"The castle is in the capital of Belgium."
Translation:Het kasteel ligt in de hoofdstad van België.
"Staat" would be possible here as well. That would imply a tall castle, whereas with "liggen" it gives the impression of a more sprawling structure (possibly including the surrounding estate). Other buildings that can "lie" instead of "stand" include farms (boerderijen), monasteries (kloosters), warehouses (warenhuizen), palaces (paleizen) and other large places like those.