The full cost picture
Hidden costs represent 25 to 40% of annual rent. Major items: registration duties (12-12.5% at purchase), property tax (annual), insurance, maintenance (5% of rent), vacancy (5-10% of rent), reletting costs and potential EPC compliance works. Always calculate net yield including all these costs.
| Cost category | When | Typical amount |
|---|---|---|
| Registration duties | At purchase | 12-12.5% of price |
| Notary fees | At purchase | ~2% of price |
| Property tax | Annual | 500-2,000 EUR |
| Insurance | Annual | 250-500 EUR |
| Maintenance provision | Annual | 5% of rent |
| Vacancy provision | Annual | 5-10% of rent |
| Reletting costs | Per tenant change | 500-1,500 EUR |
| EPC compliance | One-time | 5,000-30,000 EUR |
Annual cost breakdown example
For a property generating 10,000 EUR/year in rent:
| Cost | Amount | % of rent |
|---|---|---|
| Property tax | 1,200 EUR | 12% |
| Insurance | 350 EUR | 3.5% |
| Maintenance provision | 500 EUR | 5% |
| Vacancy provision (5%) | 500 EUR | 5% |
| Reletting costs (amortised) | 300 EUR | 3% |
| Management (software) | 120 EUR | 1.2% |
| Total annual charges | 2,970 EUR | 29.7% |
| Net rent | 7,030 EUR | 70.3% |
Budget 30% of gross rent for charges as a rule of thumb. If your investment still makes sense at 70% of gross rent, it is likely a solid deal. Use our profitability simulator for a precise calculation.
How to budget correctly
At purchase (one-time costs):
- Registration duties: 12-12.5% of purchase price
- Notary fees: ~2% of purchase price
- Possible renovation: variable (get quotes before purchasing)
- EPC improvement works: if the property has a poor EPC label
Annually (recurring costs):
- Property tax: check the commune rate before purchasing
- Insurance: mandatory for landlords (fire, civil liability)
- Maintenance: budget 5% of annual rent minimum
- Vacancy: 5% for stable markets, 10% for student housing
Per tenant change (occasional costs):
- Reletting: advertising, viewings, lease drafting
- Inventory of fixtures: entry and exit
- Repainting/cleaning between tenants
Regional specifics
Brussels-Capital Region
Brussels has higher property taxes and co-ownership charges. EPC compliance requirements under the Ordinance of 27 July 2017 may require significant investment. Registration duties: 12.5%.
Wallonia
Wallonia has moderate charges overall. The Decree of 15 March 2018 applies without adding significant costs. Registration duties: 12.5%. Property tax varies significantly by commune.
Flanders
Flanders has increasingly strict EPC renovation obligations under the Flemish Housing Rental Decree of 9 November 2018. Budget for potential energy renovation. Registration duties: 12%.
Registration duties: Code of Registration Duties (regional rates). Property tax: CIR 1992, art. 249 ff. Insurance obligation: regional rental legislation.