The Belgian federal government has reached a new agreement for 2025-2029 that provides for the introduction of significant reforms in taxation, investment, and the energy transition. Upon their adoption, these measures will have a substantial impact on the real estate sector, including property owners, investors, and developers.
Below is an overview of the key changes that were announced.
1. Investments and economic attractiveness
-
Combating tax optimisation in the transfer of shares in real estate companies
The Government intends to introduce specific measures aimed at curbing legal structures designed to avoid registration duties on real estate transactions—particularly through “share deals” involving the shares of real estate companies—and will assist the Regions in this regard (since registration duties fall within regional competence).
-
Taxation of financial capital gains
A general solidarity contribution of 10% will be levied on capital gains derived from shares, bonds, and cryptocurrencies, with losses (in this income category) being deductible in the same year, without the possibility of carry-forward. An exemption of EUR 10,000 is provided for capital gains realised by small investors and, for investors holding a minimum participation of 20%, a progressive taxation regime is envisaged, culminating in a full exemption for capital gains up to EUR 1 million.
-
Creation of an attractive fiscal framework for investment funds
An optimised fiscal regime will be established for private equity and venture capital funds, thereby enhancing Belgium’s competitiveness in asset management.
2. Loans, borrowing, and banking regulation
-
Abolition of the tax deduction for interest on properties other than a primary residence
The federal provision allowing the tax deduction of interest on loans for real estate investments will be abolished, directly affecting the profitability of properties placed on the rental market.
-
Regulation of real estate investments via individual pension schemes
The use of capital from Individual Pension Accumulation Plans for the financing of real estate investments will be prohibited, except when the financing pertains to one’s own sole residence.
-
Enhanced protection for real estate borrowers
The inclusion of a suspensive condition regarding the procurement of financing in real estate sale contracts will become the norm, thereby preventing scenarios where prospective buyers are bound by contracts without secured financing.
-
Support for loans for energy renovation
In partnership with banks, specific financing solutions will be offered to property owners intending to carry out energy efficiency improvements.
-
Access for banks to the energy performance data of buildings (EPB)
Mortgage lenders will be granted access to the EPB database to incorporate the energy performance of properties into their risk management and financing conditions.
3. Construction sector
-
VAT at 6% for demolition and reconstruction
To support the renovation policy, the scope for benefiting from the reduced VAT rate of 6% will be extended to all demolition and reconstruction projects, including those involving commercial marketing by professionals. The condition related to the habitable surface area, however, will be tightened, lowering the threshold from 200 m² to 175 m² in order to better target modest housing and sustainable renovations.
-
Clarification of the renovation concept and integration of a durability condition
The Government aims to further specify the definition of renovation to secure the interests of sector professionals and will examine the introduction of a durability condition within European legislation.
-
Strengthened measures against social dumping and abusive subcontracting
The Government is considering the implementation of stricter oversight of subcontracting chains and the imposition of a registration obligation for workers upon leaving construction sites—similar to measures already in place in the cleaning and moving sectors—to enhance site safety.
-
Modernisation of the Breyne law and strengthening of consumer protection
The Breyne law, which governs the sale of off-plan new housing, will be updated to address its shortcomings and strengthen the provisions for the monitoring of legal compliance, including through professional prohibitions. Additionally, a dedicated mediation service for the construction sector will be established to better inform and protect consumers.
-
Maximisation of waste reuse and the circular economy
The Federal Government, in close cooperation with the Regions, will implement initiatives to optimise the reuse of waste materials and promote the circular economy within the construction sector.
4. Energy transition
-
Strengthening fiscal incentives for energy renovations
Fiscal incentives will be offered to both property owners and condominium associations to encourage energy efficiency improvement works.
-
Facilitation of decision-making for renovations in co-ownership
Energy-related works (e.g. the installation of solar panels, insulation, electric vehicle charging stations, etc.) will be approved by a simple majority of co-owners, thereby simplifying decision-making and accelerating energy transition for apartment buildings.
-
VAT at 6% on heat pumps for five years
A reduced VAT rate will be applied to the purchase and installation of heat pumps, encouraging individuals to opt for more ecologically friendly heating solutions. Simultaneously, the VAT rate on fossil fuel-based boilers will increase from 6% to 21% for properties older than ten years.
-
Gradual phasing out of fiscal incentives for fossil fuels
In order to foster the energy transition, fiscal advantages applicable to fossil fuels will be gradually abolished and replaced by support measures for the utilisation of renewable energy sources.
-
Harmonisation of the green investment deduction
The investment deduction applicable to projects related to the energy transition will be standardised at 40%, thereby facilitating the channelling of capital towards sustainable projects.
5. Reform of the building administration and management of public real estate
-
Reduction of 15% in office space leased by the Belgian State
The rise of teleworking is prompting the government to reconsider its use of office space, which may contribute to a reduction in demand within the office market.
-
Rationalisation and optimisation of the federal real estate portfolio
A comprehensive inventory of the Belgian State’s real estate assets will be conducted to identify unused buildings, which should be repurposed or disposed of as expediently as possible. Revenues generated from these dispositions will be allocated to finance governmental reforms.
-
Maintenance of the carbon neutrality target by 2050
To achieve the goal of climate neutrality by 2050, the Building Administration will systematically conduct energy audits and increase the use of public-private partnerships whenever such arrangements prove advantageous.
-
Modernisation and renovation of strategic public buildings
Major renovation projects are planned, notably for the Tour du Midi and the Palace of Justice, with the aim of improving the safety, accessibility, and energy efficiency of these infrastructures.
6. Modernisation and efficiency of the justice system
-
Optimisation of judicial and administrative procedures
A comprehensive evaluation will be undertaken to accelerate and enhance the efficiency of judicial and administrative procedures (e.g. before the Council of State), particularly those concerning real estate and financial litigation.
-
Reduction of judicial backlogs
Specific solutions will be sought to reduce judicial backlogs, especially in Brussels, where the congestion of courts adversely affects real estate and commercial disputes.
These reforms will undoubtedly impact the real estate market, the taxation of investments, and the energy choices of both individuals and businesses.
These measures, however, still need to be transposed into concrete legislative texts. Law-Now and CMS will closely monitor the evolution of the debates and the adoption of the corresponding laws in order to assess their impact on the real estate sector.
