Sometimes, we fall in love with a place where we spent holidays and wish that we could stay there a few more days or even a few weeks. By acquiring a second home with Engel & Völkers, this dream can become a reality.
Do you want to invest in a holiday home? Would you like to know how to buy a second home on the Belgian coast, in the Ardennes or a foreign country? Are you tempted by a second home? Here is all the information you need for a stress-free purchase.
Today, an increasing number of Belgians are choosing to invest in a second home and for good reason. Buying a second home is certainly about having a good time in the sun, far from the constraints of everyday life, but it is also about making a long-term investment at a time when savings accounts are not as lucrative as before.
There are many benefits to such a purchase but it is not advisable to rush and sign a bill of sale too quickly. If you are planning to buy a second home, it is essential to be well organized and to make a reliable estimate of the costs involved.
A second home is frequently smaller and less luxurious than the main dwelling. If you opt for a holiday home in Belgium, you must pay administrative costs and agency fees in addition to the purchase price.
The tax deductions that usually apply for the purchase of a principal residence are not valid for the purchase of a second property. Your purchase is, therefore, subject to full rates, such as 10% in Flanders and 12.5% in Wallonia and Brussels. You should also add administrative costs and agency fees which represent approximately 2.5% of the purchase price.
If the secondary residence is located abroad, the various regulations must be taken into account. It is imperative to find out about these provisions in advance by taking advice from your estate agent, Engel & Völkers.
Just as with primary residences, Belgian second homes are subject to property tax. The allowances for households with dependent children or "modest" dwellings do not apply to second homes. Your second home in Belgium must be included in the tax return as it is taxed and you must enter the cadastral income, which serves as the basis of calculation for the tax authorities. These cadastral revenues are increased by 40% and the amount is added to other taxable income. According to the tax situation, it will be necessary to pay between 45 and 50% of taxes on these "new" incomes.
It is also necessary to take into account various taxes and local charges such as the tax on household waste and the tax on second homes.
If the second dwelling is abroad, it must also be declared on the tax return, when it is the real rental value or the actual rental income that will represent the tax base. Not to mention any local taxes.
A second residence must necessarily be maintained and is necessary to retain and increase its value. You must take into account the cost of home insurance but also the property's maintenance costs; as well as gas, water and electricity and Wifi...
If the property is an apartment, it is necessary to foresee the expenses related to the maintenance of the common parts of the building (elevator, green spaces ...)
Contact the nearest Engel & Völkers agency and discover our extensive catalogue of real estate in Belgium and around the world.