On the positive side, owner-occupiers in Belgium gain tax advantages. In 2004 tax regulations were introduced which allow mortgage interest, capital repayments and premiums for outstanding balance insurance to be deducted from taxable income, up to a maximum of EUR 2550.

Capital Gains tax of 16.5% is payable on properties that are sold within five years, if they do not meet certain tax-exemption criteria.

The procedure for buying a property in Belgium is as follows:

- When you find a suitable property, conduct a structural survey if you wish (this is not linked to the mortgage in Belgium).

- Appoint a notary, who will conduct legal checks on the property on your behalf and liaise with the seller's notary in dealing with the documentation.

- Agree the purchase price, sign an agreement to purchase and pay a deposit, usually around 10% of the purchase price.

- Take out insurance on the property - you are liable for any damage once the agreement has been signed.

- Secure a mortgage if necessary.

- Attend your notary's office along with the seller to sign the final contract (normally around 4 months after signing the initial agreement).

- Take possession of the property.

Mortgages are available from a range of sources including the main banks, and there are a variety of different payment and interest arrangements on offer.

People who are employed in Belgium under the special tax arrangements for foreign executives should check whether buying property in the country would invalidate their eligibility for these arrangements.

--

Got something to add to this section? Spotted something which should be changed? Please let us know!

Click here to return to the contents page for "Belgium - an expatriate guide."