How to buy property in Belgium
International buyers do not face any restrictions when it comes to property purchases in Belgium.
Non-residents have a different tax status to people who live in the country permanently, and transaction costs are generally perceived as higher than many other European countries.
Expats are able to finance purchases with a mortgage, although deposits of at least 10 per cent are usually required.
The buying process
Once a buyer has identified a property, it’s common for a formal offer to be made in writing, something a real estate agent can assist with.
When the seller accepts the offer, a commitment to buy contract, or offre d’achat/koopintenties, must be signed which ties the buyer to the sale legally and should lead to the sale being completed.
A notary must be hired to draw up the deeds, and can provide legal representation too, although a solicitor can be hired.
A survey is recommended, and these are usually compulsory as part of a mortgage approval process.
Most contracts in Belgium are in French or Dutch, meaning hiring an agent with translation skills can be an advantage and removes the need for separate services to be acquired.
Once the contract is signed, the buyer and seller are tied into the sale no other parties can become involved. At this point a deposit of 10 per cent is put into escrow and will be forfeited if the buyer pulls out.
The sale must be registered with the registry office within four months of completion.
Fees and charges
Total fees can reach as high as 21 per cent for new-builds due to different tax rates.
Registration taxes for properties older than 2 years can be up to 12.5 per cent depending on the region, while a 21 per cent VAT is charged on properties less than 2 years old instead.
Notary fees typically range between 0.2 per cent – 0.4 per cent, with valuation costs normally €200 plus VAT.
The majority of the estate agent fees are usually paid by the seller, and are approximately 3 per cent of the property cost plus VAT.
Some homeowners qualify for tax breaks, however, it is worth remembering that even for owner-occupied properties, an annual tax on the estimated rental value must be paid. This is usually equivalent to between 1-2 months’ worth of rent, depending on the region.
Property owners seeking to list their home shortly after purchasing it should note that private residences are always exempt from capital gains taxes as long as they have been occupied for at least 12 months.
If you have any further questions, please consult our buying guide or feel free to contact us and we can provide you with any information you need.