Today, property in Belgium has become more affordable. The average cost of real estate in this country is acceptable: from 500 Euros per square meter. In France, for example, an average price of one square meter is about 2 thousand Euros.
The most interesting cities in the country are Brussels and Antwerp. In general, Brussels is the economic, political and cultural center of this state. It is often called the “little Paris”. Many central authorities are located here, such as: ministries, EEC commissions, embassies, NATO, international governments and much more. Here to buy a decent apartment of 100 square meters will cost about 70 thousand Euros.
Buying a property
In Belgium the process of registration of real estate lasts about three months. First, a contract (preliminary) is drawn up by a notary, then a certain amount is paid to the seller, as a rule, this is 10 percent of the total cost of the object.
Then the notary prepares all the necessary documents for the conclusion of the transaction (certification of the land cadastre, lack of litigation on this property, data compliance, draft contract and much more).
If a foreign buyer buys real estate on credit, then he officially immediately becomes the owner of the property, since real estate is immediately drawn up for him. With it you can do everything: live, rent and even sell. The notary will issue all the necessary documents for any occasion.
Regardless of the Crisis in Brussels, there is the construction boom. A similar boom can be compared with the construction in Moscow. Nevertheless, the cost of property in Belgium is much lower than in Moscow. An average price is 500-100 Euros per square meter. Experts say that in the coming years, the value of real estate will increase sharply.
If we compare current real estate prices in Germany or the Netherlands with Belgian prices, the latter are much lower. The peculiarity of the state tax legislation is the main reason for such prices. In Belgium, no income tax reduction is provided if the purchase of a house is made by a private person. Such a statement of things makes the acquisition of real estate attractive for non-residents or residents with a fairly small income.
For example, a bungalow with an area of 1483 square meters in Flanders in perfect condition with a garage for 2 cars, with a pool, four bedrooms will cost about 230 thousand dollars. Nice apartment of 100 square meters in Brussels, you can buy for 70 thousands Euros.
In a country like Belgium, there is a great demand for “social” apartments. The housing takes more than 50% of the total budget of the population. It’s a problem for families with a small income. Public real estate agencies (also known as AIS) are actively trying to solve this pressing problem.
Rental Property
The market in Belgium is the most diverse and dynamic, of course, after Paris and London. Especially this is facilitated by the huge organizations that relocate their headquarters to this state, buy and rent housing in Belgium for top managers. Favorable conditions warm up this process. For example, the rental rate for office space in Brussels is now 60% lower than in other European capitals.
Rental rates for housing here are more affordable compared to other European cities. So the 1-2-room apartment of 60 square meters can be rented for 500 Euros. A three or four bedroom apartment, with an area of 100 square meters, can be rented for 700-800 Euros (this is already taking into account utilities). If you have 1,400 Euros, then you can rent a separate house with an equipped kitchen, furniture and a garage. Large villas are offered to the richest tenants. For example, a villa (eight rooms) with a green plot of half a hectare will cost about 4 thousand Euros per month.
Fees and taxes for the purchase of property in Belgium
If you plan to buy a house or apartment in Belgium in the secondary market, then you need to consider the fact that you will additionally need to pay the registration fee. In Belgium, it is very high; one might say a record – as much as 12.5% of the total contract amount. This amount can be paid both immediately and not immediately. The maximum period is four months from the date of conclusion of the contract. From transactions with real estate in the secondary market, VAT is not withdrawn.
If you buy a new house or unfinished, then the registration fee of 12.5% is taken only for land. Construction is subject to an additional cost tax of 21%.
Note that for the sale of real estate spouses need to achieve full family consent. For example, a house belongs to wife, and all family members live in it (that is the main place of residence). In this case, without the consent of the husband, the wife will not be able to sell housing, even if she is the sole owner.
If you used the purchased Belgian house, and then decided to sell it, then the revenue will be interesting for the fiscal authorities of Belgium. There is a category of people who are not subject to real estate tax. These are the people who used the house for its intended purpose and lived in it for more than five years.
In some other case, as well as if the property in Belgium was given to you as a gift (inheritance does not apply to this) less than three years ago, then you will pay 16.5 percent of the “incremented” to the state. By the way, professional resellers of housing – marchands de biens, pay the same money.
The costs that you incur during the execution of the transaction, as well as for the first 4 years of life in the house, you can safely lay in the price. It is permitted, without paying fees, to “increase” capital at the rate of not more than 5 percent for each year lived in the property. If the gap is large, then the amount must be justified or you pay just tax.