House purchase is straightforward, if laboured. In summary, once you have found the property, you sign an agreement to purchase (compromis de vente/verkoopcompromis) almost immediately committing yourself to buy if the seller is in good faith. Then some four months later you sign a final contract (acte authentique/authentieke) once all the legal paperwork and the mortgage have been sorted out. This all happens via a notaire/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% registration tax to the state. For downmarket properties with a revenu cadastral/kadastral inkomen below Euro 740, this can be reduced to 6%, but there are not many of those to be had! Buyers in Flanders benefit from a slight reduction in the basic 12.5%. There are fixed state-agreed costs for the legal services of a notaire. These charges vary with the property value and are around 1.6%.  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% to the nominal price.

The role of the notaire

As all notaires 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, have a look at www.notaire.be. Find one before you find the house, as they will need to spring into action the moment you do so. The seller's notaire typically drafts the compromis de vente and sends it to your notaire, who should amend it for any unfavourable clauses. Once the text is agreed, you all visit the offices of the seller's notaire to sign and hand over a deposit (usually 10%). You now have a period agreed in the compromis to find a mortgage; your notaire will do the legal checks, and all going well four months later, you all meet in the offices of your notaire 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 from many sources including the major banks. 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. Ask your lender for a printed tabular estimate covering the loan period and discuss the options available to you. The loan can include the 17% 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.

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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Rental agencies / estate agents

The following agencies (agence immobiliers or makelaar) typically deal in both sale and rental.  Also visit the Immoweb site for a full list of agents in each region, or look inA-Z Listings.

Nationwide

Century 21
02 513 1996
www.century21.be

Immoweb
02 333 3214
www.immoweb.be

Antwerp

Belimmo
03 238 0357
www.belimmo.be

Carl Martens
03 226 8500
www.carlmartens.be

Engetrim – Trevi
03 218 6304
www.engetrim.be

Sidimex
03 203 0202
www.sidimex.be

Brussels

Eurorent
02 646 2686
www.eurorent.com

Eurohouse
02 672 0555
www.eurohouse.be

Housing Service
02 732 9920
www.housing-service.be

Macnash Associates
02 347 1147
www.macnash.com

Toby
02 219 2323
www.bureau-toby.com 

Trevi
02 343 2240
www.trevi.be

Gent
 
Era Vastgoed Ryckaert
09 223 1177
www.era.be

Nelde
09 233 1347
www.nelde.be

Liège

Optimum – Trevi
04 221 4875
www.optimum.be 

Paul Morris / Expatica