Indemnities depend on who terminates and why
A tenant who terminates at the end of a triennial period (3, 6, 9 years) with 6 months’ notice owes no indemnity. A landlord who refuses lease renewal must pay an eviction indemnity of 1 to 3 years of rent, depending on the circumstances. Certain grounds for refusal exempt the landlord from paying the indemnity.
The eviction indemnity (indemnite d’eviction) is a key protection for commercial tenants. It compensates the tenant for the loss of their business location, clientele and goodwill built up over the lease period.
Eviction indemnity amounts
When the landlord refuses to renew the commercial lease, the indemnity depends on the reason:
| Ground for refusal | Indemnity amount |
|---|---|
| No specific grounds | 1 year of rent |
| Refusal in favour of a different tenant | 2 years of rent |
| Change of business affecting the tenant’s clientele | 3 years of rent |
| Landlord’s personal occupation | No indemnity (if carried out within 6 months) |
| Demolition/reconstruction | No indemnity (if permits obtained and works started) |
| Serious breach by tenant | No indemnity |
| Tenant’s offer of conditions not accepted | No indemnity (if landlord’s counter-offer was reasonable) |
The indemnity amounts are statutory minimums. The lease can provide for higher indemnities but not lower ones.
If the landlord invokes personal occupation or reconstruction but fails to carry through within the specified timeframe, the tenant can claim the eviction indemnity retroactively plus potential damages.
Exceptions to eviction indemnity
The landlord is exempt from paying an eviction indemnity in several situations:
Personal occupation: the landlord or a close family member (spouse, children, parents) intends to occupy the premises. The occupation must begin within 6 months and last at least 2 years.
Reconstruction or major works: the landlord plans to demolish and rebuild or carry out major renovations. Planning permits must be obtained and works must begin within 6 months.
Serious breach: the tenant has committed a serious breach of the lease obligations (persistent non-payment, unauthorised changes, etc.).
Mutual agreement: both parties agree to end the lease without indemnity (this must be negotiated and signed as a separate agreement).
Tenant’s termination
The tenant owes no indemnity when terminating at the end of a triennial period with 6 months’ notice. If the tenant terminates during a triennial period (before the 3rd, 6th or 9th year), the lease generally provides for contractual indemnities.
BailBelgique calculates your potential eviction indemnity based on your lease terms and tracks the renewal request deadlines.
Regional specifics
The Act of 30 April 1951 on commercial leases is federal legislation. The eviction indemnity rules apply uniformly across Brussels, Wallonia and Flanders with no regional variation.
Act of 30 April 1951 on commercial leases, Art. 16 — Text on Justel. Governs eviction indemnities for commercial leases.