EPC and rent indexation in Belgium
Impact of the EPC score on rent indexation: restrictions per region.
The link between rent indexation and EPC
Since 2022-2023, all three Belgian regions make the right to rent indexation conditional on the property’s EPC score. The principle is simple: the more energy-hungry the property, the less the landlord can index.
This measure pursues a dual objective: protecting tenants in poorly insulated dwellings (who already pay high charges) and encouraging landlords to invest in energy renovation.
The mechanism is linked to the EPC certificate of the property. Without a valid certificate, the landlord cannot prove the score and loses the right to indexation. The certificate must be issued by a certified assessor and annexed to the lease.
Indexation rules by region
Brussels
| EPC score | Indexation allowed |
|---|---|
| A to D | 100 % of the health index |
| E | 50 % of the health index |
| F or G | 0 % — indexation prohibited |
The mechanism has been in force since 1 November 2022 for all primary residence leases.
Wallonia
| EPC score | Indexation allowed |
|---|---|
| A to D | 100 % |
| E | Limited (75 %) |
| F or G | Prohibited |
Flanders
| EPC label | Indexation allowed |
|---|---|
| A+ to D | 100 % |
| E | Limited |
| F | Prohibited |
The exact rules vary slightly by region, but the principle is identical everywhere: the most energy-hungry properties are penalised. Consult our regional guides for details: Brussels, Wallonia, Flanders.
Calculation of financial impact
The impact of lost indexation is often underestimated. Here is a concrete example over a 9-year lease:
| Scenario | Initial rent | Annual indexation (2.5 %) | Rent year 9 | Cumulative gain over 9 years |
|---|---|---|---|---|
| Score C (100 % indexation) | EUR 900 | 100 % | EUR 1,098 | +EUR 14,256 |
| Score E (50 % indexation) | EUR 900 | 50 % | EUR 996 | +EUR 7,128 |
| Score F (0 % indexation) | EUR 900 | 0 % | EUR 900 | EUR 0 |
The difference between a C-rated and F-rated property represents EUR 14,256 in lost rental income over 9 years. This amount often exceeds the cost of works needed to improve the EPC.
Missed indexations are lost forever. Even if you improve the EPC during the lease, you cannot recoup the years without indexation. Every year that passes without works is an irrecoverable loss.
Recovering the right to indexation
To regain the right to full indexation, the landlord must:
- Carry out the necessary energy improvement works
- Obtain a new EPC certificate attesting a sufficient score (D minimum for full indexation)
- Notify the tenant of the improvement and new certificate
- Apply indexation from the next lease anniversary following the certificate issuance
The new indexed rent is calculated on the current rent (unindexed since the limitation), not on the rent that would have been reached with full indexation. Lost years remain lost.
Strategy for the landlord
Indexation is a powerful mechanism for protection against inflation. Losing it for several years can cancel the profitability of a rental investment.
Quick calculation: multiply your monthly rent by 0.025 (average inflation) then by the number of years without indexation. A rent of EUR 900 unindexed for 5 years means approximately EUR 5,500 in lost income. If insulation works cost EUR 15,000 with EUR 5,000 in grants, the ROI through indexation alone is reached in 9 years. Add the rent increase and reduced vacancy, and the payback drops to 5-6 years.
Act now. The longer you wait, the more lost indexations accumulate. The minimum score is rising in all three regions: works will become mandatory sooner or later.
Centralise the tracking of your EPC certificates and indexations in a rental management software to miss no deadline.