Financing, fees and taxation in Belgium

Buying a property in Belgium involves much more than the purchase price. Notary fees, registration fees, taxes and taxation are added to this. This article helps you understand these unavoidable costs and anticipate their impact on your budget, to approach your project with complete peace of mind.

Costs related to the purchase

In Belgium, notary fees include: 

• Registration fees: 
• Flanders : 12% in general but 2% for own and single dwelling.
• Wallonia : 12.5% in general but 3%  for one's own and only dwelling.
• Brussels : 12.5% in general but allowance possible on the 1st tranche of €200,000 if the price is less than or equal to €600,000 and if the dwelling is own and unique.
• Notary fees : Regulated and calculated according to an official scale.
• Administrative fees and disbursements : Fees related to administrative formalities. Please note that some fees are increased by VAT.

If you take out a loan, additional fees for the mortgage credit deed are to be expected and also include mortgage registration and registration fees, notary fees and costs and disbursements.  

Useful tool Make your simulation via the notaries' website: Notary fee simulator – Fednot.

Property tax:

• It is an annual tax based on the indexed cadastral income of the property.
• The rates vary according to 3 location criteria: the region (Flanders, Wallonia, Brussels), the province and the municipality.

• Revenue Taxed rental property : If residential property, taxation is based on the indexed cadastral income. If furnished and/or rented for a professional purpose: taxation is based on the actual rental income excluding charges.
• Possible deductions : Loan interest, maintenance costs.

• Sale within 5 years of acquisition: 16.5% capital gains tax
• After 5 years: No taxation
• 👉 Tip: no capital gains tax if the seller is domiciled.

• Sale within the first 5 years after acquisition: 33% capital gains tax.
• Between 5 and 8 years: 16.5% tax on capital gains.
• After 8 years: no taxation.

Useful tool Make your simulation via the FPS Finance website:  Real estate tax simulator – FPS Finance.

🔎 Discover all the steps of the Belgian Property Buyer's Guide:

• Defining your real estate project
• Know the types of real estate
• Essential information and preparation of visits
• Financing your real estate acquisition
  
• The stages of real estate purchase
• Costs related to the purchase of property, taxes and taxation in Belgium