Real estate costs in Belgium: the complete overview

As a seller, you pay various costs when selling your property. It's important to map these costs out in advance, so you know how much you'll net. The agent's commission is typically the largest cost. In Belgium, a real estate agent's commission averages 3% of the selling price, excluding VAT (21%). For a property at €350,000, that amounts to €10,500 + €2,205 VAT = €12,705. This rate varies per agent and is negotiable. Some agents work with a fixed fee, others with a degressive rate. Additionally, you pay for the mandatory certificates: the EPC (€150-€250), the soil certificate (€50), the electrical inspection (€150-€200) and the asbestos certificate (€400-€700 for homes built before 2001). In total, that amounts to €750 to €1,200 in certificates. If you still have an outstanding mortgage, you pay a reinvestment indemnity to the bank. This amounts to a maximum of 3 months' interest for a variable rate, or 6 months' interest for a fixed rate. For a remaining capital of €150,000 and a fixed rate of 3%, you pay a maximum of €2,250. The notary typically does not charge the seller a separate fee — these costs are traditionally borne by the buyer. However, you do pay any costs for the cancellation of your mortgage, which amounts to €500 to €1,500. At De Steenboer, we are transparent about our fees. We discuss all costs upfront, so you know exactly what to expect. No hidden costs, no surprises.

As a buyer, you pay significant additional costs on top of the purchase price. In Flanders, you should budget for 7 to 15% extra costs, depending on your situation. Registration fees are the largest cost and are discussed in detail in the next chapter. In Flanders, you pay 3% for a sole owner-occupied property or 12% for a second residence or investment. Notary costs (fees, duties and deed costs) typically amount to 1.5 to 2% of the purchase price. For a property at €350,000, that amounts to approximately €5,250 to €7,000. These costs are legally calculated via a degressive scale and are identical at every notary in Belgium. If you take out a mortgage, you pay mortgage costs: administrative fees (€250-€500), valuation fees (€200-€400) and the mortgage duty (1% of the borrowed amount + €220 per tranche of €25,000). For a loan of €300,000, total mortgage costs easily reach €5,000 to €7,000. Then there are the less visible costs: moving costs (€500-€2,500), utility connections (€100-€300 per connection), any renovation costs and the fire insurance the bank requires before releasing the loan. Concrete example: for a property at €350,000 in Herentals as a sole owner-occupied property, you pay approximately €10,500 registration fees + €6,000 notary costs + €6,000 mortgage costs = €22,500 in additional costs. Your total budget must therefore be at least €372,500.

Registration fees are a tax you pay when purchasing real estate. In Flanders, two rates have applied since 2022: 3% and 12%. The reduced rate of 3% applies to the purchase of a sole owner-occupied property. To qualify, you must meet three conditions: at the time of purchase you may not own any other property in full ownership (except a plot of land), you must register your domicile in the property within two years of purchase, and it must be a straightforward purchase (not a gift or inheritance). If you already own a property but sell it within one year of the new purchase, you can still benefit from the 3% rate. You then initially pay 12% and subsequently request a refund of the difference. The standard rate of 12% applies in all other cases: a second residence, an investment, a commercial property or building land. This rate makes property investment in Flanders significantly more expensive than in, for example, Brussels (12.5%) or Wallonia (12.5%). Example: for a property at €350,000, you pay €10,500 in registration fees with the reduced rate. With the standard rate, you pay €42,000 — a difference of €31,500. Important: for modest properties (purchase price up to €220,000), an extra reduced rate of 1% applies for major energy renovation (improvement of the EPC label by at least two levels within 5 years). This is particularly relevant for older homes in the Kempen. The notary calculates and collects the registration fees when the deed is executed. You therefore don't pay them directly to the tax authorities, but to the notary who forwards them.

Notary costs for a property purchase consist of three components: the notary's fee, the duties and the miscellaneous costs. The notary's fee (honorarium) is calculated based on a legally fixed degressive scale. It is identical throughout Belgium — so you pay the same rate at every notary. For a property at €350,000, the fee amounts to approximately €3,600 (excl. VAT). The scale works as follows: 4.56% on the first tranche up to €7,500, 2.85% on the tranche €7,500-€17,500, 2.28% on €17,500-€30,000, 1.71% on €30,000-€45,495, 1.14% on €45,495-€64,095, 1.14% on €64,095-€250,095, and 0.57% on everything above. The duties include the registration fees (3% or 12%), the mortgage duty (if you take out a mortgage) and the mortgage registration fee. These duties are collected by the notary and forwarded to the government. The miscellaneous costs (deed costs) cover administrative costs: searches at the land registry, the mortgage keeper, urban planning, OVAM and other authorities. Budget €800 to €1,200 for these costs. Tip: you can run a notary simulation on the website of the Federation of Notaries (notaris.be). This way, you know exactly how much you'll need to pay in advance. Keep in mind that 21% VAT is charged on the notary's fee. Important: the buyer freely chooses their notary. You are not obliged to use the seller's or the agent's notary. At De Steenboer, we work with reliable notaries in Herentals and Zandhoven, but the final choice is always yours.

If you take out a mortgage to finance your property, a series of costs are added on top of the purchase and notary costs. Administrative fees are the bank's costs for processing your loan application. These vary from €250 to €500 depending on the bank. Some banks waive administrative fees as a promotional action — so it pays to compare. Valuation fees cover the visit of an independent valuer who assesses the property's value on behalf of the bank. The cost is €200 to €400. The bank uses this valuation to determine how much it's willing to lend (the loan-to-value ratio, typically a maximum of 90% of the appraised value for a first home). The mortgage duty amounts to 1% of the borrowed amount. For a loan of €300,000, you pay €3,000 in mortgage duty. Additionally, you pay a mortgage registration fee of €220 per tranche of €25,000. The notary's fee for the mortgage deed is calculated based on the same degressive scale as for the purchase deed, but applied to the borrowed amount. For a loan of €300,000, the fee for the mortgage deed amounts to approximately €2,800 (excl. VAT). An alternative to a mortgage registration is a mortgage mandate. This is cheaper at closing (no 1% mortgage duty), but the bank can later convert the mandate into a full mortgage. This is increasingly offered for the portion above 80% loan-to-value ratio. Total example: for a loan of €300,000, budget for administrative fees (€400) + valuation fees (€300) + mortgage duty (€3,000) + registration fee (€2,640) + notary mortgage deed (€3,400 incl. VAT) = approximately €9,740 in mortgage costs.

Once you become an owner, you pay annually recurring costs that you should factor into your budget calculation. The immovable property tax is an annual tax based on the cadastral income (KI) of your property. In Flanders, the base rate is 2.5% of the KI, but on top of that come the surcharges from the province (typically 25-30%) and the municipality (varying from 600 to 1,800 additional centimes). For a property with a KI of €1,500 in Herentals (1,350 municipal centimes), you pay approximately €1,500 to €1,800 annually in property tax. The municipal tax is a separate levy imposed by municipalities. In Herentals, you pay an additional personal income tax and possibly a waste tax. The total amount varies from €100 to €300 per year. Fire insurance, while not legally mandatory (unless you have a mortgage), is indispensable in practice. Good fire insurance for a property in the Kempen costs €300 to €600 per year, depending on the surface area, year of construction and coverages. Maintenance costs are often underestimated. Budget on average 1% of your property's value per year for ongoing maintenance: painting, repairs, garden maintenance, heating maintenance (mandatory annual inspection €100-€150), chimney maintenance and unforeseen repairs. For a property worth €350,000, that's €3,500 per year. Energy is an increasingly significant cost. An average household pays €2,000 to €4,000 per year in gas and electricity, depending on the EPC label. A property with label A can save up to 60% compared to label F — another reason to pay attention to the EPC when buying. Water and telecom come on top: budget €400-€600 per year for water and €600-€1,200 for internet, TV and telephony.

When you sell your property, in certain cases you pay tax on the capital gain — the difference between the purchase price and the selling price. Capital gains tax on real estate in Belgium depends on the holding period. If you sell a property you purchased less than 5 years ago (for building land: 8 years), the capital gain is taxed as 'miscellaneous income' at a rate of 16.5% (+ municipal tax). The capital gain is calculated as the difference between the selling price (minus selling costs) and the purchase price (plus 25% flat-rate cost increase or actual costs, plus 5% per year indexation). Example: you bought a property for €300,000 and sell it after 3 years for €370,000. The indexed purchase price amounts to €300,000 + €75,000 (25% flat rate) + €45,000 (5% x 3 years) = €420,000. Since the selling price (€370,000) is lower than the indexed purchase price, you pay no capital gains tax in this example. If you held the property for longer than 5 years, the capital gain when selling is completely tax-exempt. This is the case for most sellers. For professional property investors, different rules apply. If the tax authorities determine you exhibit a 'speculative' pattern (multiple purchases and sales in a short time), the capital gains may be taxed as professional income at the progressive rate (25-50%). This is a grey area — always consult a tax advisor. Important for heirs: if you inherit a property and sell it, the starting amount is the value declared in the estate, not the original purchase price. The capital gain is thus calculated based on the value at inheritance. At De Steenboer, we are happy to inform you about the tax consequences of your sale. We are not tax advisors, but we know the basics and refer you to the right specialist when needed.