Real Estate Changes in Belgium 2025: Key Updates to Know

2025 brings significant changes to the real estate landscape. From reduced registration duties to new rental obligations and an increase in cadastral income, here’s everything you need to know to prepare for the impact on your finances.

1. Lower Registration Duties in Wallonia

Starting January 1, 2025, the registration duties for the purchase of a primary and sole residence in Wallonia will drop from 12.5% to 3%. This reform aims to make homeownership more affordable but comes with the elimination of certain existing benefits, including:

• The housing check (“chèque-habitat”).
• The tax reduction on registration duties (up to €5,000).
• The reduced 6% rate for modest homes.

Conditions to Qualify for the 3% Rate:

• The buyer must not own any other residential property in full ownership.
• The primary residence must be established within 3 years for an existing property or 5 years for a building plot.

Caution: If the property is sold or vacated within three years, additional registration duties will be required (the difference between the standard 12.5% rate and the reduced 3% rate).

2. New Rate in Flanders: 2%

In Flanders, registration duties for a primary and sole residence will be reduced to 2% starting January 1, 2025. However, this reduction is accompanied by removing the special 1% rate previously applied to properties undergoing energy-efficient renovations.

3. Regional Registration of Leases in Brussels

From January 1, 2025, property owners in Brussels will be required to register their lease agreements on a new regional platform called “Irisbox,” under the “Irisrent” section.

Key Details:

• Registration will be free.
• It is mandatory to index the rent or increase it following renovation work.

The following information will be required:

• Identity of the landlord and tenant.
• Detailed property description (address, cadastral parcel, area, amenities, etc.).
• Contract details (date, duration, rent amount, and charges).

4. Mandatory Smoke Detectors in Brussels

As of January 1, 2025, all properties in the Brussels-Capital Region must be equipped with compliant smoke detectors. This obligation applies to both rental properties and owner-occupied homes.

5. Increase in Cadastral Income: +3.14%

The cadastral income indexation coefficient will increase from 2.1763 to 2.2446 in 2025, representing a 3.14% rise. For example, a cadastral income of €1,000 will be indexed to €2,244.6. This will directly impact property tax calculations, alongside potential changes to municipal and provincial surcharges.

Conclusion

These fiscal and regulatory changes are set to redefine the real estate landscape in 2025. They call for careful planning to optimize your projects and comply with new requirements. As specialized lawyers, we are here to assist you in understanding and implementing these reforms effectively.