Renting and buying property

Accommodation in Brussels is cheaper than in many big cities, but the Belgian system follows a different process to that of other countries. Here’s what you should know.

In Belgium, there are two common rental lease options: a standard flexible lease for a period between three and nine years, and a short-term lease for contracts up to three years. The nine-year lease allows the tenant to break the lease with three months’ notice (and payment of a penalty). The rent amount is fixed for nine years, apart from annual increases linked to the Belgian cost-of-living index. The short-term lease may be set for any period up to three years and may not be broken by either tenant or landlord. It may be renewed once only, up to a maximum of three years – for example, a one-year lease may be renewed with a two-year lease.

Deposits

The lease will require you to put down a deposit, normally equal to two months’ rent, against any damages cause to the property during your lease. On moving in, tenants are generally responsible for a detailed examination of the property, called an état des lieux/staat van het huis. Be sure to record all defects in the property so you don’t get charged for them when moving out.

If you want to renovate a rented place, it’s possible to draw up a ‘renovation lease’, where the landlord agrees to the transformations being made and pays the tenant by reducing the rent. It’s best to consult a lawyer or get legal advice while drawing up this contract.

Buying

Buying a home is another viable option if you plan on settling in Belgium on a permanent or semi-permanent basis. The first step is to find a notary, as they will need to spring into action the second you find your house. This is a legal requirement. It is typically the seller’s notary that drafts the sale agreement. This is a legally binding document for both the buyer and the seller. Upon signing, the buyer becomes responsible for the property, and therefore must insure it. At this time, a down payment is also required from the buyer (usually about 10 percent of the total cost). Closing follows within four months’ time.

The remainder of the money changes hands at this point. Unfortunately, the price agreed upon in the contract and the amount you end up paying can be quite different. As well as legal fees, most properties require a 12.5 percent registration tax be paid to the state. However, if you don’t own any other properties in Belgium, you are eligible for a rebate.

Mortgages

Mortgages can be fixed for the term of the loan, variable annually, or reviewed every three or five years, with options on the type of interest payment. The fairly common practice of using a mortgage broker can be helpful.

Renovation

If you settle on a property that needs renovation, familiarise yourself with the taxes and costs involved. While VAT on materials and services for renovations is typically about 21 percent, there is a 6 percent rate for the renovation of properties 15 years or older. Building a new home can be considerably more expensive, as a 12.5 percent tax is charged on the price of the land, and architect’s fees can be costly.