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• Buying an apartment in Brussels as a US citizen involved some extra work due to US tax laws.
• Despite getting a mortgage and my husband getting laid off, we're still in a great financial position.
• Other costs, such as the cost of travel, have risen since I moved, but it's still cheaper than the US.

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Two and a half years ago, my family moved from Washington, DC to Brussels, and our cost of living fell dramatically. Since then, we've gone through two significant life events: a home purchase and a job loss. These two events, compounded by the inflation felt throughout Europe in 2022, changed our financial outlook.

I work as a freelance consultant, and my husband works in sales in the tech industry. We pay 50% income tax to the Belgian government. To offset the high tax rate, many companies in Belgium use different incentives such as company cars, a stipend for meals, and affordable healthcare.

FATCA made buying an apartment complicated

We previously rented, but our landlord raised our rent by 10% due to the Belgian inflation index in 2022. This increase motivated us to buy an apartment in Brussels, which was our goal, but this sharp increase of 200 euros (about $218) gave us a sense of urgency. It took us about four months to find an apartment we liked in our price range. After some negotiation, we bought the apartment for less than $50,000, under the asking price.

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The Foreign Account Tax Compliance Act law is the challenge in buying as a US citizen in Belgium. FATCA requires foreign financial institutions to report the financial activities of US citizens abroad to the IRS. Noncompliance by these institutions can result in hefty penalties to financial institutions. That means that many banks in Europe refuse to bank with US citizens, which made it challenging to find a bank that would give us a mortgage. Out of 25 banks we looked at, only three accepted our application.

The next hurdle was my work status as a US citizen. The banks would only accept my local income, much less than what I invoiced in the US, so our loan was mainly based on my husband's income, forcing us to put most of our cash into a down payment.

Compared to the US, age is also a significant factor. Since we're both in our mid-40s, the bank considered our retirement. Although my retirement was almost double my husband's due to my military pension, the bank did not consider it, because it's not generated in Europe. The bank would only give us a 20-year mortgage.

Although the monthly payment is higher, we will save about $50,000 over the life of the loan compared to a 25-year mortgage at an interest rate of 3.41%, still lower than the current average rate of 5.15% in the United States.

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Although our cash savings mainly went to our home, we don't regret the decision since we now pay just 100 euros more than we paid in rent. Also, we still pay less in mortgage than in Washington, DC, and our property tax is 75% less.

Overall, we save about $400 a month in housing costs. We would've liked a lower mortgage payment, but knowing that we will retire with our apartment paid off gives us peace of mind. We chose an apartment in a small row house with a low community maintenance cost of about $70.

My husband was laid off

My husband's company was also affected by tech layoffs in 2023, reducing 10% of their Belgian staff. Unfortunately, my husband lost his job.

However, the employment laws in Belgium favor the employee, and my husband received an exit package that included almost four months of pay, remaining bonuses, and cash benefits. Also, his company provided a suite of assistance, including relocation counseling from an independent company, and he could drive his company car three months after his last day on the job.

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Given that we've both gone through job losses in the United States, where our managers didn't even bother turning on the camera to let us go — such as a former boss of mine who even tried to take away my measly two-week severance when I questioned my termination — this is a dignified way to lose a job. It was not ideal, but knowing our family had a buffer made me sleep better at night. It's worth paying the high taxes.

Thankfully, my husband returned to work with a new company less than three months after his restructuring. It would've been sooner, but he searched for jobs in July through August when Europe comes to a standstill as everybody regularly takes three to four weeks of vacation.

Travel and leisure costs have risen — but are lower than the US

Although there's been a slight increase in plane tickets and dining out, I still find it more affordable than Washington, DC, or any big city in the United States. The last time I visited New York in October 2023, I was shocked to pay $23 for a cocktail!

I can visit a nice restaurant in Belgium, France, or Holland and get a cocktail for about $12. A glass of wine is even more affordable. Travel also continues to be reasonable within Europe. Living in a country like Belgium, which borders four countries (France, Holland, Germany, and Luxembourg), makes it easy to go on a leisurely weekend escape.

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Last spring, we vacationed in Sicily for a week, spending less than $2,500 on plane tickets, a week at a farm stay, a rental car, and meals for three people. For our summer holidays, we drove to Spain and France, and we found the prices of lodging and food much more affordable than in the United States.

I don't regret our move

Two and a half years have passed since we moved to Brussels, and although homesickness creeps in occasionally, I don't regret our move. Although buying an apartment was way more complicated than in the US, it shields us from inflation-related rent hikes.

Dealing with job loss is stressful, but getting support from your employer and a decent exit package also makes the experience positive. We're grateful to have the opportunity to raise our daughter in an international environment, allowing us to travel and live comfortably.

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