Buying a home in Belgium: a guide to Belgian real estate
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Loading... - Jeremy Klein
- 21 Jun 2022
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We explain real estate in Belgium, including the process of buying a home in Belgium as a foreigner, whether you’re after an off-plan home, new-build, or furnished apartment.
Belgium’s standard of living is high and Belgian property prices are relatively lower than many neighboring countries and capital cities. However, high property transaction costs can offset any short-term benefits; therefore it’s important to be aware of the Belgian housing market quirks and regulations before buying a property.
Home-ownership in Belgium
Around 72.7% of residents in Belgium own rather than rent their own home, according to 2018 statistics. This is slightly above the EU average which stands at around 64.3%.
This is largely down to the relative affordability of Belgian properties, even in more affluent city areas, along with the availability of mortgages in Belgium.
Should you buy or rent property in Belgium?
Whether you choose to buy or rent in Belgium largely depends on your individual circumstances. As with many other countries, there are pros and cons to consider with both.
Buying vs renting factors
access to finance – buying a home in Belgium, although cheaper than in many other places, still involves a far greater financial outlay than renting. Few people are in the position to purchase a home outright, so you’ll need access to credit such as a Belgian mortgage. If this is not possible, you may have to rent, at least for the short term.
length of time in country – if you’re moving to Belgium long-term, e.g. if you are retiring to Belgium, then buying may be more cost-effective. However, if your move is short-term or you are unsure how long you will stay, renting may be more sensible. The transaction costs associated with buying property in Belgium mean that it can take a few years to recoup costs.
ownership freedom v renting flexibility – do you want a place you can truly call your own that you can take ownership of and gives the freedom to renovate as you please? Then buying a place may be for you. However, this is a big commitment that you can’t just walk away from if your situation changes. If you value flexibility over decision-making ability, it may be better to rent.
long-term risks and opportunities – buying your own home is generally considered a more sensible long-term move, but this largely depends on the housing market. You can sell property at a profit, but you can also end up in negative equity of things take a turn for the worse. Check the Belgian property market forecasts before investing or, even better, get advice from a professional.
See here for our guide to renting in Belgium
Can expats buy property in Belgium?
There are no restrictions to stop foreigners buying property in Belgium or taking out a Belgian mortgage, even if they are non-resident.
However, different tax implications apply between resident and non-resident buyers in Belgium. You can read about Belgium’s visas for foreigners, as well as applicable Belgian taxes.
It’s important to note that those who rent out their apartment, even temporarily on house-sharing websites such as Airbnb, must declare any income on their Belgian tax return. Those who fail to declare rental income risk a fine of up to €1,250 or a 200% tax surcharge. Read More...
