Breyne Law security deposit calculation: method and examples
The security deposit calculation seems simple — 5% — but the devil is in the details. Here all costed cases.
1. The basic rule
5% of the sale price excl. VAT, period — rule set by Article 12 of the Breyne Law (full text Belgian Official Gazette). VAT, whether at 6% (modest home, first residence under conditions) or at 21% (resale, investment), does not change the base.
Standard example: turnkey house at €320,000 excl. VAT → security deposit = €16,000.
2. Land + construction case
If land is sold together with construction, only the construction portion serves as base. The split must appear explicitly in the contract.
Example: land €80,000 + construction €250,000 excl. VAT → security deposit = €12,500 (5% of 250,000).
If the split is unclear or absent, refuse to sign before clarification. It is a point often negotiated to your disadvantage.
3. Special cases
- Subdivision: each buyer has their own security deposit on their share.
- Amendment during the site (additional option): the security deposit must be revised upwards.
- Variants negotiated downward: the security deposit remains on the initial price except for explicit renegotiation.
See also our complete cluster Breyne Law security deposit and security deposit release.
Our Breyne Law advisory audits calculations and the base — detection of common errors.