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).

Second viewing

Second thorough visit of a property before making a purchase offer.

Property purchase checklist

List of essential checks and steps to complete before and during a property purchase.

Soil attestation

Official document certifying the possible pollution state of a parcel's soil.

Urban planning information

Official information provided by the municipality on a property's urban planning status.

Fire insurance

Multi-risk home insurance covering the building and its contents against various damages.

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.

Amortization

Gradual repayment of borrowed capital within a mortgage loan.

Usury rate

Maximum legal rate beyond which a lender cannot grant a loan.

Rent indexation

Annual adjustment of rent based on the consumer health price index.

Early repayment

Partial or full repayment of the outstanding capital before the scheduled loan maturity.

Mortgage inscription

Formality registering the mortgage on the property at the Legal Security office.

Notary fees

All costs associated with the notary's intervention in a property transaction.

Mortgage broker

Independent intermediary comparing mortgage offers from multiple banks for the borrower.

Annual percentage rate (APR)

Indicator including all credit costs (interest, fees, insurance) in a single rate.

Green loan

Loan at advantageous rate intended for financing energy-saving works.

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.

Inheritance tax

Regional tax due on the transfer of a property estate upon death.

Property donation

Free transfer of a property during one's lifetime, subject to donation tax.

Gift tax

Regional tax levied on the free transfer of real estate between living persons.

Property income

Tax category encompassing all income derived from owning or renting property.

6% renovation VAT

Reduced VAT rate applicable to renovation works on dwellings over 10 years old.

Property estate planning

Legal and tax strategies to transfer a property estate in an optimized manner.

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.

Condensing boiler

High-performance boiler that recovers heat from flue gases to optimize efficiency.

Heat recovery ventilation

Mechanical ventilation system recovering heat from extracted air to preheat incoming fresh air.

Energy premium

Regional financial aid for the installation of energy-efficient equipment.

Energy class

Classification of a building from A++ to G based on energy consumption per square meter.

EV charging station

Electrical installation for charging an electric vehicle at home or in co-ownership.

Mandatory renovation

Regional obligation to achieve a minimum energy performance level within a defined timeframe.

Underfloor heating

Heating system integrated into the floor slab distributing uniform heat at low temperature.

Pipe insulation

Insulation of heating and hot water pipes to reduce heat loss.

Building energy performance

Overall indicator measuring how efficiently a building uses energy.

Airtightness

A building's ability to limit uncontrolled air infiltration through its envelope.

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.

Residential lease

Lease agreement governing the rental of a property serving as the tenant's primary residence.

Party wall

Shared wall between two neighboring properties, subject to a shared legal regime.

Hidden defect

Non-visible defect at the time of sale rendering the property unfit for its intended use or diminishing its use.

Ten-year warranty

Liability of contractor and architect for 10 years regarding serious structural defects.

Student lease

Short-term rental contract intended for higher education students.

Right of superficies

Real right allowing one to build or own a building on another's land.

Asbestos

Dangerous building material whose presence must be identified and managed during a transaction.

Short-term lease

Rental contract of 3 years or less, renewable only once.

Joint ownership

Legal situation where multiple persons jointly own a property without material division.

Breyne Act

Law protecting the buyer of a property to be built or under construction.

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.

Gross yield

Ratio between annual rental income and total purchase price, before deducting charges.

Net yield

Rental yield after deducting all property-related charges.

Property cash flow

Difference between rental income received and all property-related expenses.

Leverage effect

Financial mechanism amplifying an investment's return through borrowing.

Vacancy

Period during which a rental property remains unoccupied, generating no income.

Property company

Legal structure allowing multiple persons to hold and manage a property portfolio.

Property tax optimization

Set of legal mechanisms to reduce the tax burden related to real estate.

Property portfolio

All real estate properties held by a natural or legal person.

Property management

All activities related to the administration of a rental property.

Real estate crowdfunding

Crowdfunding allowing investment in real estate with reduced amounts.

Bare ownership

Ownership right over a property whose usufruct (right of use) belongs to another person.

Life annuity sale

Life annuity sale in Belgium: definition, types (free/occupied), annuity calculation, taxation and conditions. Complete guide with examples.

Building land

Parcel of land legally buildable according to spatial planning regulations.

Property division

Operation of dividing a property into several distinct units.