Commercial lease in Belgium: A complete guide

The commercial lease in Belgium

A commercial lease is a rental contract whereby the landlord and the tenant expressly or implicitly agree to use the premises for a retail commercial or craft activity with direct access to the public. Places such as shopping centres or stores without free access for customers are excluded from this definition.

The commercial lease is governed by the Law of 30 April 1951, as well as Articles 1708 to 1768bis of the Civil Code.

What is the duration of a commercial lease?

A commercial lease typically runs for 9 years, renewable up to 3 times for a maximum total of 36 years.An exception exists for short-term leases, such as a pop-up store, which can run for up to 1 year. If no notice is given at the end of this short lease, it automatically converts into a standard 9-year commercial lease.

Registration of the commercial lease

Depending on the clauses of the contract, either the landlord or the tenant may be responsible for registering the lease. In practice, this obligation usually falls on the tenant.Registration must take place within 4 months of signing the lease, and the fee is 0.2% of the total rent and charges over the contract duration, with a minimum of €50.This gives the contract a fixed date, making it enforceable against third parties.

Renewal of the commercial lease

The tenant must request renewal of the lease within a specific period, namely between the 18th and 15th month before the end of the contract, by bailiff or registered mail.This request must include the legal references, specifically Article 14 of the Commercial Lease Act, which stipulates that if the landlord does not respond within 3 months, the renewal is deemed accepted.

If the tenant fails to make this request on time, only the landlord will decide whether or not to extend the contract.

Termination of the commercial lease

The tenant may terminate the lease early at the end of each 3-year period, by giving 6 months’ notice.The landlord, for his part, can terminate the lease with 12 months’ notice, provided this is stipulated in the contract and only for specific legal reasons.

The landlord may also refuse renewal for legally recognized reasons, which may lead to compensation depending on the grounds invoked.

What happens if neither party takes action at the end of the contract?

If, at the end of the lease, the tenant continues to occupy the premises without opposition from the landlord, the contract becomes an indefinite-term lease.The tenant may then terminate it with 1 month’s notice, while the landlord must give 18 months’ notice. The tenant can still request renewal within the 18 to 15 months period of this notice.

Rent indexation

Rent indexation, if provided for in the contract, applies retroactively over a 12-month period, allowing the rent to be adjusted in line with inflation.

Summary of the rules applicable in Belgium

Element	Applicable rules in Belgium
Minimum duration	Commercial lease for at least 9 years; any shorter duration is requalified (pop-up < 1 year).
Short-term lease	Pop-up store up to 1 year; beyond that, automatically becomes a 9-year lease.
Renewals	Renewable up to 3 times, for a maximum of 36 years, without notarial formalities.
Tenant termination	Possible at the end of each 3-year period, with 6 months’ notice (bailiff or registered letter).
Landlord termination	Possible at the end of each 3-year period, with 12 months’ notice, only for legal reasons (personal use, family, etc.).
Tenant renewal request	Must be made between 18 and 15 months before lease end, by bailiff or registered mail.
Silence of landlord	If no reply within 3 months, renewal is deemed accepted.
Registration	Mandatory within 4 months of signing, at 0.2% of total rent, minimum €50.
Tacit continuation	If tenant stays without objection, lease becomes indefinite (notice: tenant 1 month, landlord 18 months).
Rent indexation	Possible if provided in the lease, usually annual based on inflation (CPI).

✍️ Conclusion: The importance of expertise in commercial leases

The commercial lease, with its complex rules and legal implications, requires careful attention. Navigating the intricacies of the commercial lease law can be challenging for the parties involved. It is highly recommended to seek the services of a real estate agent specialized in commercial leases to avoid costly mistakes.Their expertise can be essential to ensure a smooth transaction that complies with current laws.

Craftsmen potters

❓ What is the duration of a commercial lease in Belgium ?

A commercial lease is generally concluded for a period of 9 years. It can be renewed up to three times, for a maximum total of 36 years. For temporary activities such as a pop-up store, a short-term lease (maximum 1 year) is possible.

❓ Can a commercial lease be terminated before the 9 years ?

Yes. The tenant can terminate the lease at the end of each 3-year period, with 6 months’ notice. The landlord may also terminate, but only for specific legal reasons, with 12 months’ notice.

❓ How to renew a commercial lease in Belgium ?

The tenant must request renewal between 18 and 15 months before the end of the lease, by bailiff or registered letter. If the landlord does not respond within 3 months, the renewal is deemed accepted.

❓ What happens if neither party takes action at the end of the commercial lease ?

If the tenant remains on the premises without objection from the landlord, the lease becomes an indefinite-term lease. It may then be terminated by the tenant with 1 month’s notice, or by the landlord with 18 months’ notice.

❓ Is it mandatory to register a commercial lease in Belgium ?

Yes, registration is compulsory within 4 months after signing the lease. The registration fees are 0.2% of the total rent, with a minimum of €50.

❓ Is rent indexation automatic ?

No, it must be provided for in the contract. Generally, rent is indexed annually based on inflation (health index).

❓ Why should you consult an expert for a commercial lease ?

Commercial leases are governed by strict rules. A specialized real estate agent will help you avoid mistakes, secure your investment, and optimize your lease conditions.