The principle: a minimum of 3 years’ rent
The eviction compensation is the financial compensation owed to the commercial tenant when the landlord refuses to renew the lease without an exempting ground. It is set at 3 years’ rent by article 25 of the law of 30 April 1951 on commercial leases.
When is the compensation due
The compensation is due when the landlord refuses the renewal of the commercial lease without being able to invoke a legal ground for exemption. The tenant must have requested the renewal in the prescribed form and within the statutory deadlines (between the 18th and 15th month before the lease expires).
Who pays
It is the landlord who pays the eviction compensation to the tenant. In the event of a sale of the property, the new owner assumes the obligation if the lease is transferred.
Calculation and components of the compensation
The lump-sum compensation (base)
The base amount is 3 years’ rent at the rate in force at the time of the refusal to renew. This lump-sum amount is owed without the tenant having to prove any loss.
The additional compensation
The tenant may claim compensation exceeding 3 years’ rent if they prove actual and additional loss:
| Component | Description | Evidence required |
|---|---|---|
| Loss of clientele | Value of the lost business | Accounting expertise |
| Moving costs | Cost of relocating the business | Quotes / invoices |
| Unamortised investments | Fitting-out works carried out | Invoices + depreciation schedule |
| Loss of profits | Lost income during the transition | Financial statements |
The additional compensation is not automatic. The tenant must prove each item of loss with figures before the justice of the peace. A court-appointed expert valuation is often ordered.
A commercial lease at 2,000 EUR/month with a business valued at 150,000 EUR. Base compensation = 72,000 EUR (3 x 24,000 EUR). Total potential compensation if loss of clientele is proven = 72,000 + additional loss.
Grounds for landlord exemption
The landlord is not required to pay the eviction compensation in the following cases (art. 16 of the law):
- Personal occupation: the landlord or a close relative occupies the premises within 6 months and for at least 2 years
- Reconstruction or major works: works making commercial use impossible (minimum cost of 3 years’ rent)
- Serious fault by the tenant: breach of lease obligations (unpaid rent, damage to premises)
- Offer of equivalent premises: the landlord offers premises of equivalent value at their expense
- Cessation of activity: the tenant no longer operates the business on the premises
The ground of personal occupation is the most common. But beware: if the landlord does not actually occupy the premises within the required timeframe, the tenant may claim the eviction compensation retroactively plus damages.
What if the tenant refuses to leave?
If the tenant contests the refusal to renew, the justice of the peace decides the matter. Proceedings can take 6 to 18 months. The tenant remains in the premises during the proceedings.
Regional specificities
Brussels-Capital Region
The federal law of 30 April 1951 applies in full. The Brussels pop-up lease (ordinance of 25 April 2019) does not entitle the tenant to eviction compensation, as it is not subject to the commercial leases act.
Wallonia
Same rules as the federal level. There is no region-specific legislation on commercial leases at present.
Flanders
The decree of 17 June 2016 on the Flemish pop-up lease also excludes eviction compensation for short-term commercial leases (max 1 year).
Law of 30 April 1951 on commercial leases, art. 16, 25 and 26 — Text on Justel.