Gross and net yield formulas
Gross yield = (Annual rent / Total purchase price) x 100. Net yield = ((Annual rent - Annual charges) / Total purchase price) x 100. The difference is typically 1 to 2 percentage points in Belgium. Gross yield serves for quick comparison; net yield reflects actual profitability.
| Formula | Calculation | Use |
|---|---|---|
| Gross yield | Annual rent / Total price x 100 | Quick comparison |
| Net yield | (Annual rent - Charges) / Total price x 100 | Investment decision |
Total purchase price includes: property price + notary fees (~2%) + registration duties (12-12.5%).
Step-by-step calculation
Example: apartment in Ghent, purchase price 250,000 EUR
- Total cost: 250,000 + 5,000 (notary) + 30,000 (registration 12%) = 285,000 EUR
- Annual rent: 900 EUR x 12 = 10,800 EUR
- Gross yield: 10,800 / 285,000 x 100 = 3.79%
- Annual charges: property tax (1,200) + insurance (350) + maintenance (540) + vacancy (540) = 2,630 EUR
- Net yield: (10,800 - 2,630) / 285,000 x 100 = 2.87%
Always calculate yield on the total cost (including all fees), not just the property price. This gives a realistic picture of your investment return. Use our profitability simulator for an instant calculation.
Yield benchmarks by area
| Area | Gross yield | Net yield |
|---|---|---|
| Brussels centre | 3-4% | 2-3% |
| Brussels periphery | 4-5% | 3-4% |
| Ghent, Antwerp, Leuven | 3.5-5% | 2.5-4% |
| Namur, Mons, Charleroi | 5-8% | 3.5-6% |
| Student cities (kots) | 5-8% | 3-5.5% |
Higher yields often come with higher management intensity and risk. Diversification across areas and property types mitigates this risk.
Regional specifics
Brussels-Capital Region
Registration duties are 12.5%, which increases the total cost and reduces gross yield. The Ordinance of 27 July 2017 may require compliance costs that further reduce net yield.
Wallonia
Registration duties are 12.5%. Walloon cities offer the highest yields in Belgium thanks to lower purchase prices. The Decree of 15 March 2018 does not significantly impact yield calculations.
Flanders
Registration duties are 12% for investment properties. The Flemish Housing Rental Decree of 9 November 2018 may require energy renovation costs that impact net yield.
Registration duties: Code of Registration Duties. Property tax: CIR 1992, articles 249 ff. Rental income taxation: based on indexed cadastral income for private individuals (CIR 1992, art. 7-13).