Living with a Homeowner in Belgium - Legal & Financial Guide

The Short Answer

Living with someone who owns their home (e.g. partner, parent, family member) comes with legal and financial complexities:

• No automatic inheritance rights (unless legally married)
• No property rights over the home (unless registered)
• Tax situations can become complicated
• On death: you can lose everything (without a will)
• Relationship breakdown = risk of eviction

This guide explains what your rights are, how to protect yourself, and what you need to know about taxation and inheritance law.

1. The Legal Situation - What Are Your Rights?

Scenario 1: Married to the Owner

You Have Rights!

• ✅ Legal inheritance rights (automatic)
• ✅ Property rights (possible registration)
• ✅ Protection under marriage law
• ✅ Pension splitting (on divorce)

On Death: You inherit automatically (unless a will states otherwise)

Scenario 2: Cohabiting (Unmarried)

You Have VERY FEW Rights!

• ❌ No inheritance rights (without a will!)
• ❌ No property rights
• ❌ No legal protection
• ❌ On death: you can lose everything

This Is RISKY!

Scenario 3: Living with a Parent or Family Member

Situation Dependent:

• If you are registered (official address): some protection
• If you are not registered: no protection
• On inheritance: depends on the will

WARNING: High risk without a will!

2. Legal Protection - What You Should Do

Option 1: Marriage (Maximum Protection)

This Provides Full Legal Protection:

• Automatic inheritance rights
• Legal property rights
• Pension splitting
• Tax advantages (as a married couple)

Costs: Notary €300-€600 (ceremony costs separate)

Timing: Months of preparation

Option 2: Cohabitation Agreement (Intermediate Protection)

This Covers:

• Inheritance rights (included in the agreement)
• Property division
• Division of debts
• Household repayments
• On separation: clarity assured

Costs: Notary €500-€1,200

This Is the SMART Solution for Unmarried Cohabitants!

Option 3: A Will (Essential!)

The Owner Must Draw Up a Will:

• Specifies who inherits what
• Can protect you (if desired)
• Clarity for heirs
• Prevents family disputes

Costs: Notary €200-€500

This Is ESSENTIAL if You Are Not Married!

Option 4: Property Transfer (Ultimate Protection)

The Owner Can Transfer the Property Fully or Partially to You:

• By gift: you become the owner
• By sale (formal): you buy a share
• By will: after death

Costs: Notary €1,500-€3,000 + gift tax

This Is Permanent Protection!

3. Inheritance Law - What Happens on Death?

This Is CRUCIAL to Understand!

Scenario 1: Married, No Will

Legal Order of Succession:

1. Partner (you): 50% of the property
2. Children: 50% of the property (divided)
3. Parents: (Only if there are no children)

You Inherit Automatically!

Scenario 2: Unmarried, No Will

Legal Order of Succession:

1. Children: 100% of the property
2. Parents: (Only if there are no children)
3. Brothers/Sisters: (Only if there are no parents or children)
4. YOU = NOTHING! ❌

You Inherit NOTHING Without a Will!

WARNING: This Is Extremely Risky!

Scenario 3: Will in Place

The Will Decides Everything:

• "I leave my property to my partner"
• "I leave my property to my children"
• "I leave my property to my brother"
• Etc.

A Will Overrides the Legal Order of Succession!

4. Practical Scenarios - What Can Go Wrong?

Scenario 1: Partner Dies, No Will, Unmarried

Situation:

• You have lived with your partner for 10 years
• Partner dies (no will)
• Partner had a child from a previous relationship

Legal Order of Succession:

• Child: 100% of the property
• You: 0% (you are not married)

Consequence:

• The heir child can evict you from the home
• You are left homeless
• All of the partner's assets go to the child

This Is a NIGHTMARE!

Scenario 2: Partner Dies, Will in Place, Unmarried

Situation:

• You have lived with your partner for 10 years
• Partner dies (WITH a will!)
• The will states: "I leave everything to my partner"

Consequence:

• You inherit everything (property, money, possessions)
• Legal heirs may challenge this
• But the will is your protection

This Is SAFE!

Scenario 3: Parent Dies, You Live with Them

Situation:

• You (an adult) live with a parent
• The parent dies without a will
• The parent had other children

Legal Order of Succession:

• All children (equally): 100% of the property
• You: depends on whether you are a child of the deceased

Consequence:

• Other children can force the sale of the property
• You must move out
• You lose your home

HIGH RISK!

5. Taxation - Do You Have to Pay Tax?

This Depends on the Situation.

Scenario 1: You Live There and Pay Rent

Tax Situation:

• Tenant pays rent (normal situation)
• Owner receives rental income (taxable)
• No inheritance tax (you are not inheriting)
• No property taxes

This Is a Normal Rental Situation!

Scenario 2: You Live There Free of Charge (or Partially)

Tax Situation:

• Owner: may have a "benefit in kind" (taxable in some cases)
• You: may benefit from tax advantages (housing cost deduction)
• Income tax: depends on the situation

This Can Be More Complex!

Scenario 3: You Inherit the Property (On Death)

Taxation:

Inheritance tax:

• Married (partner inherits): low - in Flanders, rates start at 3% for partners and direct heirs
• Child inherits: low - 3% in Flanders
• Unrelated person inherits: HIGH - 30% in Flanders

Example:

• You (unrelated / partner without a will): property worth €300,000
• Inheritance tax (30%): €90,000
• You receive net: €210,000

This Is Significant!

Scenario 4: You Receive a Gift of the Property (During the Owner's Lifetime)

Taxation:

Gift tax:

• Annual exemption: €27,000 (Flanders)
• Above that: 3%-27% gift tax

Example:

• Partner gifts property worth €400,000
• Exemption: €27,000
• Gift tax on €373,000: approx. €30,000

This Is Considerable!

6. Practical Measures - How to Protect Yourself

Measure 1: Have a Will Drawn Up (Partner/Owner)

The owner must:

1. Contact a notary
2. Draw up a will
3. State: "I leave my property to [your name]"
4. Sign officially

Costs: €200-€500
Timing: 1-2 weeks

This Is the Most Critical Step!

Measure 2: Draw Up a Cohabitation Agreement

The two of you:

1. Contact a notary
2. Draw up the agreement
3. Cover: inheritance rights, property, debts
4. Sign officially

Costs: €500-€1,200
Timing: 2-3 weeks

This Provides Certainty!

Measure 3: Official Address Registration

Make Sure You:

1. Are registered at the property address (municipal administration)
2. This provides some legal protection
3. Proof of residence

Costs: Free
Timing: 1 day

Measure 4: Written Agreements

Even Without a Notary:

• Draw up written agreements
• State what you pay and what you receive
• Both parties sign
• Keep a copy

This Is NOT Legally Binding, But It Is Evidence of Intent!

Measure 5: Insurance

Life Insurance:

• Partner takes out a policy for a certain amount
• On death: you receive the payout
• This covers inheritance tax, notary costs

Costs: €20-€50/month
This Is SMART!

7. If Relationship Problems Arise - What Happens?

Scenario 1: Separation/Break-up (Unmarried)

Without an Agreement:

• The owner can evict you
• You have no property rights
• You can quickly find yourself homeless

With a Cohabitation Agreement:

• The agreement determines what happens
• Possible compensation
• Transition period (sometimes)

THAT IS WHY an Agreement Is Essential!

Scenario 2: Divorce (Married)

With Marriage:

• Legal protection
• Pension splitting
• Property division (complex)
• Notary/court decides

This Is Much Better Protected!

Scenario 3: Conflicts with Family (Parent)

If You Live with a Parent:

• No automatic rights
• The parent can evict you
• No legal protection (without a will)

This Is RISKY!

8. Practical Tips - How to Proceed

Tip 1: Talk About a Will

A difficult subject, but essential:

• "What happens if you die?"
• "Do you want me to inherit your property?"
• "Should we put it in a will?"

This Brings Clarity!

Tip 2: Draw Up the Will/Agreement as Early as Possible

Do not wait until:

• Illness
• A crisis
• An argument

Acting early = avoiding stress!

Tip 3: Make Sure You Are Officially Registered

• Make sure you are registered at the address (municipality)
• This provides some protection
• Proof of residence

Free, but Important!

Tip 4: Keep Track of Payments

• Make sure rent payments are traceable
• Bank transfers (not cash)
• This proves your contribution

This Could Be Useful Later!

Tip 5: Seek Legal Advice

• Consult a notary or lawyer
• Explain your situation
• Get tailored advice

Costs: €100-€300 consultation
This Could Save You Thousands Later!

9. Special Situations

Situation 1: Parent and Adult Child (in the Same Home)

Risks:

• The child has no rights
• The parent can evict the child
• On inheritance: depends on the will

Solution:

• Draw up a will
• Register the child
• Possibly transfer part of the property

Situation 2: Partner with Children from a Previous Relationship

Risks:

• Children have inheritance rights
• The partner can protect you (by will)
• Conflicts after death are likely

Solution:

• Very specific will
• Possibly a cohabitation agreement
• Clear distribution of the estate

Situation 3: Live-in Carer (Parent/Sick Person)

Situation:

• You care for the owner
• The owner is ill or elderly
• You expect to inherit

Risk:

• The owner can change their will
• Family can challenge it
• No guarantees

Solution:

• Have the will drawn up now
• Written agreements
• Possibly a partial transfer of the property

10. Summary: Living with a Homeowner

Key Points:

1. No Automatic Rights (Unless Married)

• Unmarried cohabitants: no inheritance rights
• Married partners: legal inheritance rights
• Family: depends on the will

1. A Will Is ESSENTIAL

• Without a will: you inherit nothing
• With a will: you are protected
• Costs: €200-€500 (very affordable!)

1. A Cohabitation Agreement Is SMART

• Covers inheritance rights
• Covers property
• Prevents problems
• Costs: €500-€1,200

1. Inheritance Tax

• Partner/Child: 3% (Flanders)
• Unrelated person: 30% (Significant!) (Flanders)
• Gift: 3%-27% (depending on exemption) (Flanders)

1. If Problems Arise:

• No agreement = you have no rights
• With an agreement = you are protected
• A notary is your best friend!

1. Practical Measures:

• Will (owner)
• Cohabitation agreement (both parties)
• Official address registration
• Traceable payments
• Legal advice

Golden Rule: Will + Agreement = No Problems. Nothing at All = Plenty of Risks!

Next Step

Living with someone who owns their home?

1. Talk about a will
2. Seek legal advice
3. Draw up a will or agreement
4. Make sure you are officially registered
5. Make sure your payments are traceable

Good luck!