What are the costs involved in buying a property?

When purchasing a property, there are always significant costs involved. To avoid being caught off guard by these, it is best to find out about them in advance! The aim of this article is to provide you with clear information and tools so that you can accurately determine your budget.

Registration duties

• In the Brussels-Capital Region, registration duties are 12.5% of the property price. However, if this is your first purchase, you will benefit from an allowance of €175,000, which means that you will no longer pay registration duties on the first €175,000 (this represents a saving of €21,875)! Registration duties are a tax collected by the REGION, so do not assume that your notary is profiting at your expense!
• In the Walloon Region, registration duties are also 12.5%, with a possible allowance of €20,000.
• In the Flemish Region, registration duties are 10%, with a possible allowance of €15,000).
• Sales of new properties or properties under construction are subject to VAT rather than registration duties. In principle, the VAT rate is 21%.

Please note that when purchasing a modest home (with a cadastral income below €745), registration duties may be reduced.

Notarial deed costs and fees

A ‘deed executed before a notary’ means fees! Do not forget to include them in your calculations, as they represent a fairly significant amount. The fees are set by law and represent a percentage of the purchase price of your property; this percentage decreases progressively (allow approximately €1,000 for a €300,000 loan). These rates are calculated excluding VAT, so VAT is an additional amount to take into consideration (please note: only the notary’s fees and administrative costs are subject to VAT, not registration duties!).

In addition to the fees, you should also budget for the administrative costs relating to the various searches that the notary must carry out to ensure that the sale proceeds correctly. The amount of these costs depends on the workload associated with your purchase. You should allow approximately €800 to €1,100.

Registration with the mortgage registry costs €230. This involves recording the notarial deed at the mortgage registry office, which must hold a copy of the original deed.

Online tools are available to calculate these costs. We recommend the tool provided by notaire.be, which is reliable and provides a precise breakdown of what each item includes.

Calculate my purchase deed costs on notaire.be

Mortgage loan deed costs

The costs do not end there (that would be too easy). You must also register your loan with the notary.

The registration duty on your loan is 1% (regardless of the region). It is calculated on the basis of the amount borrowed and the ancillary loan costs (insurance premiums, for example). This tax is paid to the State.

The mortgage registration duty is 0.3% of the amount borrowed plus ancillary costs. This tax is also paid to the State.

Calculate my mortgage loan deed costs

Application fees

You will pay an application fee to your bank for setting up your loan. There is a maximum limit of €500 for administration fees.

Property tax

This is an annual regional tax. It is determined by the type of property, its location, household composition, dependants, etc. This means that the property's rental value (known as cadastral income) is assessed to calculate the tax you are liable to pay each year.

Fire insurance

Fire insurance varies very little between providers; expect to pay approximately €250 per year for an average-sized house. You can take out this insurance with your bank as part of a mortgage loan and may therefore benefit from additional advantages, but you are under no obligation to do so.

Outstanding balance insurance

Outstanding balance insurance is intended to protect your loved ones should you die unexpectedly during the repayment term of your loan. The insurance may cover the entire loan or only part of it. Although this insurance is not legally compulsory, it is generally required by the lender. Please note that you are under no obligation to take out this insurance with the same institution that granted your loan, so do not hesitate to compare providers, as the costs can vary considerably. However, taking out the insurance with the bank providing your loan may be taken into account when negotiating your interest rate!

Other supplementary insurance policies are available in addition to these two “basic” policies.

Buying a property is therefore not something to be taken lightly! Prepare thoroughly and calculate how much the purchase will cost you in total, including all fees!