Legislative Changes That Will Affect Your Real Estate Projects

Reduced 6% VAT Rate Extended for Heat Pumps Until 2030

• Context: Effective January 1, 2026, the reduced VAT rate of 6% applies nationwide to the installation of heat pumps in private dwellings under 10 years old (re-establishing the measure originally in place between 2022 and 2024). This rate will remain active through December 31, 2030.

• Scope: Applies strictly to heat pumps dedicated to space heating and domestic hot water. Systems used exclusively for cooling remain taxed at 21%. Dwellings older than 10 years already benefit from the permanent 6% rate.

• Requirements: Works must be carried out and invoiced by a registered contractor, with the lower-rate certificate attached to the invoice.

• Benefits: This VAT reduction can be combined with regional energy grants, lowering overall installation costs.

Brussels-Capital Region

1. Probate Planning: Extension of the Suspect Period to 5 Years

• New Rule: Following the ordinance of July 17, 2025, the "suspect period" for inheritance tax was extended from 3 to 5 years for gifts made on or after January 1, 2026.

• Impact: Unregistered movable gifts (hand-to-hand or bank transfers) are added back to the estate if the donor dies within 5 years. Inheritance tax rates apply (up to 30% in direct line, higher for non-direct lines).

• Alignment: Brussels now aligns its window with Flanders and Wallonia, which already enforced a 5-year timeline. Registered gifts escape inheritance tax entirely.

2. Stricter Housing Quality Standards for Rentals

• Enforcement: The Brussels decree of November 30, 2023, took effect on January 1, 2026, applying immediately to existing lease contracts without a transition period.

• Requirements: Imposes minimum living spaces, fully compliant electrical/heating systems, and specific sanitary equipment.

• Compliance: Landlords can obtain a preventive control certificate before leasing. Non-compliant properties face sanctions from the Regional Housing Inspection, including total leasing bans.

Wallonia

Mandatory 35% Renewable Energy Target for New Construction

• Requirement: Since January 1, 2026, all new buildings (and equivalent major renovations) must cover at least 35% of their annual primary energy consumption with renewable energy.

• Large Buildings: For structures with a total usable floor area of 1,000 m² or more, at least 15% of this total must be derived directly from onsite or local renewable systems.

• Scope: Covers new builds and equivalent projects (reconstructions or expansions creating a protected volume over 800 m³, doubling the existing protected volume, or replacing installations along with 75% of the building envelope).

• Prerequisite: A technical, environmental, and economic feasibility study remains mandatory before construction begins.

Flanders

1. Tightening of the 2% Reduced Registration Tax

• Changes: While the 2% preferential rate for purchasing a sole primary residence remains, criteria as of January 1, 2026, are stricter.

• Conditions:

  • Applies only to full-ownership purchases made exclusively by natural persons.

  • Purchases by corporate entities or split purchases (usufruct vs. bare ownership) revert to the standard 12% rate.

  • Buyers must register their main residency at the address within 3 years and remain continuously registered there for at least 1 full year to keep the tax benefit.

2. Major Reforms to the Mijn VerbouwPremie (Renovation Grant)

• Adjustments: Reorganized as of March 1, 2026.

• High-Income Earners: Owner-occupiers in top income brackets receive grant support strictly for heat pumps or heat pump boilers, with reduced payout amounts. Grants for insulation, windows, and roofs are removed for these categories.

• Second Homes & Landlords: Owners of second homes, vacant lots, and private landlords fall into the strictest eligibility tier.

• Lower-Income & Social Rentals: Income categories 3 and 4, as well as rentals managed through social housing agencies, retain their full eligibility based on standard Flemish requirements.