Minister wants to do away with mortgage tax relief in Brussels

Brussels finance minister Guy Vanhengel (Open VLD) wants to abolish the mortgage tax break in the Brussels-Capital Region in exchange for a substantial lowering of the registration fees, report De Tijd and L'Echo. Getting rid of the mortgage relief system is just one of the proposals Vanhengel has suggested in the context of the planned tax reform of 2017. The proposals still have to be reviewed by the Brussels government.

The Brussels-Capital Region originally decided to keep its mortgage tax break – which Flanders had scrapped – in a bid to attract more residents to the capital. If Vanhengel has his way, however, the tax benefit will no longer exist for those buying a home in Brussels from 2017. The benefit would continue to apply for existing loans, however.

Instead of the mortgage tax break, Vanhengel is in favour of a reduction of the registration fees involved in buying a first home. Currently, only the first installment of €60,000 to €75,000 of the total purchase price is exempt. Vanhengel would like to see the tax-exempt installment raised to €175,000, for a total savings of €22,000 for the buyers.

He sees an advantage for buyers, because the discount on the registration fees happens immediately upon purchase, while the mortgage relief is spread over several years.