Mortgage establishment duty
f you are buying or renovating an immovable property such as a house, flat or building plot and you take out a mortgage loan for this purpose, the mortgage will be entered in the mortgage registry (in Dutch)(opens in new window). This registration can only take place pursuant to a notary deed. Registration tax (Dutch: registratiebelasting) must be paid on such a deed. This is the mortgage establishment duty (Dutch: recht op hypotheekvestiging).
Conditions
The mortgage establishment duty in Flanders is payable:
- for every transfer of a right in rem on an immovable property located in the Flemish Region
- for which a mortgage is being established (generally as surety for a mortgage loan).
The mortgage establishment duty is determined on the sums that are secured by the mortgage as collateral for the mortgage loan.
Procedure
The notary will submit the deed for registration within 15 days of it being signed and pay the mortgage establishment duty that was advanced by the parties involved (generally the borrower).
Rates
You will pay 1% registration tax on the amount of the loan for which a mortgage is registered.
Exemptions
If you wish to establish a second or subsequent mortgage for the same claim and for the same secured sum, and the mortgage establishment duty has already been levied on the establishment of a first mortgage, you are entitled to an exemption for this second or subsequent mortgage establishment.
