forms have b...

Customs seizures | EORI number Read more

Lastest articles by Mr. Antoine Béchaimont

New tax treaty between Belgium and France - consequences for the real estate sector?
16/11/2021

The new tax treaty between Belgium and France was signed on 9 November 2021. It will enter into force at the end of its ra...

Read more

Hotel City Tax in Brussels
10/04/2017

In our last Real Estate Quarterly, we mentioned the transfer of the current “City Tax” from the Municipalities...

Read more

The Specialised Real Estate Investment Fund (SREIF)
01/12/2016

The Specialised Real Estate Investment Fund (SREIF) is subject to the Law of 19 April 2014 relating to the alternative inv...

Read more

Powers of taxation of the Belgian Regions: what’s new in Flanders ?
26/08/2015

In recent years and as a result of consecutive State reforms, a series of former “national” taxes have been de...

Read more

LexGO Network