Buying a House or Property in Belgium

There are no restrictions on foreigners who wish to buy property in Belgium.

Belgium has two official languages – Dutch and French (plus a small German speaking area). Most professionals in Brussels speak both, and often English as well.

Belgium is a federal state with three regions: Brussels, Flanders and Wallonia. According to the issue in question, that can mean four legal codes. The legal system is based historically on the "code Napoléon" and in some respects is quite close to the French system.

The Markets

The main property markets are:

Brussels

The capital city of Belgium and seat of the European Commission. The housing stock includes a large number of town houses. In the green belt of the Region there are even many villas and some estates. The region is made up of 19 municipalities (gemeenten/communes).

New projects of urban villages are growing in the immediate outskirts of the city. Land prices are currently much higher than the rest of Belgium.

The periphery

• Flemish Brabant: Overijse, Tervuren, Crainhem, Rhode-Saint-Genèse, with many villas

• Walloon Brabant: Waterloo, Lasne, Ohain, Braine l'Alleud with houses and also apartment buildings and the University of Louvain-la-Neuve

The seaside

One of the most famous towns is Knokke-le-Zoute, with famous villas and the Zwin. There are many other towns and villages and the famous city of Ostend.

The Parties Involved in the Process

The seller

In the secondary market, most sellers of existing homes are individuals: there are few institutional owners of apartments and houses. Developers of new dwellings are often also builders.

The buyer

This is either a private person or a property management agency (SPV) (quite common for large estates).

The Contracts

The buying process may involve different steps:

• Some agents and owners ask the buyer to sign a commitment to buy (Koopintenties or Aankoopaanbod/Offre d'achat): that means that the buyer is engaged, but not the seller
• An option gives the buyer the right to buy without any commitment, except if it is a paying option

• The purchase agreement (Verkoopcompromis/compromis de vente): the sale is closed, except if the buyer asks that the contract is subject to financing (that gives usually one or two months to confirm the deal). This is common

• It is usual to pay 5-10% of the price at this stage as a deposit, but the amount is blocked by the notaries and not given to the seller until a notarised deed of sale (notariële akte/acte notarié) is signed. Special regulations apply to apartments and houses that are still being built in order to protect the buyer during the works

• The official deed of sale must be signed by the parties and the notary within four months after the purchase agreement

• Depending on the Region, some special analyses and documents might be required (soil pollution analysis for instance)

• Some buildings and sites are listed and protected. This limits the possibilities for alterations but sometimes allows the building to qualify for special subsidies for renovation. Further information is available from the Regions and municipalities

Let-out Clauses

Buyers who sign an exclusive purchase option/commitment to buy (Koopintenties or Aankoopaanbod/Offre d'achat), can back out before signing the purchase agreement (Verkoopcompromis/compromis de vente) but will lose any fee paid to reserve the property.

The purchase agreement is the definitive agreement for the sale. Once signed, it is not possible to back out or change any of the terms. The notarised deed of sale (notariële akte/acte notarié) is a registration of the sale. In theory, therefore, there is no let-out clause.

However, it is possible to have a suspensive clause in the contract that makes it conditional on the buyer being given a mortgage (other conditions are also possible). This might allow compensation to the seller, but the two parties are free to choose terms.

It is also possible to cancel the contract, but this is a procedure that can involve loss of registration fees or, to avoid this, court intervention or formal arbitration. 

Arbitration

When buying, it is possible to put an arbitration clause in the contract so that problems can be resolved without going to court. Arbitration can be in English, if both parties and the arbitrator agree. Translators are also allowed to be present to help the parties.

• Chambre d'Arbitrage et de Médiation 
  Tel: 02 511 39 90 
  Fax: 02 513 63 29 
  e-mail
  Website

Real Estate Agents

They must be members of the Professional Institute of Real Estate Agents (Beroepsinstituut van Vastgoedmakelaars/Institut des Professions Immobilières – BIV/IPI). Most are locals and act within a Region (plus the periphery for the Brussels area) or in a specific city or area. The fees are usually paid by the sellers (3% + VAT).

Expert (valuers)

The mortgage companies may require a survey of the value of the property by an expert valuer. The buyer must pay the fees for this and the expert must be approved by the financial company involved on the mortgage application.

This is not the same as the survey carried out under the British or American system and does not always alert the buyer to potential problems with the building. The value assessed is often the replacement value or forced sale value rather than the market value.

The Cost of Buying a Property

The registration fees (transfer taxes) or VAT

The registration fees (droit d'enregistremenr/registratierecht) are decided and collected by the Regions. They are currently at 12.50% of the sale price in Brussels and Wallonia and at 10% in Flanders. Some specific and quite sophisticated systems exist in the regions to encourage property purchase in some specific cases to reduce this level.

VAT is charged on new constructions only. This is sometimes also charged in case of major renovations carried out by the seller on old buildings (for example conversion to flats). In such a case, a registration fee is due on the land and VAT on the construction.

Note: Check the level of finishing - some apartments (especially in renovation projects) are sold on a "shell and core" basis.

Notary's fees

These are fixed by law and depend on the value of the purchase.

• The Belgian Notaries website has a simulator of fees: Click here (in French)

Capital Gains Tax

No capital gains tax applies for individuals if the property is sold after five years.

Mortgages

The mortgage system (Hypothecair Krediet/Crédit Hypothécaire) is very efficient, reliable and sophisticated: it is possible to find good standard products as well as tailor-made financing. Government-subsidised mortgages are also available for people on very low incomes.

Further information

• Belgian Federal site (under 'Citizens' then 'Find accomodation')
• The Brussels Regional site for renovation grants  (Dutch & French)
• Professional Association of credit brokers 
• Royal Federation of Expert Surveyors
• Belgian Chamber of Property Experts 

• Federation of Independent Expert Surveyors 
  At: Brusselsesteenweg 65/1, 1500 Halle 
  Tel: 02 356 81 07

• The Royal Federation of Belgian Notaries 
• Chamber of Arbitrage and Mediation provides a selection of model contracts for those buying property in Belgium

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Prepared by Christian Lasserre, Independent Mortgage Broker, Lasserre & Associées, 
Avenue Louise 371 – bte 21, 1050 Brussels
Tel: 02 648 19 60, Fax: 02 648 41 08,  www.lasserre.be