Coalition agreement 2025 and real estate: tax measures and investment tips

Real Estate Taxation

The transfer of real estate via a share deal in Belgium is currently exempt from VAT and registration duties, making it attractive compared to a normal real estate sale. However, the federal government wants to encourage communities and regions to amend the legislative framework so that the sales tax can also apply to a share deal. It remains to be seen whether this change will actually be implemented.

Additionally, a solidarity contribution of 10% is proposed on future capital gains realized on financial assets (shares) in personal income tax.

Abolition of Federal Interest Deduction for Non-Primary Residences

The tax benefit for loans on second homes and rental properties will be abolished from income year 2025 (assessment year 2026). This measure also applies to existing credit agreements, which may impact the profitability of rental real estate and influence investment strategies.

Expansion of Reduced VAT Rate for Demolition and Reconstruction

The federal government aims for a uniform VAT rate of 6% without exceptions, replacing the two temporary preferential regimes currently in effect until June 30, 2025.

• The reduced rate will again be accessible to project developers and real estate promoters.
• Social conditions will be maintained.
• The surface area criterion will be tightened from 200 m² to 175 m².
• There will be uniform definitions for renovation (6%) and redevelopment (21%).

Sustainable Investments: VAT Reduction for Heat Pumps

• The coalition agreement provides for a temporary VAT reduction from 21% to 6% for the supply and installation of heat pumps.
• This will apply for five years.
• It promotes the energy transition and makes sustainable solutions more accessible.
• Improves EPC scores, benefiting both individuals and real estate investors.

Combating Social Dumping

Since January 1, 2025:

• A ban on financial subcontracting applies.
• A restriction on the number of subcontracting levels in certain sectors is in place.

The government also wants to further review subcontracting chains, combat social dumping, and enhance safety on construction sites by introducing mandatory registration upon leaving the site.

Modernization of the Breyne Law

The Breyne Law protects buyers from defective works and the insolvency of sellers when purchasing off-plan or to-be-built homes.

To better protect buyers, loopholes will be closed, enforcement strengthened, and professional bans optimized and extended. Additionally, extra protection will be introduced for shell and major renovation projects that currently fall outside the Breyne Law.

Purchasing Power and Mortgage Conditions: What Changes?

To protect buyers when signing a sales agreement, the federal government is introducing a mandatory suspensive condition for obtaining the necessary credit, with the sanction of contract nullity.

For energy-efficient homes (EPC), mortgage conditions will be eased, and banks will gain access to the EPC database.

Expansion of Prohibited Unfair Terms

Unbalanced clauses in lease agreements between businesses are being addressed. The Economic Law Code will be expanded with provisions on prohibited unfair terms. Landlords will no longer be allowed to terminate rental contracts for reasons unrelated to the lease itself, such as mandatory minimum purchases or exclusive supply contracts.

Simplification of Energy-Efficient Renovations and Investments in Co-Ownership

The decision-making process within apartment co-ownership for energy-related interventions will be simplified: a simple majority will suffice instead of a two-thirds majority. The government encourages the development of multi-year investment plans, with the possibility of favorable loans for Associations of Co-Owners (VME).

Implementation

It remains to be seen which initiatives from the coalition agreement will actually be enacted into law. DGDM experts closely monitor developments so that you can anticipate changes in time.

Want to know which new measures will impact your real estate strategy?

Contact De Groote – De Man for tailored legal advice.