Buying a House in the Netherlands, France or Abroad as a Belgian: Benefits, Risks and Tax Traps

Buying a house abroad: why Belgians are increasingly thinking about it

More and more Belgians are searching for property just across the border: a house in the Netherlands for affordability, a home in France (the Ardennes, Provence) for lifestyle reasons, or real estate in Germany or Luxembourg as an investment. The motivations are often very tangible: space, nature, lower energy consumption, or simply more house for your money.​

Buying abroad does not only bring opportunities, however - it also comes with legal, fiscal and practical pitfalls. This guide helps you get a clear picture of the main obstacles and advantages.

Can Belgians buy a property abroad?

In principle, yes. Within the EU, the free movement of capital applies, so as a Belgian you can buy a house in the Netherlands, France, Germany or Luxembourg without any special authorisation. Foreign buyers face no additional restrictions - no more than local owners do.​

That said, every border brings its own set of rules.

Buying a house in the Netherlands: what attracts Belgians

The Netherlands is, for many Belgians, the go-to cross-border destination to buy a property. The reasons:​

• Larger homes for a comparable price (especially in Friesland, Limburg and North Brabant)
• A stable property market and reliable legal frameworks
• A more developed mortgage market and lower interest rates
• No energy performance obligation as strict as in Belgium (energy labels are less stringent in the Netherlands until 2030)

How does buying in the Netherlands work for a Belgian?

What is different from Belgium:​

• No notary, but a transfer agent (estate agents handle the legal processing of the transaction themselves).
• No registration duty, but a transfer tax (overdrachtsbelasting): approximately 2% for first-time buyers and 6 to 10.4% for others, depending on the province and buyer profile.​
• Mortgage market: Dutch banks are not always willing to lend to foreigners, and certainly not for the full purchase price. Many require that you bring in at least 20% of your own funds.​

Tax implications for Belgians

This is the crucial part - and where many Belgians go wrong:

• Mortgage interest deduction: if you live in the Netherlands and hold a Dutch mortgage (and are therefore registered there), you can still benefit from interest deductibility. But as soon as you return to Belgium, that benefit falls away.​
• Property levies / real estate taxes: the Netherlands has no annual wealth tax, but you will pay - depending on the municipality - levies on the property itself.
• Income tax return: if you own the Dutch property as your own residence (rather than as a rented investment), you do not need to declare rental income. However, your registration in the Netherlands as a property owner may have consequences for your Belgian tax obligations.​

Important: before buying in the Netherlands, ask your tax adviser whether this has any impact on your overall tax situation as a Belgian resident - especially if you are still domiciled in Belgium.

Buying a house in France: luxury and space - but complex taxes

France attracts many Belgians, particularly for second homes. The reasons:​

• A lot of house for the money, especially in the Dordogne, Limousin or away from the Côte d'Azur
• A better climate and plenty of sunshine
• Quiet villages and more open space than in Belgium

The buying process in France

France works just like Belgium with a notary (notaire), so the process will feel familiar. The costs:​

• Transfer tax: approximately 5.7% of the purchase price (as part of the total "frais de notaire" of 7 to 8%)
• Notary fees: typically 2 to 3% (higher than in Belgium)
• Total acquisition costs: 7 to 8% (considerably more than in Belgium)​

Annual taxes in France

This is where things get more complicated:​

1. Taxe foncière (the owner's share of property tax): annual, depending on location, and can run to several thousand euros a year. In Paris, for example, it is far higher than in rural areas.​
2. Taxe d'habitation (occupier's portion): also annual, based on the rental value. You can avoid it by renting the property out or registering it as a holiday home.​
3. Wealth tax (IFI): France taxes worldwide real estate wealth once it exceeds €1.3 million. So if you own a French property on top of Belgian real estate, both may be taken into account.​

Rental income: 49% tax!

If you rent out your French property, things get very complicated:​

• Standard commercial rental: you pay 49% in taxes and social charges on gross rental income - unless you obtain classification as a gîte or chambre d'hôtes. In that case the rate drops to 5.6% (far more favourable), but achieving that status involves a complex administrative procedure.​

This makes a French second home very unattractive for generating passive rental income.​

Double taxation: Belgium + France

This is where a major risk lurks:

• Belgium taxes your worldwide income: your rental income from France is also taxed in Belgium (via the cadastral income system).
• France also taxes: rental income, the IFI wealth tax, and the taxe foncière.

France and Belgium have concluded a double tax treaty, but:​

• The treaty is old and not always clear-cut.
• Since 2023, a new Franco-Belgian treaty has been in force, which has amended certain provisions relating to pensions and wealth taxation.

The result: you may end up being taxed in both countries. Make sure a tax adviser works this out for you before you commit.

Taking out a mortgage abroad: much harder than you think

This is a significant practical obstacle:​

• Dutch banks: generally do not grant mortgages to Belgians, and certainly not on the full purchase price. Some require that you already live and work in the Netherlands.​
• French banks: do lend to foreigners, but on stricter terms and at higher interest rates (+0.5 to 1% compared with local borrowers).
• Belgian banks: some will finance Belgian property across the border, but not foreign property.

In practice: many Belgians buy property abroad by saving first and purchasing outright, or by arranging financing through their own bank on preferential terms.​

Double tax treaties: not an automatic safeguard

This is crucial:​

• Belgium and France have a double tax treaty, but it does not automatically prevent double taxation - it merely provides a framework.
• Netherlands-Belgium treaty: considerably clearer, but here too the details must be properly understood.
• Cross-border workers: if you work in the Netherlands and live in Belgium (or vice versa), you need to know with certainty in which country you pay your taxes - there are sometimes favourable arrangements available.

Always have this analysed in advance by a tax adviser who specialises in cross-border real estate. It could save you tens of thousands of euros in tax further down the line.​

Practical checklist: buying property abroad yourself?

Before you take the step:​

• ✓ Consult a tax adviser in both countries (essential!).
• ✓ Ask a local estate agent or notary about regulations and local customs.
• ✓ Sort out mortgage financing in advance (far more difficult than in Belgium).
• ✓ Understand the annual costs and taxes (not just the purchase price).
• ✓ Check the double tax treaty as it applies specifically to your situation.
• ✓ Be cautious about rental income (very unfavourable in France).
• ✓ Make sure you have proper legal protection (agent, notary, legal adviser).

The Netherlands as an investment for Belgians: why it can be interesting

If you are considering investing in the Netherlands:​

• No annual wealth tax (no yearly levy on the property's value)
• Stable market
• Less stringent energy performance regulations
• Sometimes lower prices than in Belgium (outside the Randstad metropolitan area)

But:​

• Mortgage financing is harder to obtain as a foreigner
• Rental yields are generally lower (and Belgians pay tax in both countries)​
• The legal process is different (no notary - a transfer agent handles proceedings)

For a purely investment-focused purchase in the Netherlands as a Belgian, the yield and tax burden are not always more attractive than those of Belgian real estate.​

Conclusion: buying abroad is possible - but it takes preparation

Buying a house abroad can be both advantageous and highly complex, depending on where, how and why you do it. The Netherlands offers practical advantages (larger homes, better mortgage conditions for residents); France tempts with space and lifestyle but brings complex taxation with it.

The critical factor: tax planning and legal preparation. Invest in both from the outset, and avoid suddenly discovering that you owe tax in both Belgium and abroad - that can be financially devastating.

Would you like to better understand what property in your own region is worth and how the Belgian real estate market works? Start with a free valuation of your current property and compare estate agents with international experience.

Property across the border is an interesting option - but only with thorough preparation and the right advisers.