The property market is constantly changing, and 2026 is no exception. With new regulations and emerging trends, it is essential to stay informed. Here is an overview of the main changes to expect this year.
Reduced VAT for demolition and reconstruction: an early end
From January 2021 until the end of 2023, a reduced VAT rate of 6 % applied to demolition and reconstruction work. However, this measure is coming to an end, and unless you live in one of the 13 major cities in Flanders, the standard rate of 21 % will be reinstated. This represents a significant change for those planning reconstruction projects.
Abolition of tax benefits for second homes
From 2024, the federal housing allowance for second homes and rental properties will be abolished. This decision will affect new buyers, as those signing a deed in 2023 can still benefit from certain tax advantages. This change highlights the importance of acting quickly for those considering an investment in a second home.
VAT reduction for renewable energy in renovation projects
From 2024, the reduction in VAT to 6 % for solar panels, heat pumps and solar water heaters will only apply to houses over 10 years old. This measure encourages homeowners to invest in energy-efficient renovations, but it requires a careful assessment of the eligibility criteria.
Rent reviews for poorly insulated houses
Since October 2023, landlords have once again been able to index rents for poorly insulated properties, following a temporary ban during the energy crisis. Whilst this measure may encourage better insulation, it is accompanied by safeguards to prevent excessive and unjustified increases.
Cap on mortgage application fees
From January 2024, mortgage application fees will be capped at 350 euros, down from 500 euros previously. This reduction aims to make the process of obtaining a mortgage more transparent and affordable for borrowers, particularly those on lower incomes.
Is the Belgian property market heading towards stabilisation?
In Belgium, despite a significant reduction in transactions and a slight fall in prices, the market appears to be showing signs of resilience compared with other European markets. Structural factors, such as the high rate of home ownership and a tendency towards stability rather than frequent house-hopping, contribute to lower price volatility. However, changes in interest rates and the measures taken by the ECB and the Fed may bring their own share of uncertainties and opportunities.
In conclusion, the changes set to take place in the property sector in 2024 require strategic planning and rapid adaptation. Whether you are a buyer, a homeowner or an investor, it is crucial to understand these new rules and factor them into your financial decisions. For personalised advice and answers to your questions, our property experts are here to guide you through this evolving process.