Tax law relevant to notarial acts
Tax law relevant to notarial acts
This domain tests the taxes the notary assesses, collects or flags: registration duties, transcription duty, VAT, and succession and donation duties. Accuracy on rates and reliefs is essential.
Registration and transcription
- A sale of an existing immovable is subject to a 6% registration duty and a 1% transcription duty, giving a standard 7% total.
- The Bëllegen Akt grants a credit against registration duty for a principal residence, up to €40,000 per acquirer (€80,000 for two).
- Donations of immovables require a notarial deed and registration; the rate depends on the relationship.
- VAT at 17% applies to supplies of new buildings by taxable persons; the notary checks the regime and collects where required.
Succession
- Succession duties are assessed on death, with rates and allowances varying by kinship; spouses and partners and the direct line benefit from favourable treatment.
- The notary files the declaration and collects the duty in many estates.
Worked example
A couple buys an €800,000 home as their principal residence. Duty at 7% is €56,000. The Bëllegen Akt credit is €40,000 each, so €80,000, capped at the duty actually due. The credit extinguishes the €56,000; no cash refund arises. If the property were a second home, the full €56,000 would be payable.
Traps
Forgetting the 1% transcription duty, applying VAT to an old building, and treating the credit as refundable are frequent errors. Check whether the conditions of the relief (principal residence, occupancy) are met.