My tenant wants to buy the property I rent to them
Your tenant wishes to buy the property you rent to them in Belgium. Procedure, price, taxation, advantages and precautions for the landlord.
Selling to the tenant: Vincent’s situation
Vincent owns a house in Wavre that he has been renting out for 7 years to the same family. The tenant is reliable, pays regularly and maintains the property well. Vincent, approaching retirement, is considering selling his real estate.
His tenant expresses the wish to buy. This is a potentially win-win situation:
- For Vincent: quick sale, no agency fees, no viewings with other candidates
- For the tenant: known property, no surprises, no need to move
But beware of pitfalls: price, taxation and formalities must be handled correctly.
In Belgium, the tenant has no legal right of first refusal over the property they rent. The landlord is free to sell to whomever they choose. Selling to the tenant is a choice, not an obligation.
Advantages of selling to the tenant
For the landlord
| Advantage | Detail |
|---|---|
| No agency fees | Saving of 2 to 3% of the price |
| No organised viewings | Time saved and discretion |
| Quick sale | No marketing period |
| Well-maintained property | The tenant knows and respects the property |
| No rental vacancy | Rental income until the sale |
| No notice period to give | The lease ends by merger of capacities |
For the tenant
| Advantage | Detail |
|---|---|
| Known property | No unpleasant surprise |
| No moving needed | Continuity of life |
| Direct negotiation | No intermediary |
| Possible discount | Price potentially below market value |
Risks to anticipate
- Price setting: the tenant may feel they deserve a discount for their loyalty. The landlord is not obliged to grant a reduction.
- Financing: the tenant must obtain a mortgage. Allow 2 to 3 months.
- Hidden defects: the tenant knows the property and its defects. They can negotiate harder.
Sale procedure
Step 1: Agreement on the price
Have the property valued by a notary or an independent expert. The price must correspond to market value — not the cost price nor the capitalised rent.
Step 2: Preliminary sale agreement
The preliminary agreement is signed at the notary’s office. It can include a suspensive condition (mortgage approval).
Step 3: Extinction of the lease
The lease ends automatically at the notarial deed. There is no need to give notice or draft an amendment. The rental deposit is returned to the tenant (who is now the owner).
Step 4: Authentic deed
The deed is signed at the notary’s office within 4 months of the preliminary agreement. The tenant-buyer pays the registration fees and notary fees.
For details on selling a property with a tenant in general, see our guide on purchasing a property with a tenant in place.
Taxation of the sale
For the seller (landlord)
| Situation | Capital gains tax |
|---|---|
| Property held > 5 years | No tax on capital gain |
| Property held < 5 years | 16.5% on capital gain (speculation) |
| Sale below market value | Risk of reclassification as a disguised gift |
Vincent has held the property for more than 5 years: the capital gain is exempt. See our guide on capital gains in Belgium for details.
For the buyer (tenant)
| Region | Registration fees | Possible reduction |
|---|---|---|
| Wallonia | 12.5% of the price | Reduction for modest dwelling |
| Brussels | 12.5% of the price | Exemption (200,000 EUR in 2026) |
| Flanders | 3% (sole residence) | Reduced rate if price < threshold |
Tax advice
The sale price must be in line with the market. An artificially low price in favour of the tenant can be reclassified as a disguised gift by the tax authority, with application of gift tax.
For managing your remaining properties, a rental management software centralises your leases and documents. To create new leases, use our online generator. For other cases, see our case studies.