The government in 2021 received €27m in net VAT receipts by real estate companies.  Photo: Steve Krack//Maison Moderne

The government in 2021 received €27m in net VAT receipts by real estate companies.  Photo: Steve Krack//Maison Moderne

Over the past six years, the net VAT receipts (i.e. after deduction of the VAT that has been applied to agencies by their own suppliers) perceived from real estate businesses has more than doubled. 

In an by the LSAP deputy Dan Biancalana, economy minister Franz Fayot (LSAP) shared that the ministry was currently looking to legally reinstate “a flat rate on the sale price of a property [to] curb the commissions charged by agents and intermediaries”. He argued that the incentive was partly to blame for the explosion in property prices.  Fayot added, despite the legislation on a maximum commission fee of 3% being lifted, real estate agencies did however, still stay around that amount. 

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, the economy minister had also said he wanted to clamp down on commission fees set by real estate agencies. The the idea, as many agencies don’t charge a 3% fee as the rate is up for negotiation with the sellers. The chamber had also added that the current crisis was not a housing crisis but an affordable housing crisis, telling the government to draft a proactive housing policy. 

The rise of housing prices has also contributed to the amount the government received from real estate agencies. Whereas the government perceived €12m in 2015, the sum received in 2021 stood at €27m, though “declarations have not yet been submitted in full,” Fayot said.