The landlord can refuse but only on legal grounds
Yes, the landlord may refuse the renewal of a commercial lease, but only by invoking one of the limited grounds set out in the Law of 30 April 1951. Depending on the ground, the landlord may owe an eviction indemnity of up to 3 years of rent. The tenant must have requested renewal by registered letter or bailiff’s writ between 18 and 15 months before the lease expires.
Commercial lease law in Belgium offers strong protection to commercial tenants, who build their business on the location. The tenant has a right to request up to three successive renewals of 9 years each. The landlord’s right to refuse is therefore limited and comes with financial consequences.
The landlord must respond to the renewal request within 3 months. Failure to respond is deemed acceptance of the renewal under the same conditions. Any refusal must state the specific ground relied upon and, where applicable, offer the indemnity.
Grounds for refusing renewal
| Ground | Eviction indemnity | Conditions |
|---|---|---|
| Personal occupation | 1 year of rent | The landlord or close relative must actually occupy within 6 months |
| Reconstruction | 1 year of rent | Works must cost at least 3 years of rent |
| Serious breach by tenant | None | Proven grave default (non-payment, serious damage) |
| Higher offer by third party | 3 years of rent (unless tenant matches) | The tenant has a right to match the offer |
| Change of business destination | Varies | Landlord wants to use premises for a different purpose |
| Without any specific ground | 3 years of rent | Maximum indemnity applies |
The landlord must exercise the refusal in good faith. If the stated ground turns out to be false (e.g., the landlord claims personal occupation but resells the property), the tenant can claim additional damages.
As a commercial tenant, mark the deadline window (18 to 15 months before expiry) in your calendar. Missing this window means losing the right to renewal, regardless of how long you have occupied the premises.
The eviction indemnity explained
The eviction indemnity compensates the commercial tenant for the loss of their location and clientele. The standard amounts are:
- 1 year of rent — for personal occupation or reconstruction
- 2 years of rent — when the tenant also loses their clientele
- 3 years of rent — for refusal without specific grounds or when a third-party offer is not matched
These amounts can be increased by the court if the tenant proves additional damages (loss of goodwill, moving costs, reinstatement of the business elsewhere). The indemnity is calculated based on the rent at the time of expiry.
If the landlord does not actually carry out the stated purpose within the required timeframe, the tenant can claim the maximum indemnity of 3 years of rent, regardless of the original ground invoked.
Regional specifics
Brussels-Capital Region
Commercial lease law is a federal matter under the Law of 30 April 1951 and applies uniformly across Belgium. In Brussels, the justice of the peace of the district where the property is located has jurisdiction over commercial lease disputes. The high commercial rents in Brussels make eviction indemnities particularly significant.
Walloon Region
The same federal law applies in Wallonia. Commercial lease disputes are handled by the local justice of the peace. Walloon municipalities may have specific planning rules that affect the use of commercial premises.
Flemish Region
The federal Law of 30 April 1951 applies equally in Flanders. Flemish courts interpret the law consistently with the other regions. Note that the Flemish residential lease decree (Woninghuurdecreet) does not apply to commercial leases.
Law of 30 April 1951 on commercial leases, art. 13-16 (renewal procedure and grounds for refusal) — Text on Justel. Federal law, uniform across all regions.