VAN CUTSEM
Can anyone (including foreigners) own and occupy real estate in your jurisdiction (including shares in property owning companies)? Are there any restrictions?
Anyone can own real estate in Belgium. There are no restrictions regarding the property, as long as at the moment of the transaction the buyer can legitimate the origin of the funds being used (to counter any fraud or money laundering). Furthermore, anyone who’s authorized to be in Belgium (visa) can occupy real estate in Belgium. The purchase of shares may be challenged by the Belgian tax authorities, especially if the sole or main asset of the company whose shares are being sold is real estate. As a result, the purchase of shares may be subject to registration duties.
Are there restrictions on lending for the purchase of real estate by foreign companies? If so briefly give an outline?
There are no restrictions as such on lending for the purchase of real estate by foreign companies or foreigners. However, while there is no legislation prohibiting loans to foreigners, banks are not obliged to grant loans to people from other countries, even neighboring ones. Belgian banks are very reluctant to grant a loan to a person who has neither residence nor income in Belgium. In addition, most of the time, banks will require a personal contribution to finance the purchase. Banks may as well analyze the origin of those funds and ask the borrowers to expose how they will reimburse the loan, again in an optic to counter any fraud or money laundering.
Buying
Please provide a short summary of the fees and costs (including tax) relating to buying real estate in your jurisdiction.
When buying real estate in Belgium, the following costs apply on top of the purchase price :
- Registration tax / fees, which is a % of the purchase price (depending on the region in Belgium) ;
- Notary’s fees : are set by the government
- Administrative costs of the notary: include fees for all (additional) searches, operations and formalities made in the course of preparing, executing or finalizing a deed that are not prescribed by law
- Third party expenses (expert, …);
Owning
Are there taxes applicable to owning real estate and can the burden of the taxes be passed to someone else (e.g. a tenant or an occupier - not being the owner
Property tax is a regional tax on real estate that you must pay annually. Property tax is calculated on the basis of cadastral income. The cadastral income is not real income, but a notional income that corresponds to the average annual net income that the property would provide its owner, i.e. the average annual normal net rental value of the property at the reference time. In some cases, those taxes can contractually be passed on to a tenant or an occupier.
Tax Breaks
Are there tax breaks or other incentives for foreigners to buy real estate in your jurisdiction? If so, what are they?
Foreigners or foreign companies do not benefit any tax breaks or other incentives to buy real estate in Belgium.
How is the ownership of Real Estate evidenced in your jurisdiction?
All deeds drawn up between living persons, in which a transfer or assignment of ownership rights on a real estate takes place, must be transcribed at the Legal Security Office within the General Administration of Patrimony Documentation of the Federal Public Service of Finances. Outsiders can get there information on the legal situation of a property, based upon the name of the owner (e.g. existence of mortgage, etc.). Another important role is for the Land Registry where information about the ownership can be obtained based upon the identification of the plot of land.
a real estate takes place, must be transcribed
at the mortgage office
Is it possible to keep the identity of owners of real estate confidential in your jurisdiction?
No, it is not possible.