Investing in rental renovation in 2025: what Belgian taxation provides

In 2025, renovating a property intended for rental remains a particularly relevant strategy in Belgium. In addition to improving the comfort of occupants and the value of the property, it allows you to benefit from advantageous tax schemes, comply with increasing legal obligations, and meet a growing rental demand.

Whether you own a rental building, an apartment, or a single-family home for rent, discover in this article the current tax rules, the opportunities for regional aids, and the support offered by Avenir Rénovations to make your rental investment a profitable and compliant project.

Why invest in rental renovation in Belgium in 2025?

Several factors make rental renovation particularly attractive this year:

Increasing PEB requirements: poorly performing homes risk becoming unsellable or unrentable;
Regional aids still accessible to landlords under certain conditions;
Immediate value enhancement of the property: a renovated home rents faster, for more money, and with less turnover;
Specific tax niches allow for amortizing part of the costs.

Regulatory obligations for rental properties

1. Compliance with the regional housing code

Each Region imposes a minimum standard of health, safety, and energy performance for rental properties. In 2025, notable changes are expected:

In Wallonia:

Obligation to provide a valid PEB (and higher than F for new leases, progressively);
Compliance with the Walloon Housing Code (ventilation, electricity, sanitary comfort).

In Brussels:

Mandatory registration of leases with proof of PEB certificate;
Renolution program aiming for the gradual prohibition of PEB F and G.

In Flanders:

Obligation to improve the PEB to minimum D within 5 years after acquisition for E or F properties;
Energy-intensive homes ineligible for certain subsidies without corrective work.

2. Control of installations

The gas, electricity, heating, and ventilation installations must meet standards. Any renovation must include compliance updates if necessary.

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Why invest in rental renovation in Belgium in 2025?

Several factors make rental renovation particularly attractive this year:

Increased PEB requirements: poorly performing housing may become unsellable or un-rentable;
Regional aids still accessible to landlords under certain conditions;
Immediate value increase of the property: a renovated property rents faster, at a higher price, and with less turnover;
Specific tax niches allow for amortization of part of the costs.

Tax advantages for landlord owners

1. Deductibility of actual expenses

If you opt for the actual rental income regime (rather than the indexed cadastral income), you can deduct:

The maintenance and repair costs;
The loan costs (interest) incurred for the work;
The fees of the architect or company.

⚠️ This regime involves a more complex declaration but can prove much more advantageous for significant renovations.

2. Reduced VAT at 6% for renovation

As with owner-occupied homes, 6% VAT applies if:

The property is over 10 years old;
It is designated for housing;
The work is carried out by a registered company;
It is not a rental for exclusive professional use.

3. Regional grants accessible to landlord owners

Contrary to popular belief, grants are not reserved for occupants. Private landlords can benefit:

from the Housing grant in Wallonia;
from Renolution aids in Brussels;
from the Mijn VerbouwPremie in Flanders.

These grants vary according to the tenant's income in certain cases (social housing, moderately priced housing).

Priority work to optimize the profitability of a rental property

1. Energy improvement

Roof and wall insulation, replacement of frames;
Installation of energy-efficient systems (heat pumps, condensing gas boilers);
Adding photovoltaic panels.

2. Comfort and safety

Compliance with electrical and gas standards;
Effective ventilation;
Renovation of water rooms (bathroom, kitchen).

3. Space optimization

Conversion of attics into living space;
Creation of additional water rooms;
Acoustic insulation (criteria appreciated in collective buildings).

Avenir Rénovations: a strategic partner for landlords

Investing in a rental renovation requires coordinating technical, tax, regulatory, and profitability aspects. This is why many landlords turn to Avenir Rénovations to manage their project.

Our support includes:

Initial property assessment: general condition, energy performance certificate, compliance;
Development of a targeted work plan, optimized for rental;
Preparation of the grant application (audit, forms, planning);
Budget estimation and return on investment;
Execution of the work by qualified professionals in all trades;
Respect for deadlines for quick re-entry into the rental market.

Your dedicated Project Manager becomes your unique contact, able to advise you at every step.

Concrete case: renovation of an apartment intended for shared housing in Namur

Starting situation:

110 m² apartment, energy performance certificate F, with outdated electrical installation and single glazing;
Rent of €620/month, difficulty in renting sustainably.

Work carried out with Avenir Rénovations:

Roof and wall insulation;
Replacement of frames;
Complete renovation of the bathroom and kitchen;
Compliance with electrical standards.

Result:

New energy performance certificate C;
Rent increased to €850/month;
Saved 2 months of rental vacancy per year;
Assistance received: Walloon Housing grant + 6% VAT;
Return on investment in 5 years.

Avenir Rénovations supports you in your rental renovation project

Rental renovation is a powerful lever for asset appreciation in 2025, provided that the technical, tax, and regulatory aspects are mastered. By improving the energy performance certificate, anticipating regional obligations, and taking advantage of public assistance, owners can transform an aging property into a profitable and secure asset.

With Avenir Rénovations, you gain access to comprehensive support designed for landlords: feasibility study, tax advice, planning, work, and administrative procedures. Everything you need to invest wisely, with complete peace of mind.

Are you considering renovating a rental property in Belgium?
Request your personalized quote now and entrust your project to a unique contact expert in rental renovation.