Published on and written by Cyril Jarnias
Buying, selling, or renting property in Belgium is not just a matter of price per square meter. Behind every transaction lies a tangle of federal, regional, and municipal rules affecting taxation, urban planning, energy, tenant rights, buyer protection, and even how a mortgage loan must be registered. Understanding this framework is no longer a luxury but a prerequisite for avoiding unpleasant surprises—whether you are a resident, an expatriate, or a foreign investor.
In Belgium, real estate regulation is divided among the federal state, the three regions (Flanders, Wallonia, Brussels-Capital), and the municipalities. It combines the Civil Code, regional urban planning and housing codes, as well as differentiated tax rules. Any real estate sale must be carried out by notarial deed.
A Fragmented but Highly Protective Legal Framework
Belgium remains a civil law country where the Civil Code structures property rights (ownership, usufruct, emphyteusis, right of superficies), contracts, and liability. Several books have been rewritten recently, notably to modernize real estate ownership, contractual obligations, and extra-contractual liability. At the same time, the regions have broad autonomy over everything related to urban planning, housing, energy, real estate taxation, and leases.
An agreement on the price and the property legally constitutes the sale, but it only becomes enforceable against third parties after the signing of a notarial deed and its transcription at the Legal Security Office. This transcription does not create the ownership right but makes it enforceable against everyone and allows for establishing the 30-year history of the property, which corresponds to the acquisitive prescription period.
The notary holds a central position. A hybrid profession – public officer and independent service provider – they are legally required for any property transfer or mortgage creation. Their fees are strictly set by royal decree and identical regardless of the office. Therefore, they cannot compete on price, only on service quality. They ensure the legal security of the transaction, verify titles, query registers, check zoning, charges, easements, technical and tax certificates, and then draft the authentic deed.
Buying a Property: Process, Costs, and the Notary’s Role
In practice, a property purchase follows a fairly similar pattern across the territory: written offer, preliminary sale agreement (or compromise), financing search, notarial deed, registration, and handover of keys. The total duration varies but is generally between 4 and 8 weeks from the accepted offer to finalization, although the law allows a maximum period of four months to sign the deed after the compromise.
The Preliminary Sale Agreement, a Binding Contract of Sale
After a written offer accepted by the seller, the parties sign a preliminary sale agreement. This multi-page document sets the price, payment terms, deed signing date, suspensive conditions (obtaining a loan, permit, etc.), guarantees, indemnity clauses, and attached documents (energy certificate, electrical inspection, zoning information, condominium regulations for an apartment, etc.).
Approximate percentage penalty applied in case of unilateral withdrawal from a promise of sale, unless suspensive conditions apply.
A deposit of approximately 10% is usually paid at the same time, but it must go through the notary’s or real estate agent’s escrow account, never directly to the seller. It remains blocked until the deed or the cancellation of the sale.
The Notarial Deed and Transcription
The authentic deed is signed at the notary chosen by the buyer (the seller can mandate their own, the two offices then share the fees without extra cost for the client). The deed records all obligations, finalizes the transfer of ownership, and serves as the basis for transcription in the mortgage register. All real estate deeds must be submitted for registration within two months.
The notary’s task is to calculate and pay, on behalf of the buyer, all duties and taxes related to the transaction, such as registration duties, VAT, stamp duties, and various administrative taxes. They also handle the property advertising formalities and the payment of the price to the seller, after deducting any debts or mortgages remaining to be cleared on the property.
Acquisition Costs: An Often Underestimated Item
Beyond the property price, the buyer must budget for costs typically ranging from 7.2% to 17.5% of the price, depending on the region, type of property (old or new), purpose (primary residence or investment), and financing structure.
Several major cost blocks can be distinguished, which vary slightly from one source to another but outline a consistent order of magnitude:
| Cost Type | Common Range or Rate | Synthetic Comment |
|---|---|---|
| Registration Duties (Existing) | 2–12.5% of price / market value | Highly regionalized |
| VAT (New) | 21% (6% or 12% in specific cases) | Replaces duties |
| Notary Fees | ≈ 0.2–4% (average around 1.6%) | Legal decreasing scale |
| Notary Administrative Fees | ≈ €800–€1,200 | Research and formalities |
| Credit / Mortgage Fees | ≈ 1–2% of the borrowed amount | Bank + duties + register |
| Mandatory Certificates and Inspections | ≈ €300–€600 (EPC, electricity…) | Varies by property |
| Recurring Taxes and Costs (Annual) | ≈ €500–€2,000 property tax for an average home | Excluding condominium charges |
For a new home, the bill can climb to nearly 22% of the price, mainly due to the 21% VAT on the building. In all three regions, purchasing a home within a condominium also incurs monthly charges between €50 and €150 for common area maintenance and funding a reserve fund, not counting special assessments for major work.
Registration Duties: Three Regions, Three Regimes
The registration duty – or transfer tax – is the major variable between Flanders, Wallonia, and Brussels. It applies to the agreed price or the market value if higher. Rates depend on the type of property, its use (primary residence or not), and sometimes the buyer’s profile.
| Region | Standard Rate (Existing) | Primary / Sole Residence | Notable Particularities |
|---|---|---|---|
| Flanders | 12% | 2% for sole residence, owner-occupied | Reduced rate replacing former regimes targeting energy performance |
| Wallonia | 12.5% | 3% for sole residence meeting certain conditions | Major reform of former allowances for “modest homes” |
| Brussels-Capital | 12.5% for all properties | Allowance: No duty on first €175,000 for property ≤ €500,000 | Potential savings up to €21,875 |
For second residences or investment properties, full rates – up to 12.5% – apply across the country. Specific regimes also exist for certain professionals, with reduced rates if they resell within a given period, as well as possibilities for partial refund in case of quick resale (e.g., repayment of part of the duty paid if resold within two years, with higher refund rates in Flanders and Wallonia than in Brussels).
For a new building, the standard VAT of 21% applies to the building. It can also apply to the land if the seller is the same and the sale is indivisible. Reduced rates of 6% or 12% are possible in specific cases (social housing, reconstruction of one’s own sole residence), but under strict conditions.
Financing and Mortgages: What Banks Require
Mortgage credit remains the primary financing tool for individuals. Belgian banks generally lend 80 to 90% of the price to solvent residents but are more restrictive for non-residents and foreigners without Belgian income, often reducing the loan-to-value ratio to 70–80%. Institutions examine the overall debt ratio, which in principle should not exceed one-third of gross income.
For a property purchase, loan terms generally extend from 25 to 30 years, potentially reaching 35 years for young, financially strong borrowers. Interest rates for non-residents are around 3 to 3.5% in mid-2025. Banks require a complete file including ID, pay stubs, employment contracts, tax returns, bank statements, preliminary sale agreement, and appraisal report. Self-employed individuals often must provide several years of income statements to prove the stability of their activity.
Beyond the interest rate, the borrower must account for specific costs related to the mortgage:
| Credit-Related Item | Range / Rate | Details |
|---|---|---|
| Bank Processing Fees | ≈ 1% of loan amount | Sometimes capped |
| Property Appraisal | ≈ €200–€300 + VAT | Mandatory for the bank |
| Mortgage Stamp Duty | 0.3% of mortgaged amount | State tax |
| Mortgage Registration | 1–1.25% of loan amount | Duties at the mortgage register |
| Fire Insurance | €250–€350/year for an average home | Effectively mandatory with a loan |
| Credit Life Insurance | ≈ 0.3–0.8% of outstanding balance / year | Required by most banks |
The mortgage is always created by notarial deed, which again generates deed and registry fees. Some banks use an “all-sums mortgage registration,” which secures not only the initial loan but also, potentially, other claims of the same institution against the borrower.
Annual Taxation: Property Tax and Other Levies
Once an owner, you are not free from the tax sphere. The main property tax is the real estate withholding tax (onroerende voorheffing). It is calculated not on actual rent but on a theoretical cadastral income, indexed yearly by a coefficient, then multiplied by regional, provincial, and municipal rates.
| Region | Regional Rate on Indexed Cadastral Income | Particularities |
|---|---|---|
| Flanders | 3.97% (before local surcharges) | Heavy weighting of local surcharges |
| Brussels & Wallonia | 1.25% (before surcharges) | Surcharges can bring the effective tax to 30–50% of cadastral income |
In practice, for a standard home, the annual bill often ranges between €500 and €2,000. Certain categories (modest homes, large families, disabled persons, listed buildings) may qualify for reductions or exemptions. In Brussels, offices are also subject to a specific tax based on surface area.
For companies, the real estate withholding tax is not recoverable but constitutes a deductible professional expense. Furthermore, registration duties, mortgage transfer taxes, and other acquisition costs are tax-deductible through amortization.
Zoning and Permits: What You Can (or Cannot) Do on a Property
In Belgium, no region gives carte blanche to build or transform a building. Spatial planning relies on an arsenal of strategic plans, zoning plans, and urban regulations, applied at several levels (regional, provincial, municipal). Each region has its own code: CoBAT in Brussels, CoDT in Wallonia, VCRO in Flanders.
Before buying land or a property to adapt, it is essential to check: the zone type (residential, economic activity, green zone, public facility), the existence of a detailed plan (PPAS, GRUP, sector plan), whether the property is listed in the heritage inventory, and applicable local rules (height, alignment, parking, dimensions, materials).
Generally, a zoning permit is required for:
– constructing a new building;
– significantly transforming an existing structure;
– changing the designated use (e.g., converting a business into a residence or vice versa);
– increasing the number of homes in a building;
– performing certain land work (excavation, filling, tree felling, subdivision…).
Some minor or pure maintenance works may be exempt from zoning permits. Precise conditions, such as certain interior renovations or limited professional use, are defined by regional regulations. In Brussels, the complete list of acts subject to or exempt from permits is available in the Brussels Code of Territorial Planning (CoBAT) and a specific exemption decree.
Zoning violations – work done without a permit or outside its conditions – are not mere trifles. They can lead to heavy administrative fines (up to €150,000 in Brussels), orders to restore the original state, or even demolition, and significantly complicate the sale of the property. There are regularization procedures, more or less burdensome depending on the nature and age of the violation, but success is not guaranteed: compliance with current rules and the notion of “proper territorial planning” remain decisive.
Leases: A Largely Regional Law Rather Favorable to Tenants
The Belgian rental market is regulated by a patchwork of rules where, for some old leases, the old federal law on rents still coexists with, for recent leases, separate regional requirements in Flanders, Wallonia, and Brussels. Despite these differences, several constants emerge.
The Lease Agreement: Written, Detailed, and Registered
A verbal lease is not invalid under Belgian law, but it is strongly discouraged. A written agreement is the norm and required by law for residential leases. The contract must specify at minimum the parties’ identities, property address, rent, payment frequency, duration, charges, and each party’s obligations.
This lease must then be registered with the competent Legal Security Office within two months. For a primary residence lease, this registration is free, but it is not optional: if forgotten, the tenant can terminate without notice or indemnity. Registration also protects the parties in case of property sale: a registered lease is binding on the buyer.
The standard residential lease is for nine years and applies automatically. There are also short-term leases (six months to three years) and specific leases (for students, social housing, or cohabitation). The nine-year lease tacitly renews for three-year periods unless terminated according to the rules.
Rent, Indexation, and Guarantees
The starting rent amount is freely agreed between landlord and tenant. Subsequently, annual indexation is possible, but only according to a regulated formula based on the health index (sub-index of the consumer price index). The indexation clause must be provided for in the lease, and the landlord must notify the increase in writing, respecting a notice period.
Temporary indexation freezes were recently introduced for the most energy-inefficient homes, then lifted, with the introduction of corrective mechanisms: in Flanders and Brussels, a correction factor reduces indexation for the worst energy classes; in Wallonia, a specific formula applies for classes D to G.
The rental guarantee is strictly regulated: it cannot exceed two months’ rent if deposited in a blocked account in the tenant’s name. Cash payment to the landlord is prohibited. An alternative is a bank guarantee of up to three months’ rent, repayable over several years. Personal guarantees from relatives have been largely abolished, except for student leases.
Percentage of the monthly rent that can be claimed as a penalty per month of delay if the landlord delays returning the security deposit without legitimate reason.
Long-term leases (more than nine years) must be executed before a notary and transcribed in the mortgage register. Classic commercial leases, heavily regulated by a specific law, follow their own rules (minimum nine-year term, renewal possibility, three-year termination rights, etc.).
Rights and Obligations of the Parties
The landlord must provide a “habitable” dwelling, compliant with minimum standards of health, safety, and hygiene (safe electrical installation, heating, ventilation, potable water, sufficient space and lighting…). They are responsible for major repairs and those due to normal wear and tear or inherent defects. The tenant, for their part, is responsible for minor repairs, routine maintenance, and damage they cause.
A detailed condition report, ideally illustrated with photos, is mandatory and must be completed no later than the first month of occupancy. It allows comparison of the exit state with the entry state and determines the potential attribution of damage to the tenant.
The landlord must provide a valid energy performance certificate (PEB/EPC) before lease signing, as well as respect the tenant’s privacy. They cannot enter the dwelling without consent, except in cases of manifest emergency.
The tenant has the right to peaceful enjoyment of the dwelling, respect for their private life, and protection against any discrimination (origin, sex, sexual orientation, religion, nationality…). In case of dispute, they can petition the justice of the peace, competent in rental matters, or seek help and advice from a tenants’ association.
Notice Periods, Early Termination, and Evictions
For a nine-year lease, the tenant can generally leave at any time with a three-month notice period. An indemnity is due only if they terminate the lease during the first three years (three, two, or one month’s rent depending on whether they leave in the first, second, or third year).
The landlord, however, can terminate only for reasons exhaustively provided by law: personal occupancy or occupancy by a close relative, major work, or, after a certain period, without reason but with a long notice period and substantial indemnity (up to nine months’ rent depending on timing). For short-term leases, conditions vary by region.
Eviction, finally, can never be a private act. It requires a court decision and the intervention of a bailiff. Courts generally only intervene when several months of rent are unpaid. In Brussels, a winter moratorium prohibits evictions between November 1 and March 15, with exceptions (danger, relocation offer, force majeure…). This regime has, moreover, sparked debate on its compatibility with property rights, hinting at possible future adjustments.
Energy Performance and EPC/PEB Certificates: A Mandatory Step
Driven by European directives, Belgium has established a comprehensive system of energy certification for buildings, implemented differently in each region. Forgetting this aspect during a sale or rental is now practically impossible: the property listing must mention the energy score, and the certificate must be given to the buyer or tenant.
Flanders: An Advanced System and Frequent Controls
In Flanders, the EPC certificate is mandatory for each housing or office unit concerned and must be issued by an accredited expert. It displays an energy label from A+ (excellent performance) to F (very poor) and a score in kWh/m².year, accompanied by improvement recommendations. The control authority, the Flemish Energy and Climate Agency (VEKA), conducts random inspections and sanctions breaches with fines between €500 and €5,000, without exempting from obtaining the missing certificate.
Since 2019, only recently established Energy Performance Certificates (EPCs) for existing buildings are valid for a sale. A new certificate is mandatory when significant work alters the property’s energy performance. Furthermore, beyond a certain renovation level or for certain categories of non-residential buildings (like offices or shops), additional obligations to upgrade energy performance within five years apply to new owners or certain long-term lessees.
Brussels-Capital: PEB Certificate and Heavy Sanctions
The Brussels-Capital Region has chosen a similar system, the PEB certificate (Energy Performance of Buildings), mandatory for any sale or rental of a dwelling over 18 m² and offices over 500 m². The energy label ranges from A++ to G. The certificate is valid for ten years, unless the building’s energy profile changes.
Listings must indicate the energy class, and the certificate must be made available to candidates upon request. During a sale, the certificate number, class, and expiry date must be in the deed, with the original given to the buyer. During a rental, a copy of the PEB must be given to the lessee, who acknowledges receipt in the lease.
Non-compliance with these obligations is not trivial: the regulations provide for fines from €25 to €25,000, possibly accompanied by imprisonment in case of serious offense. Controls specifically check that advertisements mention energy data and that certificates are actually provided.
Wallonia: Toward Nearly Zero-Energy Buildings
In Wallonia, the PEB certificate also exists and is accompanied by very ambitious standards for new or heavily renovated buildings. The Q-ZEN standard imposes, for new constructions, a maximum specific consumption (Espec) of 85 kWh/m².year, combined with an overall energy performance level corresponding to a label A.
For transactions, the certificate must be established before the listing is published and attached to deeds or contracts. Detailed requirements evolve regularly, but the trend is toward tightening thresholds in all three regions, with a direct impact on the market value of the most energy-inefficient properties and on rent indexation.
Taxation on Resale: More or Less Heavy Depending on Profile
When reselling a property, the question of capital gains taxation arises. In Belgium, the logic clearly distinguishes individuals from companies.
Tax rate on capital gains for a secondary residence or investment property resold within five years.
For companies, however, any real estate capital gain is part of the taxable profit subject to corporate income tax at the standard rate of 25% (or a more favorable rate for small companies on the first bracket of profit). Regimes for spreading out taxation are sometimes possible if reinvesting in depreciable assets.
Investment Strategies and Legal Structures
Real estate investment in Belgium can take different forms, from simple direct purchase by an individual to structures via companies, funds, or specialized vehicles (REIT, SREIF, FIIS/GVBF…). Foreigners are in principle subject to no restrictions on land ownership – neither in terms of nationality, nor number or type of properties – but some investments in sensitive sectors may be subject to screening under the European foreign direct investment control mechanism.
For an individual, direct purchase is the simplest solution. For professional or wealth management investors, creating a company (SRL/BV or SA/NV) allows for tax optimization (interest deduction, amortization, deduction of registration duties). However, this structure is subject to corporate taxation on capital gains and rental income.
Regulated vehicles like regulated real estate companies (B‑REIT, SREIF, FIIS/GVBF) benefit from specific regimes: obligations to distribute a large portion of income, particular taxation (exit tax, subscription tax…), access restricted to certain investor types, but great flexibility for pooling real estate portfolios and accessing capital markets.
A System Designed for Legal Security… Provided You Prepare
The Belgian real estate landscape is characterized by a high level of protection for the parties, particularly buyers and tenants. The mandatory involvement of a notary, the systematic transcription of property rights, the centralization of searches (zoning, mortgages, charges, soil pollution), the regulation of rent indexation, and the oversight of rental guarantees constitute multiple safeguards against the most flagrant abuses.
A real estate project involves complex costs and rules that vary by region. You must budget for registration duties, VAT on new builds, property tax, deed fees, and energy charges. Furthermore, regulations differ based on situations (renovation without a permit, co-housing in Brussels, major renovation in Wallonia), requiring meticulous preparation and good information to avoid financial pitfalls.
For non-residents, an essential point must be remembered: becoming a property owner in Belgium does not grant any automatic right to residence or nationality. Residence permits, permanent residency, or naturalization follow specific rules, independent of real estate investments.
In practice, the best protection is anticipation: consult a notary from the purchase offer stage, inform yourself about the applicable regional regime (zoning, housing, taxation), verify the property’s cadastral and zoning situation, seriously consider its energy score, and, in case of rental, understand the precise implications of the type of lease signed. In an environment where reforms follow one another – reduction of registration duties on primary residences, new energy obligations, evolution of lease law – real estate is no longer a completely “passive” refuge. It is an investment that must be managed, legally and fiscally, over the long term.
A French business owner around 50 years old, with a financial portfolio already well-structured in Europe, wanted to diversify part of his capital into residential real estate in Belgium to seek rental yield and exposure to a stable eurozone market. Allocated budget: €400,000 to €600,000, without borrowing.
After analyzing several markets (Brussels, Antwerp, Ghent), the chosen strategy consisted of targeting an apartment or a small rental building in a dynamic neighborhood, combining target gross rental yield of 5 to 6% – “the higher the yield, the greater the risk” – and medium-term appreciation potential, with an overall ticket (acquisition + fees + potential light renovations) of around €500,000.
The mission included: selection of the city and neighborhood, connection and handling by a local network (real estate agent, notary, tax specialist), choice of the most suitable structure (direct ownership or via a Belgian company), and definition of a wealth diversification plan over time.
This type of support allows one to benefit from the opportunities of the Belgian market while controlling legal, tax, and rental risks.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
