EPC restrictions on indexation by region
In Brussels: EPC E = limited indexation, EPC F and G = indexation frozen. In Wallonia: similar restrictions for E, F and G. In Flanders: EPC E and F trigger a reduced indexation percentage, but no complete freeze. Properties with labels A to D are not affected.
The restrictions aim to encourage energy renovation by reducing the financial return on energy-inefficient properties:
| EPC Label | Brussels | Wallonia | Flanders |
|---|---|---|---|
| A to D | Full indexation | Full indexation | Full indexation |
| E | Limited | Limited | Reduced |
| F | Frozen | Frozen | Reduced |
| G | Frozen | Frozen | Full* |
*Flanders does not restrict G-label properties in the same way.
How the restrictions apply in practice
The restrictions modify the result of the standard indexation formula:
Brussels (EPC E): the indexation is calculated normally but only a portion (typically 50%) of the increase can be applied.
Brussels (EPC F/G): the indexation calculation yields zero increase — the rent stays at its current level.
Wallonia: similar approach with regional-specific percentages.
Flanders: the indexation is calculated but multiplied by a correction factor (e.g., 50% for E, 25% for F).
Check your property’s EPC label before calculating indexation. If your label is E or worse, investing in energy renovation may be more profitable than the rent increase you are losing each year through restricted indexation.
How to improve your EPC label
Common renovations that improve EPC ratings:
| Renovation | Typical improvement | Cost range |
|---|---|---|
| Roof insulation | 1-2 labels | 5,000-15,000 EUR |
| Wall insulation | 1-2 labels | 10,000-30,000 EUR |
| Window replacement | 0.5-1 label | 5,000-15,000 EUR |
| Heating system upgrade | 1-2 labels | 5,000-20,000 EUR |
| Solar panels | 0.5-1 label | 5,000-10,000 EUR |
Regional subsidies and tax incentives are available for energy renovations, which can significantly reduce the net investment cost.
Regional specifics
Brussels-Capital Region
The Ordinance of 27 July 2017 introduced strict EPC restrictions. The Brussels Environment agency (Bruxelles Environnement) manages EPC certificates and provides renovation guidance.
Wallonia
The Decree of 15 March 2018 applies similar restrictions. The Walloon Energy Agency (SPW Energie) administers EPC certificates and renovation subsidies.
Flanders
The Flemish Housing Rental Decree of 9 November 2018 applies less restrictive EPC rules. The Flemish Energy Agency (VEKA) manages EPC certificates and the renovation obligation for Flemish properties.
Regional energy performance decrees and their implementing orders. EPC restrictions on indexation are a tool to incentivise energy renovation of the Belgian rental housing stock.