Office rental in Belgium: rules and applicable regime
The specific rules for office rental in Belgium. Commercial lease or common law lease, VAT option, registration and recoverable charges.
Commercial lease or common law lease: which regime for an office
The first question when letting an office is the applicable legal regime. Contrary to popular belief, office rental does not automatically fall under the commercial lease.
The distinguishing rule
The law of 30 April 1951 on commercial leases applies only to the letting of premises used for commercial or craft activities, with direct and principal contact with the public on the rented premises.
| Activity | Applicable lease | Rationale |
|---|---|---|
| Shop, restaurant, hairdresser | Commercial | Direct contact with the public |
| Lawyer’s office with client reception | Commercial (debatable) | Direct contact possible |
| Closed office (IT, internal accounting) | Common law | No public contact |
| Co-working space | Common law (or commercial if open to public) | Depends on the configuration |
| Medical practice | Commercial | Direct reception of patients |
The distinction is crucial. The commercial lease grants the tenant significant rights (minimum 9-year duration, right of renewal, eviction compensation) that a common law lease does not provide. A landlord who applies the wrong regime is exposed to challenges.
For your residential leases, use our lease generator. For an office lease, a bespoke contract is recommended.
The VAT regime for office rental
The principle: VAT exemption
By default, property rental is VAT-exempt in Belgium. The landlord does not charge VAT on the rent and cannot deduct VAT on their investments.
The VAT option for new buildings
Since 1 January 2019, the landlord can opt for VAT (21%) if:
- The building is new (built or fundamentally renovated after 1 October 2018)
- The tenant is VAT-registered and uses the property for their economic activity
The benefit of the option
| Scenario | Without VAT | With VAT |
|---|---|---|
| Construction investment | 500,000 EUR incl. VAT | 413,223 EUR excl. VAT + 86,777 EUR recoverable VAT |
| Monthly rent | 3,000 EUR | 3,000 EUR + 630 EUR VAT |
| Impact on VAT-registered tenant | - | VAT deductible by the tenant |
| Impact on landlord | No recovery | Recovery of 86,777 EUR |
For a new office building, the VAT option represents a significant saving for the landlord. The VAT-registered tenant deducts the VAT on the rent, which neutralises the additional cost for them.
The VAT option commits the landlord for a 25-year period. If the property changes use (office to residential) or the tenant is no longer VAT-registered, the landlord must repay part of the deducted VAT, calculated pro rata for the remaining years.
VAT on older buildings
For buildings constructed before October 2018, the VAT option is not available. The rent remains VAT-free. However, if the landlord carries out a fundamental renovation (cost exceeding 60% of the building value excluding land), the property can be considered new.
Charges and property tax
Recoverable charges
Under a common law lease (offices), contractual freedom allows a large share of charges to be passed on to the tenant:
| Charge | Recoverable | Conditions |
|---|---|---|
| Property tax | Yes (if provided in the lease) | Explicit clause |
| Common charges (co-ownership) | Yes | Per the regulations |
| Fire insurance | Yes (if provided) | Explicit clause |
| Regional tax (Brussels) | Yes (if provided) | Explicit clause |
| Major maintenance (roof, facade) | Not recommended | Landlord’s legal obligation |
Property tax
Property tax is legally payable by the landlord. However, in office leases, it is very common to pass it on to the tenant via a specific clause. This practice is accepted by case law under common law leases.
For an office in Brussels, property tax is higher than in other regions due to municipal additional centimes. It can represent 1 to 2 months’ rent per year.
Charge statements
Prepare a detailed annual charge statement for passed-on charges, with supporting documents (invoices, tax assessments). The tenant has the right to inspect the supporting documents.
To automate the calculation and sending of charge statements, our rental management platform offers a dedicated module.
Practical aspects of office rental
Lease registration
The office lease must be registered with the FPS Finance via MyRent. For common law leases, the registration duty is 0.2% of the total rent and charges over the lease duration (minimum 50 EUR).
The EPC
The EPC certificate is mandatory for office rental in all three regions. Offices over 500 m2 are subject to a specific EPC (“tertiary EPC”) more demanding than the residential EPC.
The property inventory
The property inventory is not legally mandatory under a common law lease, but is very strongly recommended. In the absence of a property inventory, the tenant is presumed to have received the property in good condition (article 1731 of the Civil Code).
Lease duration
Under a common law lease, the duration is freely set by the parties. The most common durations for offices:
| Duration | Frequency | Tenant profile |
|---|---|---|
| 3 - 6 - 9 years | Very common | SMEs, liberal professions |
| 1 - 3 years | Common | Start-ups, temporary projects |
| 9 - 18 - 27 years | Rare | Large companies, institutional |
Include an early termination clause allowing the tenant to vacate with 6 months’ notice and a decreasing compensation. This flexibility is an important letting argument for SMEs.
For questions related to mixed-use building management (offices + dwellings), see our article on mixed-use building management.
Conclusion: a flexible but demanding framework
Office rental in Belgium offers great contractual freedom, especially under common law leases. The landlord can pass on most charges, opt for VAT on new buildings and freely negotiate the duration.
Key points to remember:
- Common law leases apply to most offices (no direct public contact)
- The VAT option is available for new buildings with a VAT-registered tenant
- Property tax can be passed on to the tenant (clause in the lease)
- Registration is mandatory (0.2% of total rent)
- Contractual flexibility is an asset of common law leases
To manage your offices, centralise leases, charges and payments in our rental management platform. Also find our lease templates for residential leases.
Frequently asked questions
-
An office used exclusively by the tenant for their activities (without direct contact with customers) falls under common law, not the commercial lease. The 1951 commercial lease law applies only if the tenant carries out a commercial or craft activity with direct public contact on the premises. An accountant's, architect's or lawyer's office therefore generally does not fall under the commercial lease.
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Yes, since 2019, the landlord can opt for the application of VAT (21%) on the rental of new offices (built or fundamentally renovated after 1 October 2018). The tenant must be a VAT-registered entity. This option allows the landlord to recover the VAT on the construction or renovation of the property.
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Property tax is legally payable by the landlord. However, in office leases, it is common to include a clause passing property tax on to the tenant. This clause is valid under common law leases. The amount passed on must be clearly defined in the lease.
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