Rental guarantee deposit
Are you planning to rent a home in Belgium? In this case, you need to be aware that owners require a rental guarantee deposit to cover the cost of repairs for any damage when you leave. BNP Paribas Fortis can help you with this process.
What is a rental guarantee deposit?
The rental guarantee equals a maximum of 2 months of rent, that the Belgian law requires you to deposit immediately with a financial institution, in a special account used solely for this purpose, and held in your name. The money deposited protects the owner if the tenant does not meet his or her liabilities (paying the rent, maintenance etc.) in respect of the rental property.
The capital, as well as the interest received, are locked up for the term of your lease. They can only be released when you move out, subject to the agreement of both yourself and the owner, once you have paid all that you owe, or following a court ruling.
What type of account is used to hold this blocked rental guarantee deposit?
The account used for your rental guarantee deposit is a simple savings account opened in your name and blocked for the term of your lease.
The main benefits:
- Free of charge: no management fees, no subscription charges.
- Interest-bearing: you receive a basic rate of interest and a loyalty bonus, subject to certain conditions.
- Tax benefits: the current tax legislation in Belgium exempts private individuals from withholding tax up to a certain level of interest.
In some cases you can use a commitment by your employer to avoid having to lock up these funds.
For more information, send us an email at email@example.com or contact our Expat team on +32 (0)2 433 41 00.