At a glance
- Allow for additional costs of 12% to 15% on top of the purchase price, including 10.4% property transfer tax.
- Banks typically finance a commercial property up to 60%–80% of its market value, so you will need to contribute your own funds.
- Check the zoning plan, environmental history, energy label and structure before you sign.
- A condition allowing you to withdraw subject to financing and due diligence is not standard in commercial property transactions: negotiate it.
Buying or renting: when does buying make sense?
Buying is particularly worthwhile if you intend to stay in the same location for at least ten years, the property requires few specific alterations and you can afford the equity contribution without restricting your working capital. Renting remains more flexible when expanding, downsizing or facing an uncertain market position.
- In favour of buying: capital appreciation, no rent indexation, freedom to alter the property.
- Against buying: capital tied up in property, maintenance risk, less flexibility when relocating.
- An intermediate option: buy through a separate property holding company (bv) and let the property to the operating company.
Buyer's costs for a commercial property
- Property transfer tax on non-residential property: 10,4% of the purchase price (new builds often attract VAT instead of property transfer tax).
- Civil-law notary and Land Registry: approximately €1.500–€4.000.
- Commercial real estate buying agent: often 1%–2% of the purchase price or a fixed fee.
- Valuation report for the bank: approximately €1.500–€4.000, depending on the property and its value.
- Building and environmental surveys: €1.000–€7.500.
- Financing and advisory costs: dependent on the bank and adviser.
Financing a commercial property
A commercial mortgage has stricter conditions than a residential mortgage. The bank considers the market value stated in a validated valuation report, your business's annual accounts and cash flows, and the property's marketability. A standard industrial unit on an easily accessible business park is viewed more favourably than a specialised production building.
- Financing typically covers 60%–80% of market value.
- The term is usually 10 to 20 years, often with mandatory capital repayments.
- Fixed-rate periods are shorter than for residential mortgages.
- Alternatives: Qredits, crowdfunding, sale and leaseback or financing through an investor.
Step-by-step guide: how to buy a commercial property
- Draw up your requirements: floor area, clear height, floor load capacity, office accommodation, accessibility and parking.
- Have your bank or adviser assess your borrowing capacity in advance.
- Search through property listing websites and a commercial real estate agent's network; many properties are sold off-market.
- Request the information pack: drawings, energy label, ground lease, zoning plan and tenancy agreements.
- Have the property valued and commission building and environmental surveys.
- Negotiate the price, condition on handover and conditions allowing you to withdraw.
- Sign the purchase agreement and arrange the transfer through the civil-law notary.
Due diligence: what should you check?
- Zoning plan / environmental plan: is your activity permitted here, and under which environmental category?
- Soil and asbestos: request historical soil investigation reports, particularly on older industrial estates.
- Energy label: offices must have at least a C label to be used as offices.
- Ground lease: ground rent, term and review dates have a significant impact on value.
- Existing tenancy agreements: a sale does not terminate a tenancy; existing tenants remain in place.
- Structure: floor load capacity, roof structure and building services in relation to your intended use.
What does a commercial real estate buying agent do?
A commercial real estate buying agent helps you search, including beyond publicly listed properties, assesses whether the asking price is consistent with comparable transactions, identifies risks in the documentation and conducts negotiations. Particularly in commercial property, where comparable transaction data is less publicly available, this market knowledge often delivers more value than the fee costs.
Frequently asked questions
How much of your own money do you need to buy a commercial property?
Allow for 20%–40% of the purchase price plus 12%–15% in buyer's costs. For a property costing €800.000, your own contribution can easily reach €260.000 or more.
Do you pay property transfer tax on a commercial property?
Yes, a rate of 10,4% applies to non-residential properties. When buying a new build or building land, you usually pay VAT rather than property transfer tax.
Can I buy a commercial property in my own name?
Yes, but many business owners choose a separate property holding company (bv) to separate risks. Ask your accountant to calculate the tax implications.