The Cost of Buying a Property

Understand the taxes, fees and mortgage costs involved in buying property in Belgium...

Registration fees (Transfer Taxes) or VAT

The regions collect a registration fee (droit d'enregistrement) in most cases when a house is bought. In the regions of Brussels and Wallonia the fee is 12.5 percent; in Flanders it is 10 percent.

For new properties, the seller can choose to sell it with VAT. A home is considered new until 31 December of the second year after it was first occupied. The VAT rate for a new home and the land it is standing on is 21 percent.

Notary's Fees

These are fixed by law and depend on the value of the purchase.

Mortgages

Banks and insurance companies as well as social institutions offer mortgages (prêt hypothécaire). Government-subsidised mortgages (prêt social) are available for people fulfilling certain criteria, one being very low income.

Insurance

In addition to house insurance, it is recommended to take out an insurance policy which will pay off the remaining loan in the event of death (assurance solde restant dû).