Offices in Belgium

Leasing an office in Belgium

Lease Length

A standard lease contract for offices and industrial buildings is signed for 9 years with landlord or tenant or both having a break option every three years. This is generally called a 3-6-9 lease. There is no statutory basis for this pattern however, and parties are free to vary it. The lease terminates automatically after the 9 years, unless parties decide mutually to prolong the contract.

 Any lease exceeding nine years has to be passed as an act before a public notary. Unless agreed by both parties, nor the landlord, nor the tenant has the right to break the lease at an earlier date then mentioned in the contract.

Rent Indexation

Rents are indexed every year at the anniversary date of the lease contract. The indexation is based on the health index. The standard lease contract allows no fixed rent review other than the break period.

Landlord's and Tenant's Obligations

Under the terms of the Code Civil, the landlord is responsible for the exterior of the property as well as replacement (but not maintenance) of communal technical parts such as lifts, boilers, air conditioning parts etc.

The tenant is responsible for all normal wear and tear within the premises and for specific damage to the fittings and fabric. An initial schedule of condition (état des lieux d’entrée/plaastbeschrijving van intrede) and a final schedule of condition (état des lieux de sortie/plaatsbeschrijving van uittrede) are drawn up and serve as the basis for calculating the tenant’s indemnities.

Property taxation

Corporate tax: 33.99%

VAT rate: 21%

Capital gain tax: 33.99%

Transfer tax: 12.5% (10% in Flanders)

Average Brussels tax on use of offices: 35 euro/m²

Property tax: Tenants are responsible for the proportional payment of property taxes (précompte immobilier/onroerende voorheffing). The property tax is paid on a “proxy” of the normal net average annual rental income of the premises (revenu cadastral/kadastraal inkomen). That “proxy” was last updated in 1975 (péréquation cadastrale/onroerende voorheffing), and has been indexed since 1991. As a result, the “revenu cadastral/onroerende voorheffing” is generally inferior to the real rental income. Also the “revenu cadastral/onroerende voorheffing” of newly constructed buildings is calculated by using the last estimates of 1975 as a reference.

Occupation tax: Besides the property tax, other taxes on office can be levied by communes and regions. Examples of these taxes are taxes on office space, taxes on the use of IT and taxes on parking spaces. These taxes are typical for Brussels communes. Regional and communal office occupation taxes are either administrated by the landlord or its agent or payable directly by the tenant.

VAT: Rents are generally not subject to VAT. With regard to construction, architectural, and letting fees, etc., VAT, presently standing at 21%, must be added. A landlord cannot recuperate VAT on construction costs, architect and agent fees.

Belgian office markets

With 12.7 million m², the Belgian office market is strongly dominated by Brussels, the Belgian and European capital. The office markets in other cities such as Antwerp, Ghent, Liège are generally much smaller in size, and focussed largely on local business activity or local administrations. As a result, most office lease transactions can be observed in Brussels, with Antwerp being the most active city in the regional markets.  In line with office demand, development of new office space is strong in most Belgian cities. While Brussels is predominately renovating its existing office stock, other cities such as Antwerp, Ghent, Leuven and Liège are in full expansion to attract new corporates. 

The Brussels office market

The presence of the E.U. and NATO is a powerful general stimulus to the Brussels economy. Demand for property remains strong not only from the Institutions themselves but also from delegations and associations, international lawyers, consultants, lobby groups and others with an interest in E.U. and international affairs. Brussels is host to the largest number of diplomatic missions in the world. Brussels counts over 1,000 international organizations, and 170 diplomatic representative offices.

Although the presence of European Institutions, NATO and of groups attached, affiliated or dependent upon the EU and NATO for their activities in Brussels is a major force, the market is not totally dominated by them. The European Union and NATO institutions occupy some 18% of the office space in Brussels with associated and dependent groups adding as much again.

The Belgian State presence is strong given the fact that Brussels has virtually all the major national ministries and administrations as well as a significant amount of space occupied by Flemish and to a lesser extent, Walloon government.

The corporate sector is also of major importance with a large range of Belgian, European and other international companies present in Brussels. Large international companies can be found all over the city, with large concentrations along the Avenue Louise, along the Brussels ringroad, and in the proximity of the National Airport in Zaventem.