Buy-to-let investment

Buy-to-let investment involves purchasing a property to rent it out and generate additional income. In Belgium, the average gross yield is between 3.5% and 4.5%. Key factors are: location (proximity to transport, shops, universities), property type (studio, apartment, house), purchase price relative to potential rent, and charges (property tax, maintenance, management, vacancy). Taxation is relatively favourable: when an unfurnished property is let to a private individual for private use, the actual rent is not taxed, but the indexed cadastral income plus 40% is. On purchase, the investor pays the standard registration duty rate, because the reduced rates are kept for buyers of their own home: 12.5% in Wallonia and Brussels, 12% in Flanders.