What changes will your real estate face in 2025?

New year, new rules—and 2025 is no exception. The real estate world is on the verge of undergoing some significant changes. Whether you want to buy, sell, renovate, or rent out a property, the new rules could significantly impact your real estate decisions. Think lower registration fees, stricter energy requirements, and interesting VAT rules for demolition and reconstruction. Want to know how to make the most of these changes? Read on and discover what 2025 has in store for your real estate!

FOR THOSE WHO WANT TO BUY

Reduction in registration fees - buying becomes more attractive 

Good news for future homeowners! Starting January 1, 2025, the stamp duty on the purchase of your primary residence will drop from 3% to 2%. This means significant savings when buying your dream home. The date the deed is signed is what counts.

Foreign Real Estate
Additional scrutiny will be applied to foreign property holdings. Anyone who already owns a home outside Belgium is not eligible for the financial benefits associated with a primary residence here (and would therefore have to pay 12% in registration fees instead of 2%). The new Flemish government aims to strengthen cooperation with international authorities to ensure that no one slips through the cracks.

Loans and Subsidies
The government aims to help more Flemish residents on a tight budget become homeowners through the Flemish housing loan, the housing guarantee, interest-free loans, and other measures. How exactly? The details are still being worked out, and the program will be implemented later in 2025. 

FOR THOSE WHO WANT TO RENOVATE

Relaxation of renovation requirements: more time, less pressure 

The renovation requirement remains in place, but instead of 5 years, you now have 6 years to bring your home up to energy label D. So that gives you a little extra breathing room! What’s more striking is that future targets are being put on hold. Starting in 2028, there will be no further tightening of standards to label C, nor to label B starting in 2035. Still, we’ll have to wait and see, because Europe is still aiming to bring all homes up to label A by 2050.

New EPB requirements: Stricter standards for projects renovations 

Starting January 1, 2025, the EPB requirements for projects major renovations will change. For projects , gas connections projects no longer projects , and the minimum share of renewable energy will decrease from at least 25 kWh/m² per year to 15 kWh/m² per year.

Transitional rule for 6% VAT on demolition and reconstruction extended

For demolition and reconstruction projects, a reduced VAT rate of 6% applies under certain conditions, instead of the standard 21%. Since 2024, a permanent regulation has been in effect for this purpose, intended for individuals who hire contractors to build a home in which they will live themselves. The home may not exceed 200 m² in size, and the owner may not own any other homes. Construction projects by developers, turnkey companies, and project developers are not covered by this regulation.

When the permanent regulation was introduced, two transitional arrangements were put in place, which have now been extended until the end of June 2025:

• For project developers and construction developers: They may continue to charge 6% VAT for projects for which the environmental permit was applied for before July 1, 2023.

• For projects in 32 central cities: The extension applies to permits applied for before January 1, 2024. In these cities, second homes were also eligible for the reduced rate, which is a stricter requirement than the permanent regulation.

Assessed value

In recent years, you were eligible for a 50% discount or even a waiver of the annual property tax on your home if you undertook a major energy-efficiency renovation. This served as an incentive to encourage people to improve their energy efficiency. But because every major renovation or projects must now meet those energy standards, the Flemish government is eliminating the tax benefit.

Goodbye to the 1% tax rate for energy-efficiency renovations
Are you planning a major energy-efficiency renovation or demolition and reconstruction? Please note that the preferential 1% tax rate for these projects has been discontinued as of January 1, 2025. 

Elimination of property tax discounts for energy-efficient homes
Currently, you are eligible for a property tax reduction for energy-efficient renovations. However, these discounts will be eliminated as of January 1, 2025. Existing applications will retain their benefits, but new applications submitted after this date will no longer be eligible.

Mandatory Energy Performance Certificates for large non-residential buildings

Starting in 2025, an EPC will be required for non-residential buildings larger than 1,000 m². The goal of this policy is to raise energy awareness in the business sector and provide transparency to tenants and buyers of commercial properties.

My Renovation Rebate is being reduced: what does this mean for you?

The "Mijn VerbouwPremie" is a grant from the Flemish government for renovation and energy-saving projects, such as replacing windows and doors, insulating walls, roofs, and floors, and much more.

But please note! Starting January 1, 2025, the subsidy rates for the lowest and middle income groups will be reduced: from 50% and 35% of the invoice amount to 35% and 25%, respectively. If you still wanted to take advantage of the higher subsidy, it was important to submit your application by December 31, 2024, along with the final invoice for the work (advance invoices do not count). The good news is that the subsidy for heat pumps, heat pump water heaters, and solar water heaters will remain in place in 2025!

Revised EPC Label Rebate: Higher Rebate, New Application Process

The My EPC Label Bonus will be reformed starting in 2025. You can apply for this bonus if you significantly improve the EPC score within 6 years of purchasing a home. Homes with an E or F rating must achieve at least a C rating, and apartments with a D, E, or F rating must achieve at least a B rating. The more energy-efficient the home, the higher the bonus!

Starting in 2025, you’ll need to apply for the subsidy through the Mijn Verbouwloket, the same portal where you apply for the Mijn VerbouwPremie. From now on, the subsidy will be calculated based on your household income, just like the Mijn VerbouwPremie. The good news is that the maximum amount is now 7,000 euros, instead of the current 5,000 euros. Plus, a good ventilation system can earn you an extra high subsidy!

No more renovation loans with interest subsidies starting in 2025

Until now, anyone who purchased a home with poor energy performance (energy label E or F) and renovated it within five years could qualify for a renovation loan with an interest subsidy from the Flemish government. However, this measure is coming to an end! Starting January 1, 2025, it will no longer be possible to obtain a renovation loan with an interest subsidy from a bank for a home with a poor energy certificate. 

WHO RENTS

Energy-efficient rentals: No rent indexation for poorly insulated homes 

Attention landlords: Starting in 2028, rent indexation will no longer be permitted for homes with poor EPC ratings (E and F). This provides an additional incentive to invest in energy-efficient solutions. 

Dual registration in Brussels 

Starting January 1, residents of Brussels will be required to register their new lease agreements twice: once with the Brussels Region and once with the federal government. This is due to an ongoing dispute between the two levels of government, for which the Constitutional Court has not yet provided a resolution.

Longer repayment period for rental deposit loans

For tenants who are having difficulty paying the rent deposit of up to three months, the Flemish Housing Fund offers the option of taking out a rent deposit loan. Starting in 2025, the repayment term for this loan will be extended from 24 months to 36 months. This gives tenants more breathing room to repay the security deposit and provides landlords with greater certainty regarding payment of the security deposit.

Out with the old, in with the new. The real estate market is constantly evolving, and 2025 will bring some significant changes. Whether you’re buying, selling, or renting, it’s essential to stay informed and adjust your plans accordingly. Do you have questions or want to learn more about how these changes will affect your situation? Feel free to contact us. We’re here to guide you every step of the way!