Buying Property and Real Estate in Belgium

Belgium has become popular for foreign property ownership since the headquarters of the European Union was based at Brussels. This has caused property values to rise, especially close to Brussels, although less expensive property can be found in the countryside. Main languages spoken in Belgium are French, Flemish and German.

There are no restrictions on foreign ownership of property in Belgium. Capital Gains Tax is chargeable at the basic rate of 40% on all income from the sale of real estate, including the income of non-resident companies.

Antwerp is the largest city in Belgium with a population of about 500,000. Brussels is a popular location for governmental workers, whilst Ixelles, to the east of Brussels popular for young commuters and residents. East and West Brussels have larger English speaking areas.

Buying Real Estate in Belgium

The sale of a property is confirmed by entering into a Sale Agreement  and placing a deposit of typically 10% of the agreed sale price. Once you have entered into the Sales Agreement, you are immediately and legally bound to purchase the property. Neither the vender nor the buyer is permitted to withdraw from the Agreement without a penalty, so both parties can be assured the purchase will proceed.

If you make a formal offer for a property which is accepted by the vendor by counter-signing your offer, you have entered into a Sales Agreement. So it is common practice that at the time of making an offer, any loan agreements, mortgages, building or renovation permits, etc are included as suspensive conditions in the Sales Agreement. In these circumstances it also common  practice to deposit the advance payment with the notary for safe keeping until the deed is signed. The property sale must be officially registered with the governmental authority within four months of conclusion.

Legal Authorities

A Belgian solicitor or lawyer or notary must be used to draw written contracts for submission to the public notary.

Costs of Buying Real Estate

Property registration will incur a duty of 12.5% for land and buildings, and is payable by the purchaser. Value Added Tax is charged at 21% on buildings under two years old, with the same rate applicable for the renovation of old buildings. Notary fees will amount to between 0.1% and 0.5% of the value of the property. Value Added Tax is also applicable for foreign Real Estate investments at the relevant rate of their country.

Property Tax is payable on the deemed rental value of the property which is dependent on the location and use of the property as set in the "Cadastal Register". National rates are between 1.25% and 2.5% and municipal and provincial surcharges also apply.

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