Authored by the expert who managed and guided the team behind the Belgium Property Pack
Everything you need to know before buying real estate is included in our Belgium Property Pack
Are you considering investing in Belgium’s real estate market? What are the legal steps, tax implications, and cultural differences you need to understand before taking the plunge? What challenges do foreign investors typically face, and how can you overcome them?
These are the questions we hear most often from foreign investors because we’re actively connected to this market. We’ve spent time working with local agents, developers, and investors, so we know what works—and what doesn’t. That’s why we’ve written this article: to provide a clear guide that answers the questions we get asked daily.
Our goal is to help you, as a foreigner, to navigate the property buying process with confidence. If you think there’s something we missed or want more details, let us know (please do!). Your input helps us refine and improve our advice for everyone.
How this content was created 🔎📝
1) Keep in mind the Belgian preference for buying over renting when investing in rental properties
Belgians have a strong cultural inclination towards home ownership, which significantly influences the demand for rental properties in certain areas.
In Belgium, about 71.3% of people own their homes, which is higher than the European Union average. This means fewer folks are looking to rent, impacting the rental market. The saying "every Belgian is born with a brick in their stomach" captures this deep-seated desire to own a home, leading to well-kept properties and neighborhoods.
Government initiatives sweeten the deal for buyers. For instance, the integrated housing bonus offers a 40% tax benefit on capital repayments, interest, and premiums for a balance insurance policy. This makes owning a home even more appealing financially.
Belgians often prefer to buy rather than rent, which can affect the demand for rental properties in certain areas. This trend is particularly notable in cities like Brussels and Antwerp, where the rental market can be tight due to high homeownership rates.
In some regions, the preference for buying over renting is so strong that it shapes the local real estate landscape. This cultural norm means that rental properties might be less available, but it also ensures that neighborhoods are well-maintained and stable.
Sources: KBC Newsroom, Deliver1, Euroconstruct
2) Consider properties with historical or architectural significance in Belgium, as they appeal to local buyers due to the strong homeownership tradition
In Belgium, 71.90% of people own their homes, reflecting a long-standing cultural preference for homeownership.
This tradition is not just a recent trend; historical data shows a steady homeownership rate of around 72.13% over the past two decades. It's a deeply ingrained value, especially appealing to those who appreciate the stability and personal investment of owning a home.
For those interested in properties with a bit of history, Belgium offers a unique market. Cities like Brussels and Antwerp are hotspots, where historical architecture draws consistent interest. The government sweetens the deal with incentives like grants for maintaining protected monuments, making these properties even more enticing.
Real estate experts often point out that historical properties tend to hold or even increase in value due to their unique charm. In 2023, while new-build homes saw a price rise of 3.4%, historical homes often fetched even higher prices, especially in neighborhoods known for their architectural heritage.
Buyers are not just paying for a home; they're investing in a piece of history. Testimonials from real estate agents reveal that many are willing to pay a premium for these unique properties, valuing their character and the stories they hold.
Sources: Home Ownership Rate in Belgium, Financial Incentives for Historical Preservation, Property Index 2024
We have made this infographic to give you a quick and clear snapshot of the property market in Belgium. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) Consider areas near new infrastructure projects in Belgium to maximize property value growth
Investing in properties near new infrastructure projects in Belgium is a smart way to maximize your profit.
When the National Railway Company of Belgium (SNCB) invests in rail infrastructure, it often leads to increased property values in nearby areas. This is because improved accessibility makes these properties more attractive to buyers and investors. For example, cities like Brussels and Antwerp have seen significant boosts in property values due to such developments.
In the past, the expansion of railway lines in these cities has improved transportation links, making them more desirable places to live and work. As a result, those who bought properties early in these areas have enjoyed a good return on investment. This trend is not just limited to major cities; smaller towns connected by new infrastructure also benefit.
Market research from CBRE highlights that new infrastructure projects can drive up property values by increasing demand. Their studies show how these projects impact local traffic and accessibility, which are key factors influencing property prices. This was evident in 2023 and 2024, and the trend is expected to continue as Belgium invests in its transport and renewable energy sectors.
Insider knowledge suggests that areas near upcoming projects, like new train stations or highway expansions, are worth watching. These projects often lead to rising property values as they enhance connectivity and convenience for residents. Investors who keep an eye on these developments can make strategic purchases before prices climb.
Belgium's focus on infrastructure is not just about transport; renewable energy projects are also on the rise. These initiatives can make nearby properties more appealing, as they often come with improved amenities and environmental benefits. This means that investing in such areas can be a way to capitalize on future growth.
Sources: PR Newswire, CBRE, Colliers Belgium
4) Understand Belgium’s market cycles, as the property market experiences distinct growth and stagnation periods
Buying property in Belgium can be a smart move if you know the market cycles.
In recent years, the Belgian property market has shown its cyclical nature. For example, in 2023, the house price index barely moved, with only a 1.15% increase in the first three quarters. This period of stagnation is typical, but it sets the stage for potential growth. Looking ahead, experts predict a 3% growth in 2025, thanks to stable mortgage rates and a housing shortage.
Understanding these cycles can help you make the most of your investment. When the market is slow, like in 2023, it might be the perfect time to buy. You could snag a property at a lower price before the market heats up again. This strategy is backed by reports from real estate agencies like Deloitte and Colliers, which highlight the market's resilience despite challenges like rising interest rates.
Belgium's property market has a history of bouncing back. Even when interest rates rise, the market shows strength. This resilience means that during slower periods, there are often hidden opportunities. If you can spot these, you might find yourself ahead of the curve when the market rebounds.
Local insights can be invaluable. For instance, certain areas might experience growth sooner than others. By keeping an eye on local trends, you can make informed decisions about where and when to invest. This insider knowledge can give you a competitive edge.
So, if you're considering buying property in Belgium, remember that timing is everything. By understanding the market's cyclical nature, you can position yourself to make the most of your investment.
Sources: ING Think, Deloitte Property Index 2024, Colliers Belgium Analysis
5) Consider properties adaptable for co-housing and shared living, as these are becoming popular in urban areas
Co-housing and shared living spaces are becoming increasingly popular, especially in urban areas.
This trend is largely driven by the need for affordable housing, particularly among younger people who crave community-oriented living. In Belgium, for example, Brussels has introduced a municipal tax on co-living houses, highlighting the growing popularity of this concept despite some concerns about its impact on neighborhoods.
Belgian cities are seeing more co-housing projects, further supporting this trend. A standout example is the CURANT-project, which aims to create 75 co-housing units. These units provide a safe living environment and integration support for unaccompanied young adult refugees, who share the space with Flemish buddies. This setup offers guidance in job search and language learning, fostering a supportive community.
Real estate market reports show a shift towards adaptable living spaces, aligning with the co-housing concept. Even with a slowdown in the Belgian housing market, there's still noticeable interest in residential property investments. For instance, new dwelling prices increased by 5.05% in Q3 2023, suggesting that properties adaptable for co-housing could be a smart investment.
Investors can leverage this trend by focusing on properties that can be easily adapted for shared living. Such properties are gaining traction in urban areas, where the demand for community-oriented and affordable housing is on the rise.
By investing in adaptable properties, you can tap into the growing market of co-housing and shared living spaces. This approach not only meets the demand for affordable housing but also fosters a sense of community among residents.
Sources: Global Property Guide, The Brussels Times, Shape Affordable Housing
Get to know the market before you buy a property in Belgium
Better information leads to better decisions. Get all the data you need before investing a large amount of money. Download our guide.
6) Consider buy-to-let properties in Belgium’s strong rental market, especially in cities like Brussels and Antwerp
You might find it surprising that Belgium has a strong rental market, especially in cities like Brussels and Antwerp, making buy-to-let properties a viable investment.
Despite some challenges in the property market, the demand for rentals in Belgium remains robust. In 2023 and 2024, there was a noticeable drop in new rental contracts in Flanders and Brussels. This might seem like a red flag, but it actually highlights a high level of existing demand. Fewer new contracts are needed because many properties are already occupied.
Brussels, in particular, is feeling the pressure from a growing expatriate community. This influx of newcomers is driving up demand, and the city is struggling to keep up due to its urban constraints. Limited opportunities for expanding housing supply make it tough to meet the needs of this diverse population.
Rental yields in these cities are quite appealing. In the first quarter of 2024, gross rental yields for apartments in Brussels ranged from 4.98% to 5.96%, with an average of 5.54%. Antwerp isn't far behind, offering yields from 3.27% to 5.52%, averaging 4.73%. These numbers suggest that investing in buy-to-let properties could be a smart move.
For those considering an investment, it's worth noting that the rental market's strength is partly due to the expatriate influx. This trend is expected to continue, keeping demand high and potentially increasing rental prices. The urban landscape of Brussels, with its limited space for new developments, adds another layer of complexity to the housing market.
In summary, while the property market in Belgium faces its challenges, the rental sector, especially in cities like Brussels and Antwerp, offers promising opportunities. With attractive rental yields and a steady demand driven by expatriates, buy-to-let properties remain a viable investment.
Sources: Belga News Agency, eSales International, Global Property Guide
In this video, we can see that Brussels has a vibrant rental market, with diverse housing options catering to professionals and families, confirming the strong demand for rental properties.
7) Avoid properties in Belgium with unclear ownership titles, as fixing these issues can be expensive and slow
In Belgium, buying a property with unclear ownership titles can be a real hassle.
If you end up with such a property, you might face a legal battle lasting several years. Imagine planning to sell or use your new place, only to be stuck in court. This happened to a buyer in the Flemish region in 2023, who found themselves in a dispute that dragged on for over two years, costing them dearly in legal fees and missed opportunities.
Legal costs can be steep, often reaching 10% to 15% of the claim value. This can significantly impact your investment, turning what seemed like a good deal into a financial burden.
Belgian property laws are complex, governed by both federal and regional legislation, which can lead to inconsistencies and complications. This dual framework makes resolving title disputes even more challenging, as pointed out by legal experts.
In 2023 and 2024, first-instance proceedings typically took one to two years, and if you had to appeal, it could stretch up to three years. This lengthy process is a major reason why it's crucial to avoid properties with unclear ownership titles.
To navigate these challenges, it's wise to consult with a local expert who understands the intricacies of Belgian property law. They can help you avoid potential pitfalls and ensure your investment is secure.
Sources: Allianz Trade, Lydian, Chambers
8) Be prepared for high transaction costs in Belgium, as registration and notary fees can significantly affect your budget
Belgium's property transaction costs are surprisingly high, with registration fees ranging from 6% to 12.5% of the property's value.
Compared to other European countries, Belgium's fees are quite steep. For instance, in France, registration fees hover around 7.5%, while in Italy, they range from 2% to 7%. This makes Belgium's fees stand out.
Notary fees in Belgium add another layer of expense, averaging about 1% of the sale price. And don't forget the administrative costs and a hefty 21% VAT on top of that.
All these costs combined mean that total transaction costs in Belgium can range from 10.2% to 22.5% of the property's value. This is notably higher than in France, where costs are around 12.5%, or Italy, where they range from 10% to 15%.
Sources: Global Property Guide, Hypotheekwinkel.be
We made this infographic to show you how property prices in Belgium compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
9) Understand Belgium’s “three-region” system, as Flanders, Wallonia, and Brussels have distinct property laws and taxes for a strategic advantage
Belgium's property market is shaped by its unique "three-region" system, which includes Flanders, Wallonia, and Brussels.
Each region has its own property laws and taxes, so understanding these differences can be a game-changer. For example, in Flanders, families with children enjoy tax reductions, while in Brussels, the tax reduction is a percentage of the total tax. Knowing these specifics can help you save a significant amount of money when buying property.
Registration fees and renovation incentives also vary. Flanders offers lower fees for energy-efficient renovations, making it attractive for eco-conscious buyers. Meanwhile, Brussels provides a unique exemption for first-time homebuyers, which can be a big financial relief.
These regional policies are not just bureaucratic details; they are crucial for making informed decisions. For instance, if you're planning to renovate, Flanders might be your best bet due to its incentives for energy efficiency.
Understanding these regional differences can give you a strategic edge in the property market. Whether you're a first-time buyer or looking to invest, knowing where you can get the best tax breaks or incentives is invaluable.
Sources: hypotheek.winkel, propertyone.be, u4unity.eu
In this video, we can see that the three-region system in Belgium leads to varied property laws and taxes. This highlights the importance of tailoring investment strategies to regional regulations.
10) Avoid properties in areas with strict zoning laws, as they may restrict renovations or expansions
Thinking about buying a property? Consider how strict zoning laws might affect your plans.
In Belgium, for instance, these laws can be quite restrictive. They dictate what you can and can't do with your property. So, if you're dreaming of a big renovation, you might hit a wall. Many Belgian municipalities have denied renovation permits in recent years, leaving homeowners stuck with their original layouts.
Imagine having a fantastic idea to boost your home's value, only to find out you can't get the green light. This isn't just a minor inconvenience; it can lead to financial setbacks if you were banking on those upgrades to increase your property's worth.
Property owners in Belgium have voiced their frustration. They feel these laws are too tight, limiting their ability to enhance their homes. This sentiment is shared by real estate agents who struggle to sell properties in these areas. Potential buyers are often hesitant because of the restrictions.
It's not just about personal dissatisfaction. These zoning laws can also impact the broader real estate market. When people can't improve their properties, it can slow down the appreciation of property values in the area. This can make the market less attractive to both buyers and investors.
So, if you're eyeing a property in a region with strict zoning laws, be sure to do your homework. Understand what you can and can't do with the property before making a decision. Being informed can save you from future headaches.
Sources: Real Estate 2024 - Belgium, Belgian Real Estate Market Insights 2023, Planning/zoning issues in Belgium
11) Be patient during Belgium's lengthy property negotiations, as it can lead to better deals
Buying a property in Belgium often requires patience and strong negotiation skills.
In recent years, homes in Belgium have taken an average of 43-46 days to sell. This means the market can be quite competitive, with some properties attracting multiple offers, which naturally stretches out the negotiation period.
Real estate agents stress the importance of patience because negotiations often involve complex legal and regulatory aspects. Rushing through these can lead to less favorable outcomes, so taking your time is key.
The Belgian housing market has slowed down due to rising interest rates and economic stagnation. This slowdown has made the market more competitive, potentially offering better deals for those who wait.
Interestingly, the house price index in Belgium has been relatively stable. This stability can make it easier for buyers to negotiate better prices, as there are fewer dramatic price fluctuations.
Sources: Global Property Guide, Redfin, Arab MLS
Buying real estate in Belgiumcan be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
12) Focus on energy-efficient properties in Belgium, as they can command higher rents and resale values
In Belgium, energy efficiency is now a big deal in the real estate market.
Thanks to government rules and incentives, there's a push for energy-efficient home renovations. For example, Belgium's National Energy and Climate Plan is all about cutting greenhouse gases and boosting renewable energy by 2030. In Flanders, if you buy a home with a poor energy rating, you have to upgrade it within five years. This has made homes with better energy ratings more popular and valuable.
In Flanders, homes with an A rating are 19.2% pricier than those with a D rating. This trend is catching on in Wallonia too, where homes with A or B scores are worth more. People are really starting to care about energy performance certificates (EPC) when buying a home.
Properties with good EPCs are not just a trend; they're a smart investment. Buyers are willing to pay more for homes that promise lower energy bills and a smaller carbon footprint. This is especially true in urban areas where energy costs are higher, making efficient homes even more attractive.
In the countryside, the story is similar. Rural properties with high energy ratings are becoming more desirable, as they offer a blend of modern efficiency and traditional charm. This shift is making energy-efficient homes a hot commodity across Belgium.
So, if you're thinking about buying property in Belgium, keep an eye on those energy ratings. They could mean the difference between a good investment and a great one.
Sources: Brussels Times, Brussels Times
13) Be aware of Belgium’s “right of pre-emption” law, as it can delay your property purchase
In 2023, the Brussels Government introduced a new rule giving tenants the first chance to buy their rented homes if the landlord decides to sell.
This rule, known as the pre-emption right, applies to tenants with long-term leases, usually those lasting at least nine years. It affects many homes in Brussels, adding layers of notifications and deadlines that can slow down the buying process.
Real estate agents note that while the use of pre-emption rights varies, it remains a significant factor in property deals where these rights are active. The legal process is strict, and landlords must follow deadlines closely; otherwise, the sale could be paused.
For potential buyers, understanding this process is crucial. If a landlord forgets to inform the tenant, the sale is put on hold, ensuring the tenant's rights are respected. This can be a surprise for those unfamiliar with the system.
In Brussels, this tenant-first approach is part of a broader trend to protect renters, but it can be a hurdle for buyers eager to close deals quickly. Knowing the ins and outs of this rule can save time and prevent unexpected delays.
So, if you're eyeing a property in Brussels, be prepared for this unique aspect of the market. It’s a reminder that buying a home here involves more than just negotiating a price.
Sources: Monard Law, Deloitte, Linklaters
14) Consider Belgium’s complex inheritance laws when planning to pass property to heirs
In Belgium, inheritance laws are notoriously complex, especially when it comes to passing down property.
One key issue is the distinction between immovable and movable property, which can lead to disputes. These categories are treated differently under the law, affecting both taxation and legal proceedings. Imagine owning a charming countryside home and a collection of valuable art; each is taxed differently, complicating estate planning.
Families often face significant challenges due to these distinctions. They might need to navigate multiple jurisdictions to resolve issues, leading to lengthy and costly legal processes. This is further complicated by the inconsistent implementation of tax credits for movable assets across regions, making it a real headache for property owners.
Many Belgians, including property owners, don't fully grasp these intricate laws, according to public awareness surveys. This lack of understanding can lead to misunderstandings and disputes. Add to this the high inheritance tax rates that vary by region, and you have a recipe for increased costs for heirs.
For instance, if you're eyeing a picturesque farmhouse in Flanders, be prepared for different tax implications than if you were buying in Wallonia. These regional differences can significantly impact your estate planning strategy.
Sources: Chambers, Tax Foundation, ING
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Belgium. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
15) Understand Belgium’s “kadastraal inkomen” for property tax calculations, as it can impact your investment returns
In Belgium, understanding "kadastraal inkomen" (cadastral income) is key for property investors.
This figure represents what a property would earn if rented for a year and is crucial for calculating property taxes, which can vary significantly by municipality and region. For example, in the Flemish Region, owning a modest home with a cadastral income below €745 can get you a 25% reduction in property tax. Knowing this can help you spot potential tax savings, which can boost your investment returns.
Real estate experts stress that understanding cadastral income is vital for optimizing tax liabilities and maximizing returns. If you renovate a property to increase comfort but not energy efficiency, it might still raise the cadastral income, affecting resale value and rental income. So, knowing how cadastral income is calculated and how it can be contested or reassessed is essential.
In different regions, cadastral income can vary, and understanding these differences can guide you in making smart investment choices. For instance, a property in one area might have a lower cadastral income than a similar one elsewhere, leading to lower taxes and better returns.
Investors can gain an edge by understanding how cadastral income impacts property taxes and, consequently, their investment returns. This knowledge can be a game-changer, especially when considering properties in various regions with different tax implications.
Sources: Kasper Kent, Keytrade Bank
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.
Related analyses:
- Why you should consider investing in property in Belgium
- Overview of the current state of the real estate market in Belgium
- The strongest trends for real estate in Belgium
- The hottest real estate markets in Belgium
- Forecasts and predictions for the real estate market in Belgium