Guide for Canadians Buying Property in Belgium

Last Updated: 18 Feb 2023

Are you ready to explore the vast world of property buying in Belgium?

From beautiful coastal towns to sprawling urban centers, this small European country has something for everyone.

Belgium is a small but interesting European country. It borders France, The Netherlands, Germany, and Luxembourg. From its medieval cities, stunning architecture, and countless castles to its renowned chocolate industry, beer festivals, and lively café culture, there is much to explore in Belgium. Every corner of the country offers something unique; whether you want to relax by the sea or a place to call home, there is no shortage of options for finding the perfect property in Belgium.

Can Canadians Buy Property in Belgium?

Belgium is an ideal destination for international property buyers. Canadians residing outside have the same rights as those who live in the country, however, those who are not permanent residents of a country have distinct tax rules. While transaction costs may be higher in Belgium than in other parts of Europe, Belgium’s laissez-faire regulations make it a less cumbersome process when investing in real estate.

Why Buy Property in Belgium?

Belgium is an ideal choice for property buyers looking to invest in real estate due to its high standard of living, low property purchasing costs, universal health care, quality education system, and well-developed infrastructure. Listed below are some of the main reasons why buying property in Belgium is an attractive option:

Low Property Prices – Belgian property prices tend to be much lower than those in other European countries, making it more affordable for buyers².
High Standard of Living – Belgium has a very high standard of living, providing residents with access to all the modern comforts they could need while remaining
Best Healthcare in Europe – Belgium offers one of the best healthcare systems in Europe, so you can rest assured that you and your family will be taken care of if any medical issues arise.
Quality Education System – The Belgian education system is highly rated and provides students with the skills needed to become successful adults regardless of their field or profession.
Excellent Infrastructure – With its efficient transportation networks and well-maintained roads and ports, Belgium makes it easy for people to move goods around the country quickly and safely.

Belgian Property Market

Ranked among the top countries in Europe³, Belgium’s real estate market is poised to experience an imminent surge of prices. Belgian house prices have seen a more gradual increase relative to other European nations during the pandemic, and this trend is anticipated to continue due to its stable purchasing power. The Federal Planning Bureau reported that the buying power of Belgian families decreased by only 0.1% last year and will rebound with a 0.7% boost this year. By the year 2022-23, it is anticipated that the housing market will experience a upswing¹; this trend may continue until 2023 when house values start to decrease.

Should you Buy or Rent Property in Belgium?

The decision to either purchase or rent property in Belgium depends on your personal situation. Weighing the advantages and disadvantages of both options, like most other places, will help you make an informed choice.

Purchasing a home in Belgium may be more affordable than in other regions of Europe. Consequently, it is essential to investigate the possibilities of utilizing Belgian mortgage credit if you want to purchase a property. If obtaining this financing is not possible, then renting is another great option.
Deciding between buying and renting a property in Belgium depends on your length of stay. If you are relocating for the long term, purchasing may be more economically wise, but if your residency is short-term, then it is better to rent. The costs associated with acquiring a piece of real estate might take a few years to regain.
If you are looking for a sense of independence and the ability to customize your living space as desired, then buying may be the way to go. On the other hand, renting offers more flexibility than ownership can bring but has less decision-making power associated with it, so consider what matters most when making your choice!
When it comes to long-term risks and opportunities, buying a house is often seen as the wiser choice. Whether or not this turns out to be true largely depends on the housing market. To maximize your chances of success, make sure to review any Belgian property market diligently before investing.

Cost of Buying Property in Belgium

When you buy a property in Belgium, the costs are typically divided between the buyer and the seller. Typically, this means that buyers pay around 13-16% of the purchase price for older properties or 22% for newer ones - whereas sellers only need to cover 3%-5%.

1. Registration Tax

For properties that are older than two years, the buyer is responsible for paying a registration tax. Depending on where you live, this rate can be between 5-6%, but it varies from region to region. For less expensive homes and real estate, these fees could potentially even be lower!

2. VAT

Properties less than two years old are now charged with a Value Added Tax of 21% on their purchase price.

3. Notary Fee

Notary fees typically range from 0.2%-4% of the purchase price, with an average cost of 1.6%. To get a precise estimate for notarial services such as meeting with the parties, minutes-taking during sessions, creating notarial acts, and registering them afterward.

Best Places to Buy Property in Belgium

Belgium is an attractive destination for those looking to purchase a property. With its historic cities, easy access to Europe, and vibrant culture, the country offers a great opportunity for anyone seeking to invest in real estate. In terms of where to buy property in Belgium, there are several options depending on what you're looking for.

Antwerp

Antwerp is an excellent choice for those interested in buying property. With its convenient location close to the Dutch and German borders, it is easy to get around Europe. The city boasts a wide range of housing options, from modern apartments to traditional homes. In addition, the cost of living is relatively low compared to other cities in Belgium.

Brussels

Brussels is the capital of Belgium and a great place to buy property. It offers an array of architectural styles, from modern high-rises to classic townhouses. The city also has plenty of amenities, including world-class restaurants and entertainment venues, making it an ideal place for those looking for a vibrant lifestyle.

Ghent

Ghent is a charming city in the Flemish region of Belgium. It is known for its historic architecture and picturesque canals, making it an attractive place to buy property. The city also offers great transport links to other parts of Belgium and is close to some of Europe's most important cities, such as Paris, London, and Amsterdam.No matter what kind of property you are looking for, there is sure to be something in Belgium that suits your needs.

Process of Buying Property in Belgium

Buying property in Belgium is an exciting and potentially lucrative undertaking. However, it is important to understand the process so you can make sure you get the best deal possible. Here we lay out the steps for buying a property in Belgium:

1. Find a Property

Before you start looking, make sure that you know what type of property you want and your desired location. Once you have a good idea of what you are looking for, start searching for properties that meet your criteria. You can search online or contact local real estate agents in the area who will be able to provide valuable information about available properties.

2. Talk with a Property Agent

Once you have identified a few properties that interest you, contact a property agent who can arrange viewings and provide additional information. A good property agent will be able to answer any questions you have as well as make recommendations based on your budget, location criteria, and other factors.

3. View and Choose a Property

After you’ve identified a few potential properties, arrange viewings with the property agent. This will give you a better understanding of how well the property suits your needs and budget. If there are any defects or issues with the property, make sure to let the agent know so they can negotiate on your behalf if necessary.

4. Make an offer

Once you’ve identified the right property, it is time to make an offer. Make sure that your offer is reasonable and in line with current market prices for similar properties in the area. If you need help making an offer, a good real estate agent can guide you through the process.

5. Hiring a Lawyer

After the seller has accepted your offer, the next step is to hire a lawyer. Your lawyer will review all documents related to the purchase and make sure everything is in order before you move forward with the sale. Make sure that you find a reputable lawyer who is familiar with property law in Belgium.

6. Arrange a Survey

Before you move forward with the purchase, arrange for an independent survey to be done. This will help ensure that no significant problems or issues exist with the property that could affect your ability to obtain financing or resell in the future.

7. Exchange Contracts

Once you have obtained approval from your lawyer and completed the survey, it is time to exchange contracts. This is the final step before you take ownership of the property and requires both parties to sign a legally binding agreement.

8. Paying the Deposit

After signing the contract, you will need to pay a deposit. The amount of the deposit varies depending on the purchase price, but typically ranges from 5-10%.

9. Final Arrangements

Once the deposit has been paid and both parties have exchanged contracts, you will need to make final arrangements for the purchase. These arrangements include obtaining funding if necessary, arranging insurance, and transferring funds from your account to the seller’s account.

By following these steps, you can ensure that you get the best deal when buying property in Belgium. Of course, it is important to do your research beforehand and make sure you are informed about the process. With the right information and guidance, you can confidently make an informed decision about buying a property in Belgium.

How to Pay for Property Purchases in Belgium as a Canadian?

Canadians looking to purchase property in Belgium must be aware of the current exchange rate for their Canadian Dollars into Euros. Fortunately, live currency calculators make it easy to stay up to date on the latest rates. It is important to double-check with a calculator before sending money abroad, this will help protect your investment and set you up for long-term success.

How to Get the Best Exchange Rate when Buying Property in Belgium as a Canadian?

When making a property purchase, it is essential to consider the foreign exchange rate between two countries. This will help keep your funds intact and safeguard you from expensive bank transfer fees or unfavorable exchange rates. To stay ahead of these changes and get the most out of your money, using an experienced foreign currency provider is highly recommended. Despite the ever-changing exchange rates, it is possible to still make successful investments in overseas real estate. With research and proper planning, you can ensure that you get the best deal possible. However, if you are a Canadian looking to purchase real estate in Belgium, then it will be necessary to convert your CAD into EUR prior to making the purchase.

What are the Ways Canadians can use to Buy Property in Belgium?

Purchasing property in Belgium as a Canadian can be done either through a bank or through a money transfer service provider.

Banks are often the more traditional choice, however, these methods can come at high costs, with restrictions and delays when it comes to international transactions.
Foreign exchange services, on the other hand, offer an efficient and cost-effective solution. Payments are guaranteed and there are no hidden fees or charges. Additionally, the entire process is simplified from start to finish, ensuring that payments remain secure throughout each transaction.

Can I Use my Bank to Convert Canadian Dollars to Euros?

Yes, you can use your bank to convert Canadian dollars to Euros, however, banks do charge exorbitant fees and high rates. Furthermore, banks can take days or even weeks to process international money transfers compared to services like MTFX, which offers fast and secure transactions. Ultimately, while banks may be convenient, they are often not the most cost-effective or time-efficient option when exchanging currency.

Streamline cross-border payments for your Property Purchase with MTFX

Why is MTFX the Perfect Option for International Money Transfers?

MTFX is the perfect option for international money transfers because it is fast, reliable, secure, and much more:

Fast and Reliable Service - MTFX provides an efficient service designed to ensure your money transfer reaches its destination quickly. With MTFX, you can also monitor the exchange rates in real time, so you can be sure of getting the best value for your money at any given time.

Secure Platform - MTFX has implemented cutting-edge security measures to ensure that your money is always safe and secure.

Competitive Exchange Rates - Through MTFX you get access to some of the most competitive exchange rates in the market. You can be sure that you are getting the best deal when transferring money abroad.

Excellent Customer Support - MTFX provides support around the clock, with a team of experienced professionals on hand to answer any queries you may have about your transaction. The company also offers a range of helpful tutorials and guides for those new to international payments.

Diverse Range of FX Tools - MTFX offers a wide range of foreign exchange tools to help make international money transfers as simple and straightforward as possible. From currency conversion calculators to rate alerts, users can tailor their experience according to their individual needs.

For these reasons, MTFX is the ideal choice for anyone looking to safely and securely transfer money abroad without breaking the bank.

Open an account today to enjoy simple, secure, and cost-effective international payments to buy property in Belgium with MTFX.

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