Right to eviction compensation
Yes. Under the commercial lease law of 30 April 1951, a commercial tenant refused lease renewal may claim eviction compensation ranging from 1 to 3 years’ rent depending on the grounds for refusal. This compensation aims to offset the loss of clientele and the costs of relocation.
The commercial lease law grants tenants a right to renewal after each 9-year period. If the landlord refuses renewal, they may owe compensation:
| Ground for refusal | Compensation |
|---|---|
| Personal occupation by landlord or close family | 1 year’s rent |
| Different commercial activity by landlord | 2 years’ rent |
| Refusal without serious grounds | 3 years’ rent |
| Serious grounds (tenant’s fault) | No compensation |
| Major renovation making premises unusable | 1 year’s rent |
Calculating and claiming compensation
The compensation is calculated on the last rent paid, including charges if they form part of the rent. Additional compensation may be awarded by the court if the tenant proves that the actual loss exceeds the statutory amount. The tenant can also claim removal costs.
Practical considerations:
- The compensation aims to cover loss of clientele (fonds de commerce / handelsfonds)
- It also covers relocation costs and business disruption
- The court may increase the statutory amount if the tenant demonstrates higher actual losses
- The landlord must pay the compensation before the tenant vacates
- If the landlord does not implement the stated reason within the required timeframe, the tenant can claim additional damages
The tenant must request lease renewal between the 18th and 15th month before the lease expires, via bailiff’s notice or registered letter. Missing this deadline results in losing the right to renewal and potentially the right to compensation.
Conditions and procedure
To be entitled to eviction compensation, the commercial tenant must meet several conditions:
- Valid commercial lease: the premises must be used for direct contact with the public (retail, restaurant, office receiving clients)
- Timely renewal request: between 18 and 15 months before lease expiry
- Correct form: by bailiff’s notice or registered letter, stating the proposed conditions
- No tenant fault: the refusal must not be based on the tenant’s serious breach of obligations
The landlord must respond within 3 months. If they refuse or do not respond, the tenant can apply to the justice of the peace within 3 months of the refusal (or the expiry of the response period).
The procedure before the justice of the peace can result in either the granting of renewal under adjusted conditions or the award of eviction compensation.
Regional specificities
Brussels-Capital Region
Since the 6th State reform, commercial lease law is a federal matter. The law of 30 April 1951 applies uniformly across Brussels. However, Brussels-specific urban planning rules may affect commercial use of premises.
Walloon Region
The same federal commercial lease law applies in Wallonia. Walloon urban planning regulations may impose restrictions on commercial activities that could affect the scope of the lease.
Flemish Region
The same federal law applies in Flanders. The Flemish commercial lease practice follows the same rules. The Flemish Region has discussed regionalization of commercial lease law but no transfer has occurred to date.
Law of 30 April 1951 on commercial leases (handelshuurwet / loi sur les baux commerciaux). Articles 13-16 (eviction compensation). Article 14 (renewal procedure).