You want to buy real estate in Belgium? Then you have come to the right place. However, before buying a property it is advisable to investigate the following aspects.In this article you will find a list of things to be considered when buying a property in Belgium. There are several important issues regarding the purchase of real estate in Belgium to consider.
Are there any legal areas I should take into account?
The Belgian law is different from many other laws because it is not based on case law but explicitly written down in statutory provisions . In practice an enormous number of texts exist which deal with all kinds of matters, ranging from judicial organization to nationality and marriage registration. The bottom line for foreigners who want to purchase real estate here is that they must comply with these rules or – more correctly – must make sure that they comply with them.
There are several important issues regarding the purchase of real estate in Belgium to consider.
How can I find out if there are any costs associated with the purchase?
Making an offer to buy is not enough, you will also have to pay some fees. It is possible to draw up a net contract of sale between the buyer and the seller but in most cases this is not allowed because it involves tax avoidance . You may think that you are losing money on your transaction but what about all these taxes you get right back? It can be more than 50% of your total purchase price! A proper transfer tax (around 6%) is charged by the notary public when transferring property in Belgium (https://www.bluehomes.com/Immobilien-Belgien/B/de/debut.html)..
My family will stay in Belgium for a while
What about the school for my children? If you are planning to stay here for more than 5 years, it is advisable to find out which schools are available in your neighborhood. It may be interesting to know that many Belgian parents send their children to international schools because they offer an education in English or other foreign languages . These private international schools are often located outside the cities and that may well contribute towards your decision not to purchase real estate near them.
Which additional costs will I have to pay after purchasing property in Belgium?
After buying a house you will also have some legal fees (around 12%) and registration fees (around 7% of the purchase price, including VAT at 21%) as well as other expenses related to the purchase, such as agency fees and renovation costs . It is advisable to take these additional costs into account when making your purchase offer.
I live abroad for a few months
So what about the annual property taxes (ONER)? The actual land assessment value of residential properties has been changed in Belgium from 1/1/2012. On July 16th 2014 this new method for assessing properties was implemented called “Forfaitaire rendement”. This signifies that properties are assessed based on their rental values over 20 years (and not 10 years as before). Thereby the taxable capital gains have increased dramatically. For example a house bought at 100 000 € will now have a taxable capital gain of 60 000 € whereas it would have been 36 000 € under the old system.6) I live abroad for a few months? Do I have to pay wealth tax on my property in Belgium?
No, you will not be taxed on your property if you are abroad more than 6 months of the year. But do keep in mind that this is only possible for six years after purchasing or building your house . Each sixth year thereafter it will become subject to taxation again unless you can prove that you don’t own any other real estate (apartment, cottage etc.).
How can I find out if there are any problems with my future home?
If you think everything has gone well so far, then maybe it’s time to take further and check out whether your future home has any problems. A lot of work can be done before you move in but it is also possible to check after having bought the property. The most common defects are related to construction . If there are cracks or leaks then this may indicate that there might be problems with the foundation of the house. That wouldn’t be very nice now, would it?
How do I solve possible disputes with my seller?
If something goes wrong during your purchase, you should first contact the seller and try to find a solution together . If that fails, mediation might be an option for solving any kind of dispute (for example regarding real estate).
