Following the agreement reached by Belgium’s federal government on the 2024 Budget on 9 October 2023 (see our Tax Alert dated 12 October 2023) further details have become available with respect to the proposed measures relevant to the real estate sector, including: the introduction of a minimum five-year holding period for Belgian real estate investment funds (BE-REIFs); the nondeductibility of subscription tax; an increase in registration duties for long lease and building rights; and the removal of the reduced 6% VAT rate on demolition and reconstruction for real estate developers.
This alert provides a recap of those key measures, highlighting relevant subsequent clarifications and updates, together with details of a new provision to end the so-called “tax-on-tax effect” for BE-REIFs and Belgian regulated real estate investment trusts (BE-REITs).
It should be noted that this article has been prepared on the basis of the preliminary information available in relation to the budget agreement and it is possible that there may be amendments to the proposed measures.