Belgian Real Estate Glossary
All essential real estate terms in Belgium: purchase, financing, taxation, energy and more.
Property purchase
Sales agreement
Preliminary contract binding buyer and seller in a real estate transaction.
Notarial deed
Official document drawn up by the notary that finalizes the property sale.
Condition precedent
Clause in the sales agreement suspending the sale until a specific event occurs.
Purchase offer
Written proposal by which a prospective buyer commits to purchasing a property at a specified price.
Penalty clause
Contractual provision setting a fixed indemnity in case of breach of the sales agreement.
Right of first refusal
Legal right allowing certain entities to acquire a property as a priority when it is put up for sale.
Public sale
Public auction of a property organized by a notary, open to all bidders.
Private sale
Real estate transaction negotiated directly between buyer and seller, without public auction.
Long lease (emphyteusis)
Long-term contract (27 to 99 years) granting a real right over a property in exchange for an annual fee.
Easement
Charge imposed on a property for the benefit of another, restricting the owner's rights.
Usufruct
Temporary real right to use and enjoy a property belonging to another (the bare owner).
Financing
Mortgage loan
Bank loan secured by a mortgage on the property.
Fixed rate
Interest rate that remains constant throughout the mortgage term.
Loan-to-value ratio
Ratio between the borrowed amount and the property value.
Variable rate
Mortgage interest rate that changes periodically based on a reference index.
Down payment
Portion of the purchase price funded by the buyer's own savings, without borrowing.
Outstanding balance insurance
Life insurance linked to the mortgage that repays the balance upon the borrower's death.
Mortgage
Real security registered on a property guaranteeing the repayment of a loan.
Mortgage release
Notarial deed cancelling the mortgage registration after the loan is repaid.
Refinancing
Operation of replacing an existing mortgage with a new one under better conditions.
Borrowing capacity
Maximum amount a borrower can obtain from a bank for a mortgage loan.
Taxation
Registration rights
Regional tax due when purchasing real estate in Belgium.
Cadastral income
Fictitious net rental income value assigned by the tax administration to each property.
Property tax
Annual regional tax calculated on the cadastral income of a property.
Abatement
Tax reduction on registration rights for first-time buyers.
Indexation
Annual adjustment of the cadastral income or rent based on the price index.
Real estate capital gains
Profit realized when reselling a property at a price higher than the purchase price.
Municipal tax
Local tax levied by the municipality, including surcharges on property tax.
Housing bonus
Historical tax benefit on mortgage repayments, abolished in all three regions.
Housing cheque
Walloon tax benefit replacing the housing bonus for mortgages on one's own dwelling.
VAT on new construction
Value added tax of 21% applicable to new constructions and major renovations in Belgium.
Tax deductibility
Ability to deduct certain property expenses from the taxable base or obtain a tax reduction.
Real estate tax declaration
Annual reporting obligations related to property ownership and income in Belgium.
Energy
EPC certificate
Document certifying a building's energy performance, mandatory when selling or renting.
Energy renovation
Works aimed at improving a building's energy performance.
Renovation grant
Regional financial aid for energy renovation works.
Energy audit
In-depth analysis of a building's energy performance with recommendations.
Energy sieve
Very poorly insulated building with an EPC label F or G, consuming excessive energy.
Heat pump
Eco-friendly heating system that draws energy from air, ground, or water to heat a building.
Roof insulation
Thermal insulation works on the roof, the top priority for improving energy performance.
Double glazing
Window composed of two panes separated by an insulating air or gas layer.
Solar panels
Photovoltaic installation on the roof converting sunlight into electricity.
Legal
Notary
Public officer who authenticates property sale deeds in Belgium.
Co-ownership
Legal regime applicable to buildings divided into private and common parts.
Land registry
Public register that records all real estate properties and their value.
Base deed
Founding document of a co-ownership defining the private and common parts of the building.
Building manager
Natural or legal person responsible for the day-to-day management of a co-ownership.
Co-ownership regulations
Legal document setting out the operating rules and rights of co-owners within a building.
Urban planning
Set of rules governing land use planning, construction, and soil designation in Belgium.
Building permit
Administrative authorization required to build, renovate, or change the use of a property.
Investment
Rental yield
Ratio between annual rental income and the purchase price of a property.
Buy-to-let investment
Purchase of a property with the intention of renting it out for income.
Shared housing
Renting a single dwelling to multiple tenants sharing common spaces.
Furnished rental
Renting out a property equipped with furniture and appliances for immediate occupancy.
Commercial lease
Lease agreement for a property intended for commercial, artisanal, or service activities.
Rental guarantee
Security deposit paid by the tenant to cover potential damages or unpaid rent.
Inventory of fixtures
Contradictory document describing the condition of a property at the start and end of a lease.
Common charges
Shared costs among co-owners for the maintenance and management of a building's common areas.