Available tax incentives
The main incentives for renovating a rental property in Belgium are: regional grants (RENOLUTION, housing grants, Mijn VerbouwPremie), 6% reduced VAT for renovations of properties older than 10 years (instead of 21%), and property tax reduction for unproductive property during works. Company owners can additionally fully deduct renovation costs.
| Incentive | Benefit | Condition |
|---|---|---|
| Reduced VAT (6%) | Save 15% on renovation costs | Property 10+ years old |
| Regional grants | Direct subsidy (varies) | Varies by region |
| Property tax reduction | Proportional reduction | 90+ days uninhabitable |
| Company deduction | Full tax deduction | Company ownership only |
How to apply
Reduced VAT: provided automatically by the contractor. You must provide a certificate confirming the property is at least 10 years old and is used for housing. The contractor applies 6% instead of 21% on the invoice.
Regional grants: apply through the regional online portal (before or after works, depending on the region). Required documents typically include the quote, invoice, proof of payment, and energy audit.
Property tax reduction: notify the regional tax authority when the property becomes uninhabitable due to works. Provide the building permit and contractor start date.
EUR 50,000 roof renovation on a 30-year-old apartment. VAT saving: EUR 7,500 (6% vs 21%). Regional grant: EUR 5,000-10,000 depending on region. Property tax reduction for 4 months of works: approx. EUR 400. Total benefit: EUR 12,900-17,900.
Cumulation rules
Most incentives can be combined:
- 6% VAT + regional grants: allowed in all regions
- 6% VAT + property tax reduction: allowed
- Regional grants + property tax reduction: allowed
- Federal + regional incentives: generally allowed (check specific programme rules)
Some regional grant programmes cap the total public aid at a percentage of the total investment. If you combine multiple grants and the 6% VAT, verify that you do not exceed the maximum aid threshold.
Start by obtaining the regional grant approval before beginning works. Some programmes require prior approval, and retroactive applications may be rejected.
Regional specifics
Brussels-Capital Region
The RENOLUTION programme (merged from former Primes Energie and Primes Renovation) offers grants for insulation, heating, ventilation, renewable energy and facade works. Income-based amounts with higher aid for lower incomes.
Walloon Region
Walloon housing grants cover energy renovation (insulation, heating, ventilation) and structural works (roofing, humidity). An energy audit (PAE2) is required for most energy grant applications. Income-based modulation.
Flemish Region
Mijn VerbouwPremie covers roof and cavity wall insulation, glazing, heating systems and structural renovation. The programme is the most digitalised, with online application and tracking. EPC certificate often required.
Article 1 Royal Decree 20 (reduced VAT), regional grant legislation (ordonnances, decrets), Articles 257 to 259 CIR 92 (property tax reductions) — Texts on Justel