Property purchases in Belgium are open to anybody from anywhere in the world. Transaction expenses are often seen as greater than in many other European nations, and non-residents have a different tax status than permanent residents.
Mortgages are available to international buyers, albeit a 10% down payment is generally required.
Purchase procedure
Once a prospective buyer has settled on a particular piece of real estate, he or she will likely make a formal written offer, which is something a real estate agent may help with.
A commitment to purchase contract (offre d’achat/koopintenties) must be signed once an offer is accepted by the seller; this legally binds the buyer to the transaction and should result in its conclusion. The documents must be drawn out by a notary public who can also act as legal counsel, however a lawyer can be retained if desired.
A survey is strongly suggested and is typically required prior to approving a mortgage. Since most contracts in Belgium are written in either French or Dutch, using an agent who is fluent in both languages might be useful and eliminate the need to obtain additional services.
Buyer and seller are legally bound to the agreement after the contract is signed. If the buyer backs out now, they lose the 10% deposit they put into escrow.
Within four months after the sale’s closing, the transaction must be recorded at the appropriate registrar.
Costs and expenses
Because of varying tax rates, total costs for new construction might go as high as 21 percent.
Properties less than two years old are subject to a VAT of 21%, whereas properties older than two years are subject to a registration tax of up to 12.5% depending on the location.
The average cost of a valuation is €200 plus VAT, while notary fees range from 0.2% to 0.4% of the purchase price.
The majority of the real estate agency costs, which average about 3 percent of the sale price of the property plus VAT, are covered by the seller.
While there are exemptions available to certain homeowners, it’s important to keep in mind that even for homes that are used exclusively by their owners, a yearly tax on the property’s assessed rental value is still required. Depending on the cost of living in your area, this might be anywhere from one to two months’ rent.
For those thinking of selling their property soon after acquiring it, the fact that primary or secondary homes are always free from capital gains taxes after being occupied for at least 12 months is good news.
We encourage you to read our buying guide or get in touch with us directly if you need any more clarification. Contact us today to buy or sell property in Belgium fast online.
