Real Estate 2024

BELGIUM Trends and Developments Contributed by: Pieter Puelinckx, Yves Moreau, Melissa Verplancke and Lothar Van Driessche, Linklaters

Additional Tax for Real Estate Investment Funds As of 1 January 2024, a tax at a rate of 10% – in addition to the ordinary exit tax of 15% due (notably) upon entering the Specialised Real Estate Investment Fund (SREIF) regime – will be due if an SREIF ceases to be mentioned in the list published by the Ministry of Finances before the end of an uninterrupted period of at least five years. Furthermore, a tax at a rate of 10% shall also apply if shares in the SREIF acquired following a contribution in kind of a real estate asset (or a branch of activity) in the SREIF are transferred before the end of an uninterrupted period of five years. Preference Right for Residential Tenants in the Brussels-Capital Region On 27 December 2023, an ordinance amend - ing the Brussels Housing Code was adopted in the Brussels Capital-Region. This ordinance introduces a preference right for tenants whose main residence is offered for sale. The prefer - ence right will be granted to the tenant, domi - ciled in the residential property to be sold, as well as their spouse, legal or factual cohabitant, or the descendants or adopted children of their spouse or cohabitant (provided that they are also domiciled in that property). The preference right will only apply for leases with a long-term duration (more than three years) – intended for main residence purpose – and if the sale does not fall within the grounds for exclusion provided by law. Such exclusion grounds, pursuant to which no preference right shall be granted, are notably constituted by the event of a sale:

ity) by their appointee ( préposés/aangestelden ) to third parties during and on the occasion of the exercise of their duties. A new provision clearly defines the principal as someone exer - cising authority and supervision on their own behalf with regard to the actions undertaken by an appointee. A similar provision also applies the same principle for legal persons (eg, com - panies and associations): Book 6 provides that legal entities are liable for harmful consequences caused to third parties as a result of a fault (or any other source of liability) by the governing bodies (or the members of such governing bod - ies) during and on the occasion of the perfor - mance of their duties. Book 6 further introduces a new article on the liability for defective goods which may impact the real estate sector in Belgium. The article of the old Civil Code that sets out a specific liability regime for harmful consequences caused by the ruin of a building disappears to be integrated into a new provision on defective things. Hence - forth, the draft Book 6 sets out an objective lia - bility regime of the “keeper” of defective goods. Under the new regime, the keeper is defined as someone with factual power of direction and control (that is not subordinated) over the defective (physical) thing. The draft Book 6 also encompasses a rebuttable presumption that the owner of the defective good is its keeper. Increase in Registration Duties for Long-Term Leases and Right-to-Builds From 1 January 2024, the registration duties (transfer tax) rate applicable in the event of granting long-term leases or right-to-build rights increased from 2% to 5%.

CHAMBERS.COM