In Belgium

Key money (pas-de-porte) is a lump sum paid by a new commercial tenant to secure the right to occupy commercial premises. It can be paid to the landlord (to obtain the lease) or to the outgoing tenant (to take over the business location).

Key money is particularly common in:

  • Prime retail locations (city centres, shopping streets)
  • Well-established business locations with existing foot traffic
  • Hospitality premises (restaurants, cafes) with existing equipment

How it works

Nature. Key money is not rent, not a deposit, and not a guarantee. It is a one-off payment for the commercial advantage of the location. Its legal nature is debated: it can be treated as a premium for commercial potential, compensation for the outgoing tenant’s goodwill, or an entry fee.

Tax treatment. For the recipient, key money is taxable income. For the payer, it can be spread over the lease duration as a deductible expense.

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Good to know
Key money is freely negotiated and not regulated by law. There is no cap on the amount. In prime Brussels locations, key money for a small retail unit can reach 50,000 to 200,000 EUR or more.

Practical example

A baker wants to open a shop on a busy street in Namur. The outgoing tenant asks for 35,000 EUR in key money for the takeover of the location (including existing equipment and clientele). The baker pays the key money, signs a 9-year commercial lease at 1,200 EUR/month, and benefits from the established foot traffic.