Purchase of a Sole and Principal Residence in Flanders? Stricter Conditions for the 2% Registration Duty as of 1 January 2026

As from 1 January 2026, these conditions have been tightened. The Flemish legislator aims to ensure that the reduced rate is reserved for buyers who will effectively and durably occupy the property as their principal residence. In addition, certain commonly used planning structures – such as the split purchase – will be excluded.

On 10 February 2026, the Flemish Tax Authority (VLABEL) published an administrative position (Position No. 18044bis) clarifying how it will apply these new conditions in practice.

Below, we outline the three main changes.

1. Obligation to Maintain Domicile for at Least One Year

Until the end of 2025, it was sufficient for the buyer to register his or her domicile at the property within three years following the execution of the notarial deed of acquisition.

As from 1 January 2026, an additional condition applies: the domicile registration must be maintained uninterruptedly for at least one year. This obligation applies individually to each buyer.

For example, if you acquire a property together with your partner and both establish your domicile there, but your partner transfers his or her domicile after six months (for instance due to relationship issues), while you remain domiciled at the property, the benefit of the reduced rate may be challenged with respect to the buyer who fails to comply with the one-year requirement (except in cases of force majeure).

2. Acquisition in Full Ownership Only – Split Purchase Excluded

As from 2026, the reduced rate will be reserved exclusively for acquisitions in full ownership. This constitutes a significant change, as split purchases — where full ownership is divided between usufruct and bare ownership — no longer qualify for the reduced rate under the new regime.

The impact can be illustrated as follows:

• A acquires 30% in full ownership and B acquires 70% in full ownership – both acquisitions may benefit from the reduced rate.
• A acquires 98% usufruct and 1% full ownership, and B acquires 98% bare ownership and 1% full ownership – each may benefit from the reduced rate on the 1% acquired in full ownership; the 12% rate applies to the usufruct and bare ownership portions.
• A acquires 50% usufruct, B acquires 50% bare ownership, and C acquires 50% full ownership – A and B are subject to the 12% rate, while C may benefit from the reduced rate.

The split purchase is a frequently used estate planning technique. Typically, parents acquire the usufruct while the children (or one child) acquire the bare ownership. The advantage lies in the fact that the parents retain the enjoyment of the property (occupation or rental income). Upon the death of the usufruct holders, the usufruct is extinguished and the children automatically become full owners.

For preliminary sale agreements concluded before 1 January 2026, a split purchase executed in a single notarial deed could, in certain cases, still qualify for the reduced rate for buyers who are natural persons, provided the other conditions were met.

In practice, where one buyer acquired the usufruct and another acquired the bare ownership in the same deed, the reduced rate could still apply to the natural person who met the other statutory conditions (such as the absence of disqualifying real estate ownership and compliance with the domicile requirement). The requirement that “the entirety of the full ownership” be acquired was assessed at the level of the joint acquisition in the same deed.

In other words, as long as full ownership was acquired jointly and simultaneously, the natural person could in certain cases benefit from the 2% rate for his or her share.

For private sale agreements concluded as from 1 January 2026, this will no longer be possible. The reduced rate cannot apply to the acquisition of usufruct or bare ownership. Only any portion acquired in full ownership may still qualify for the reduced rate (with the remainder subject to the 12% rate).

For example, if A and B are natural persons and, in the same deed, A acquires 1% in full ownership and 98% in usufruct, while B acquires 1% in full ownership and 98% in bare ownership, the 2% reduced rate will apply only to the 1% acquired in full ownership by each. The portions acquired in usufruct and bare ownership are subject to the standard 12% rate..

3. Acquisition Exclusively by Natural Persons – Joint Acquisition with a Company Excluded

In the case of a joint acquisition of an undivided share in full ownership by a natural person and a company, the natural person could, until the end of 2025, still benefit from the reduced rate, provided all other conditions were satisfied.

As from 2026, the acquisition of a sole and principal home must be carried out exclusively by natural persons.

As a result, in the above example, the natural person will no longer qualify for the reduced rate on his or her undivided share in full ownership, unless the acquisition concerns legally distinct and clearly demarcated units (for example, divided through a basic deed or a boundary plan with prior separate cadastral identification, explicitly recorded in the notarial deed).

What If You Already Own Another Property? (The “Causal Link”)

To benefit from the 2% rate, you must in principle not be the full owner of another dwelling or building land at the date of the notarial deed of purchase.

An exception exists in the form of the so-called causal link. This allows the buyer to apply the 2% rate immediately, provided he or she undertakes to sell the other property within a specified period (generally two years) and there is a clear link between that sale and the acquisition of the new home. If the other property is not sold within the prescribed period, the tax benefit may be reclaimed.

Entry into Force and Transitional Rules: What Is the Decisive Date?

The stricter conditions apply to private sale agreements concluded as from 1 January 2026. The date of the private sale agreement is therefore decisive.

• Private sale agreement signed before 1 January 2026 → in principle, the previous (more flexible) regime remains applicable, even if the notarial deed is executed later.
• Private sale agreement signed as from 1 January 2026 → the new, stricter regime applies.

What Does This Mean in Practice?

The message is clear: the reduced rate remains available, but the Flemish authorities intend to ensure that the benefit is effectively reserved for those who acquire a sole and principal home and establish their domicile there on a durable basis.

If the acquisition involves multiple buyers, a company, or a split structure, it is advisable to verify in advance which rate will apply in your specific situation and which conditions must effectively be complied with afterwards.

---

Would you like further information or a tailored analysis of your file? Please do not hesitate to contact Andersen’s Tax & Real Estate Team for legal advice tailored to your specific situation.
Emilie Javid Milani (Senior Associate – Real Estate) & Pieterjan Smeyers (Partner – Tax)