2024 brings significant changes to the Belgian real estate sector, with declining rates for the My Renovation Premium and the disappearance of the reduced VAT rate on solar panels. Discover all the housing changes 2024 in Flanders and how they will shape our residential landscape.
Below is a brief summary of what is changing:
- Advantage rates My Remodeling Premium drop
- End of reduced VAT rate on solar panels and boilers
- End premium on solar panels
- New registration fees for portability
- Property tax increases
- Real estate deeds more expensive
- Transitional year VAT demolition and reconstruction
- Extra premium for asbestos removal combined with wall or roof insulation
- Reduced filing fees on mortgage loan
- Preferential right tenants in Brussels Region.
- Rents may be indexed for homes poor EPC label
- EPC label mandatory for apartment buildings
Bye bye, advantageous rates
My Renovation Premium is a premium you get when you invest in an apartment or house in the Flemish region. For example, you can choose to make your home more energy efficient. The renovation premium will remain in place until at least the end of 2024, but the preferential rates are dropping. Thus, the rates of the lowest income category will drop from 50% to 35% and those of the middle from 35% to 25%.
In addition, the housing changes 2024 also mean the end of the reduced VAT rate on solar panels and boilers. In 2022, we got a reduction from 21% to 6% on these products to encourage as many people as possible to participate in the energy transition. The good news is that this reduced rate does remain for heat pumps.
Since 2021, there was a premium for solar panels. If you had them installed, you received a one-time premium of 1,500 euros if they were professionally installed. This year, this premium already dropped significantly to 750 euros before finally ending in 2024. Still planning to install solar panels? Then do it soon!
Another thing you need to be quick about is the portability of your home. This portability registration fee only lasts through the end of 2023. In 2024, you will have to pay another 3% registration fee.
2024 transition year for demolition and reconstruction
Since 2021, there has been an advantageous 6% VAT rate for demolition and reconstruction. Both individuals and people buying a home through a construction promoter were eligible.
The government has decided to extend the lower VAT rate of 6% for individuals, but there are changes for people who buy a rebuilt home through a construction promoter. They must now pay the standard rate of 21%.
Fortunately, there is good news for the 2024 housing changes. If you purchased a rebuilt home through a construction promoter and applied for the permit to rebuild before July 1, 2023, you can still take advantage of the lower rate. This also applies to all payments made before the end of 2024.
In addition, there is a transitional arrangement for both individuals and businesses in the 32 center cities with a permanent reduced VAT rate of 6%. The condition is that the permit for the reconstruction of the house has been applied for before 2024. Again, all invoices and payments must be made before the end of 2024.
Also good news for housing changes 2024!
The government is extending the extra premium for asbestos removal combined with wall or roof insulation. It amounts to 8 euros per square meter. You can submit your application now until the end of 2025. No end date has yet been set for roof insulation with asbestos removal.
In addition, if you plan to take out a mortgage loan, there will be less filing fees. From 2024, banks will be allowed to give only 350 euros in filing fees. If you choose to refinance in the process, these fees will also drop from 250 to 175 euros.
Meanwhile, energy prices on the market have already normalized a bit better, which means that from October 2023, rents for homes with energy labels D,E or F may be indexed again.
So while the housing changes 2024 bring significant changes to the Belgian real estate sector, with falling rates for the My Renovation Premium and the end of the reduced VAT rate on solar panels, positive announcements remain. The retention of the reduced rate for heat pumps and the extension of premiums for asbestos removal offer new opportunities.
Want to know more about all the 2024 housing changes? Then surf to bisbeurs.be & De Tijd. If you want to learn more about a home loan and Christmas trends for the end of this year, be sure to check out the full website!
Would you like to cite this article as a source? Then use:
Deferm, S. (2023, Nov. 28). Housing changes 2024. Apartment.be. Consulted on (date XX/XX/202X), from https://www.appartement.be/woningveranderingen-2024