The Property Banks Buyers Guide to Belgium
Belgium has become more popular for foreign ownership recently due
to the head quarters of the E.U being based at Brussels. This has
resulted in rising property values, especially close to Brussels,
although less expensive property can be found in the countryside.
Main languages are French, Flemish and German.
Capital Gains tax is chargeable on all income from the sale of Real
Estate which includes non-resident companies and is liable at the
basic rate, which would be 40%.
There are no restrictions on Foreign Ownership.
Property And Real Estate Prices in Belgium
Range varies, for example:
From around £170,000 / $250,000 for a villa/house
From around £60,000 / $87,500 for a flat/apartment
From around £130,000 / $190,000 for a Maison de Maitre/Townhouse
Locations for buying property and real estate in Belgium
Antwerp is the largest Belgium city with a population of 500k.
Brussels is popular with governmental workers and Ixelles, to the
East, being popular for young commuters and residents. East and West
Brussels tend to have larger English speaking areas.
Living Costs in Belgium
Living standards are high in Belgium although bottled water is used
widely for drinking. Freehold property near to Brussels is generally
twice the price compared to the U.S equivalent property.
Buying property and real estate in Belgium
A sales agreement is binding from day one - the notary will issue a
deed which completes the sale but no mistake. Put your signature
under a sales agreement and you have to come up with the Euro - it
is often misunderstood that if you sign a sales agreement with a 10%
advance payment (common practice) that you can get out of it if your
loan isn't approved or that you only lose 10% if you don't go ahead
with the deed after all.
MAKE NO MISTAKE
- you are owner the moment you sign the sales agreement! If you
sent a proposal, the moment it has been counter signed by the seller
for agreed, you are officially the owner of the property.
All particularities, including loan approval, building or renovation
permits, etc, have to be mentioned as a suspensive condition in the
sales agreement. In such case it is also advisable to hand over the
advance payment to the notary, another common practice, who will
keep the money until the signature of the deed (which doesn't allow
any suspensive conditions).
The property transaction should always be officially registered with
the governmental authority within four months of conclusion.
Solicitor / Lawyer
A Belgian solicitor/lawyer or notary should be used to draw written
contracts for submission to the public notary.
Fees
The costs involved in buying real estate and property in Belgium are
generally quite high.
Property registration should incur duty of 12.5% for land and
buildings is payable by the buyer.
V.A.T is charged at 21% on buildings less than two years old with
the same rate applicable for the renovation of old buildings.
Notary fees will cost between 0.1-0.5% of the properties value.
V.A.T is also applicable for foreign Real Estate investments at the
relevant rate of their country.
Property Tax
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 1.25-2.5% and municipal and
provincial surcharges also apply.
Mortgages
Mortgages are available from various banking and mortgage providers.
Repayment terms and the rights of the mortgager will be agreed
within a written contract before a sale is agreed. Off shore
companies can be an advantage depending on current rates and
individual tax breaks.