Among the benefits of a small warehouse rental in Belgium is its low cost. In addition to its affordability, this type of rental is also ideal for start-ups and small businesses. In this article, we look at the Belgian demand for warehousing, the rents for these facilities, and the legal aspects of warehousing in the country. You can learn more about the benefits of a small warehouse rental in Belgium from this article.
Demand for warehousing in Belgium
With the recent increase in logistics activity, demand for small warehouse rental in Belgium is expected to continue to increase. According to statistics, more than six million square metres of new stock are expected to be added to the Belgian market in the coming year. This is an increase of eight percent on last year. The market is already showing the effects of this boom, with only one percent of warehouse space sitting empty. In fact, Belgium has the lowest vacancy rate in Europe, meaning that available space is being rented out within a record amount of time. Last year, Belgium lost many large warehouses to the Netherlands, partly because of their laws regulating night work, but that trend is slowly reversing.
Although Belgian property prices have decreased slightly, overall demand for industrial space remains solid, despite the current uncertainty regarding the global economy. Belgium’s real estate market has remained relatively stable and transparent despite the ongoing COVID-19 outbreak, which has discouraged many businesses from opening in the country. While it is still expensive compared to neighboring countries, the Belgian market is relatively stable and transparent. The first half of 2019 saw a good year, although results were patchy. In addition, the market was predicted to remain stable in 2020, even though COVID-19 has negatively affected the market.
Rents in Belgium
Rents for small warehouse rental in Belgium are increasing due to the growing logistics sector. Last year, more than 600,000 square meters of space were rented in Belgium. The number of warehouses is increasing year by year, and they are becoming larger, more sophisticated, and more varied. As a result, rents are increasing for the first time in years. Prime location warehouses are going for 55 euros per square metre, a record price. Despite the growing number of warehouses in the country, demand for space remains high, even during the COVID-19 pandemic. Additionally, e-commerce is growing rapidly in the country, bringing about a need for even more space.
When evaluating the cost of a small warehouse rental in Belgium, consider location, accessibility, and size. The most expensive locations are around the Meirstraat and Schuttershofstraat, which are triple A locations. If you plan on locating outside of these locations, the cost will be much lower. For this reason, it is important to research location prices before signing a lease agreement. In general, rents in Brussels are cheaper than in neighboring countries.
Opportunities for occupiers
Occupiers of small warehouses in Belgium have a variety of options. The country is relatively cheap compared to many neighbours and offers good rental yields. Moreover, tenants can choose to sign contracts of three, four or nine years, which ensure a secure lease. In Belgium, the penalties for giving notice are usually three months’ rent in the first year, two months’ rent in the second year and one month’s rent in the third year.
One of the most significant changes to the VAT regime in Belgium has been the introduction of an optional regime for immovable renting. The new VAT regime applies only to newly constructed real estate used for business purposes. Therefore, existing and future contracts concluded before January 1 will continue to be subject to the previous VAT regime. Moreover, under the new VAT regime, warehouse spaces will be more easily taxed. As a result, occupiers of small warehouses in Belgium will have a variety of opportunities to expand their businesses.
Legal aspects of warehousing in Belgium
If you’re considering investing in warehousing space in Belgium, there are several factors you should consider. First, the supply of warehouse space in Belgium is insufficient. Most of the existing supply is of light warehousing units, of about 200 to 400 square meters. Larger units, however, are harder to find, but new developments are still planned with a total of 10 modest units.
Next, consider the tax implications of your warehousing. The Belgian government requires that you adhere to certain laws regarding the sale of products and services. The Belgian tax code defines what constitutes supply of goods. Goods, such as alcoholic beverages, are considered community excise products. Services are defined as intracommunity acquisitions, between taxable persons. Finally, there are certain products that are regulated under the Belgian customs law, which may also apply to warehousing in Belgium.
VAT on warehousing in Belgium
While Belgian real estate transactions are generally VAT-free, if you are not a resident of the country, you are likely to be charged VAT for the rental of your small warehouse. Whether you rent your warehouse for business purposes or for private use, there are some exceptions. In particular, you cannot charge VAT on a warehouse attached to a store or office. To avoid any surprises, here are some things you should know.
First, when importing goods into Belgium, you must declare them for customs. Customs clearance is typically performed by a freight forwarder or appointed carrier. It involves a customs declaration, which ultimately leads to payment of import duty and taxes. In Belgium, the VAT will be collected from the buyer and be deducted from the rental fee. It will also include any storage fees, utilities, and utilities that you pay for the warehouse.