Vastgoed adverteren - Verkoop, koop, huur woningen, huizen, appartementen en gronden

The process of buying a house in Belgium is straightforward, if laboured. Here's our updated guide.

In summary, once you have found the property you sign an agreement to purchase (compromis de vente or verkoopcompromis) almost immediately committing yourself to buy if the seller is in good faith, and then some four months later you sign a final contract (acte authentique or authentieke) once all the legal paperwork and the mortgage has been sorted out. This all happens via a notaire or notaris. There is one notaire for the buyer and one for the seller.

The price of the property agreed upon with the seller and the sum of money you finally hand over are alarmingly different. First, for most properties you pay 12.5 percent registration tax to the state.

For downmarket properties with a revenu cadastral or kadastral inkomen below EUR 740, this can be reduced to 6 percent, but there are not many of those to be had!

Buyers in Flanders benefit from a slight reduction in the basic 12.5 percent. There are fixed state-agreed costs for the legal services of a notary. These charges vary with the property value and are around 1.6 percent.  If you want a mortgage, there is both a state tax on the loan, fixed costs for the notaire, and a fixed fee for the mortgage lender.

All in all this adds some 17 percent to the nominal price.

Note that if you are buying a house and you do not own any other properties (anywhere in the world) you get a rebate on the registration tax.

The role of the notary

As all notaries are obliged to pay the same fees, it is best to select one on recommendation, and preferably one who is conveniently-located and speaks a common language.

Failing that, visit the http://www.notaire.be/ website. Find a notary before you find the house, as they will need to spring into action the moment you do so.

The seller's notary typically drafts the compromis de vente and sends it to your notary, who should amend any unfavourable clauses.

Once the text is agreed, you all visit the offices of the seller's notary to sign and hand-over a deposit (usually 10 percent).

You now have a period agreed in the compromis to find a mortgage, your notary will do the legal checks, and all going well, four months later you all meet in the offices of your notary to sign the acte authentique and hand-over the remaining money (usually a cheque from the mortgage lender) in return for the keys.

Strangely, structural surveys are not a legal part of securing a mortgage. It is typically an independent activity for your own peace of mind and should be done before signing the compromis de vente. You will need to show serious hidden defects in order to escape penalty-free once you have signed.

Another oddity is that once you have signed the compromis de vente, you become liable for the property insurance. Even if the property burns down whilst you don't legally own it, you lose!  
 
Mortgages

There is a full set of mortgage options available in Belgium and from many sources including the major banks.

Belgian banks are quite conservative, and some can be reluctant to lend money to expats with temporary contracts. 

Mortgages can be fixed for the term of the loan, variable annually, or reviewed every three or five years with different options on the type of interest payment. Talk over the options with your lender and ask for a printed tabular estimate for the period of the loan for the options that seem best for you. 

The loan can include the 17 percent additional costs if your lender agrees. Some lenders will charge you for a mortgage offer that you do not take up: check this in advance and walk away if you find that inappropriate.

Offers also have a time limit on them.  Single market mortgages are available from, say, Germany but these can only be obtained via a broker.

Some lenders will try to link the loan to their own property and life insurance. Ensure you see the costs for this clearly split out and compare with other quotes. Insurance rates in Belgium are high. If you have existing life insurance, there should be no need to duplicate the cover at a higher cost. Lenders are no longer able to insist you buy insurance from a specific company.  

One of our readers pointed out that the use of mortgage brokers is quite normal in Belgium, they help you find the best loan that you qualify for. However, of you are a "strong" borrower and a bit of a negotiator you can probably negotiate better rates yourself.  
 
Do it yourself

Finally, if you buy a property to renovate, be aware that while VAT on materials and services is usually 21 percent, you benefit from a special 6 percent rate for renovating properties older than 15 years. Some communes provide income-related assistance for certain renovations.

But beware, once completed, the property may be re-assessed for the revenue cadastral or kadastral inkomen, which is the basis for the annual communal tax on the property.

You may end up paying higher taxes to the commune and find that in the long-term they get their money back. 
 
Selling already?

Just reverse the process above. If you sell within two years, you can claim back around 44 percent of the taxes and fees you have paid.

But if you sell within five years, you will also be liable for capital gains tax:  However all expenses you have incurred that relate to the property value are deductable; so keep those receipts.

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