The purchase of a second residence is a dream for many people. A cozy chalet in the Ardennes or a sunny apartment on the Belgian coast? Find out here what it entails and what Belgian legislation says.
Contents
- What is a second residence?
- Do I need to register my second residence?
- Exemptions from registration
- How much does a second stay cost?
- What are the taxes of second residence in Belgium?
- May I rent out my second residence?
1. What is a second residence?
A second residence, also known as a second home or vacation home, is a property that a person or household owns in addition to his/her primary residence. He/she uses the property for recreational purposes such as vacations or weekend getaways. As the owner of a second residence:
- Are you not domiciled there (since it is not the primary family residence).
- you usually have the flexibility to use your property whenever you like
- you may rent out your second residence to generate additional income.
Examples of second residence:
- villa
- cottage
- chalet
- tinyhouse
- bungalows
- apartments
- …
2. Do I need to register my second residence?
No, but most municipalities do have an obligation to declare. Be sure to check with your municipality! Note: As an owner, it is important to know what your local regulations say and to report it correctly to avoid possible fines.
3. Exemptions from registration
Municipalities may include exemptions in their municipal regulations. However, these must be well justified and comply with the principle of equality. There are, however, some residences that are exempted:
- tents
- trailers
- portable caravans
4. How much does a second stay cost?
You pay the purchase price of the property. On top of that you pay registration fees of 12% in Flanders and 12.5% in Wallonia. A complete list of all costs (such as notary fees) involved in the purchase of a home can be found in our article All the costs involved in buying a house or apartment. If the new home is in need of some freshening up, keep a renovation budget. Think about a new kitchen or a swimming pool. Then the costs run high. There are also periodic expenses:
- utilities, e.g. water, electricity, gas and wifi.
- insurance, e.g., fire and liability insurance.
- any common costs for buildings under co-ownership
5. What are the taxes of second residence in Belgium?
You also pay property tax (an annual tax on real estate) for your second home or apartment. The property tax is calculated based on the cadastral income (KI) of the property. The KI is an estimated rental value assigned to the property and is determined by the Land Registry Administration. The property tax rate varies between regions and municipalities. In addition, many cities and towns levy a local municipal and/or county tax on a second residence. Find out in advance how much the second residence tax is. The exact information can always be found in the municipal regulations.
- You usually have to pay the council tax on second residences annually.
- The fee varies by municipality and is often a flat rate per second stay. For example, in De Haan you pay 550 euros per year and in Ostend 1,000 euros per year.
- In some municipalities, the tax depends on the location or total floor area of the residence.
- The owner (landlord) is usually the taxpayer, even if the residence is rented out.
- Municipal taxes should be proportional to the taxes paid by permanent residents.
- The tax should not discriminate against certain groups of owners.
Note: Also, don’t forget to declare your second residence to taxes. Even if you have not rented out your residence, you have to pay taxes! You must declare the non-indexed cadastral income on your tax return, which is multiplied by a factor of 1.4 (i.e. by 40%). You can find all the details on the website of the FPS Finance.
6. May I rent out my second residence?
Yes, but you need an environmental permit for this. Considering renting out your second residence to generate additional income? Here are some options:
- Short-term rentals to vacationers through platforms such as Airbnb or Booking.com.
- Long-term rental. This gives you more financial stability.
- Professional rental managers: outsource your rental activities to a professional rental management company.
Renting out your second residence offers both advantages and disadvantages. One of the obvious advantages is the potential additional income you can generate. By renting out your second residence, you can help cover the costs of purchasing, maintaining and taxes, and possibly even make a profit. Moreover, you can utilize your property when you are not using it yourself, making your investment even more valuable. On the other hand, there may be disadvantages, such as caring for tenants, managing advertising and bookings, and the wear and tear on your property due to rentals. There may also be tax obligations and legal requirements that you must meet when renting out. It is important to carefully weigh whether the advantages of renting out outweigh the disadvantages and whether it suits your personal situation and goals regarding your second residence.
Sources: FPS Finance, Flanders
Would you like to cite this article as a source? Then use:
Biets, R. (2024, Nov. 24). A second residence according to legislation. Apartment.be. Accessed on (date XX/XX/202X), from https://www.appartement.be/een-tweede-verblijf-kopen-van-a-tot-z/
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