Renovating in Belgium: VAT Rules and Grants in 2026

Planning to renovate, build or rebuild a home in Belgium? The tax rules and financial incentives have changed in recent years, and some benefits mentioned in older articles are no longer available.

As of October 2026, homeowners should pay particular attention to the 6% VAT rate for renovation work, the rules for demolishing and rebuilding a property, and the reduced VAT rate for heat pumps. The rules depend on the type and age of the property, how it will be used, and whether the project meets specific conditions.

Here is what homeowners and buyers need to know before starting a project.

1. Is There Still a Home Battery Grant in Belgium?

The Flemish home battery grant has ended. It is no longer available for new installations.

In Flanders, home batteries generally had to receive their official inspection certificate by March 31, 2023, to qualify under the former scheme. The maximum grant for eligible installations inspected by that date was 850 euros, subject to the program’s conditions.

The application portal closed on December 1, 2024. The Flemish government states that it will close permanently on July 1, 2026, after which no further applications will be processed.

This means homeowners planning to install a battery in 2026 should not include the old grant in their budget. Anyone with an exceptional or previously submitted application should check the official guidance to determine whether any transitional arrangements apply.

The end of this grant does not mean that installing a home battery is always a bad investment. Its value depends on the purchase and installation cost, household electricity use, solar panel production and the ability to use stored electricity when it is most valuable.

2. Belgium’s 6% VAT Rate on Electricity and Natural Gas

Belgium permanently reduced the VAT rate on household electricity and natural gas from 21% to 6% on April 1, 2023.

The change was linked to an energy excise-duty reform intended to help soften the effect of major energy price fluctuations. The system distinguishes between basic consumption and additional consumption, and certain excise duties can change depending on energy prices.

However, a lower VAT rate does not guarantee that every household will see a lower bill. The final amount still depends on energy consumption, the supplier’s contract, distribution charges, taxes and other costs.

For homeowners planning renovations, it is also important to distinguish between VAT on energy bills and VAT on building work. They are separate rules.

3. Solar Panels and Heat Pumps: What Is the VAT Rate?

Belgium introduced temporary VAT reductions in 2022 to encourage households to invest in renewable energy. Some of those measures have since expired or changed.

Solar panels and solar water heaters

The temporary 6% VAT rate for installing solar panels and solar water heaters in homes less than 10 years old ended on December 31, 2023. Homeowners should not assume that this temporary rate still applies to a new installation in 2026.

However, renovation work on a home that is at least 10 years old may qualify for the general 6% renovation VAT rate if all legal conditions are met. The exact treatment depends on the property and the work being carried out.

If you buy building materials yourself, the standard 21% VAT rate generally applies to those purchases, even if a contractor could have charged 6% when supplying and installing eligible materials as part of qualifying renovation work.

Heat pumps

There is a more recent development for heat pumps. In November 2025, Belgium’s Council of Ministers approved a measure to reintroduce the reduced 6% VAT rate for the supply and installation of heat pumps in or near homes. The measure applies from January 1, 2026, for five years.

This is an important change for homeowners considering a more energy-efficient heating system.

The reduced rate applies to qualifying heat pump installations, subject to the applicable rules. It should not be confused with the VAT treatment of every heating system. Since July 2025, the standard 21% VAT rate has applied to the specific components of heating installations powered by fossil fuels, including natural gas and heating oil, in the relevant renovation and rebuilding situations.

Before signing a contract, ask the installer to specify the VAT rate and explain which parts of the project qualify.

4. Demolishing and Rebuilding a Home: Can You Pay 6% VAT?

Demolishing an old property and constructing a new home can be expensive. Belgium has a permanent reduced VAT system for qualifying demolition and reconstruction projects.

The current framework took effect on July 1, 2025. It provides several routes to the 6% VAT rate, depending on whether the property is intended for the builder’s own use, social rental housing, private rental or sale.

The conditions differ by category.

Building a home for your own use

If you demolish a building and rebuild a home for your own use, the 6% VAT rate may apply if the conditions are met.

These include:

•  The rebuilt home must be your only and principal residence.
•  You must establish your official residence there and generally keep it there for at least five years.
•  The home’s habitable area must not exceed 200 square meters.

Rebuilding a property for rental

The reduced rate can also apply to qualifying rental projects, including social housing and certain private rental arrangements.

For eligible private rentals, the rules generally require the property to be rented for at least 15 years to an individual who establishes their official residence there. A maximum habitable area of 200 square meters applies to the relevant private rental category.

Separate conditions apply to social rental projects.

Rebuilding a property for sale

The permanent scheme also covers certain projects where a property is rebuilt for sale. The conditions depend on the intended use by the buyer or tenant, and a maximum habitable area of 175 square meters applies to relevant categories.

The rules are detailed, and not every demolition and reconstruction project qualifies. The standard VAT rate is generally 21% when the project does not meet the requirements.

Check the official conditions before assuming that the 6% rate applies to your property.

5. Can You Pay 6% VAT on Renovations in Belgium?

Yes. Renovation work on a home that is at least 10 years old can qualify for the reduced 6% VAT rate, provided the legal conditions are met.

The property must generally be used exclusively or mainly as a private home. Eligible work can include improvements, repairs, maintenance and renovations, both inside and outside the property.

The reduced rate can cover labor and materials supplied and installed by the contractor as part of eligible work. If you purchase the materials yourself, the standard 21% VAT rate generally applies to those purchases.

There are also exceptions. For example, cleaning services do not qualify as renovation work, and certain projects or components may be subject to different rates. The 6% rate no longer applies to the specific parts of qualifying fossil-fuel heating installations covered by the rules introduced in 2025.

Ask your contractor for a detailed invoice showing the VAT rate applied to the work.

6. Are Renovation Grants the Same Across Belgium?

No. Belgium’s renovation support system varies by region.

Flanders, Brussels and Wallonia have their own programs, eligibility rules and application procedures. A grant available to a homeowner in one region may not be available to someone living in another.

In Flanders, homeowners can check the current Mijn VerbouwPremie renovation support program and other available measures. Eligibility can depend on income, the type of property, the renovation work and technical requirements.

Do not rely on an old grant amount or deadline without checking whether the program is still open. Some schemes have been discontinued, while others have changed their conditions.

What Should Homeowners Do Before Starting Work?

Before committing to a renovation or rebuilding project in Belgium, take these steps:

1. Confirm the current VAT rate for every part of the project.
2. Check whether your property’s age and intended use meet the requirements.
3. Look up renovation grants available in your region.
4. Ask contractors for detailed quotes and invoices.
5. Calculate the full cost without assuming that an old grant or temporary tax reduction is still available.

Belgium’s construction and renovation rules have changed significantly since 2023. The former Flemish home battery grant is no longer available for new installations, the 6% VAT rate on electricity and natural gas has been permanent since April 2023, and the reduced VAT rate for qualifying heat pump installations returned in January 2026.

Homeowners may also benefit from 6% VAT on eligible renovation work or qualifying demolition and reconstruction projects. However, these benefits are subject to specific conditions, and not every property or project qualifies.

Checking the current rules before signing a contract can help you avoid unexpected costs and make a better decision about your home.