The Belgian Federal Coalition Agreement for 2025-2029 under De Wever I: Summary with a Focus on Real Estate
The federal coalition agreement for 2025-2029 sets out ambitious reforms and measures in various policy areas. There is a strong emphasis on fiscal balance without tax increases, a significant reform of the labour market and pensions, and a focus on economic growth and sustainability. The proposed measures and reforms are intended to make Belgium more resilient and competitive, with a focus on social justice and sustainable growth.
Budget deficit and government debt
The federal government of Belgium has created a comprehensive program with the aim of improving the financial health of the country. The main objectives include reducing the budget deficit and reducing public debt. To achieve these goals, various reforms and measures are proposed aimed at improving the efficiency of public spending and increasing revenue without increasing the tax burden.
One of the key elements of the programme is the reform of public finances. The government is striving for structural budgetary consolidation by controlling expenditure growth and ensuring a fair contribution from the strongest shoulders. This means that there will be strict control and sanctioning to prevent abuse of social benefits and that tax rules will be adapted to contribute to a fairer and more sustainable financial system.
Labour market
The central objective is to increase the employment rate in Belgium towards 80% by 2029 and to increase productivity growth. To widen the gap between working and not working, a series of measures will follow. On the one hand, net wages will be increased for working people through a tax reform and, on the other hand, living wages and benefits for long-term unemployment will not be indexed during this legislature. The duration of unemployment benefits will also be limited to a maximum of 2 years.
Pensions
Without far-reaching reforms, the affordability of Belgian pensions is at risk of being seriously jeopardized. Already, an increasing proportion of government revenue is going to the payment of pensions. To address these challenges, reforms are needed to make the pension system more transparent and equitable and to ensure long-term financial sustainability. There will be a reform of the pension calculation, with more emphasis on periods actually worked, and an equalization of the pension calculation between the private and public sectors.
Taxes
In the area of taxation, the government wants to implement a reform that will reduce the tax burden for workers and entrepreneurs, and reduce tax complexity by removing smaller deductions and exceptions. All this with a focus on improving Belgium's purchasing power and competitiveness.
A new feature is a solidarity contribution or capital gains tax of 10% on the future realised capital gains of financial assets (including crypto investments).
Migration
The Federal Government is committed to a humane and controlled migration policy, and a stricter approach to illegal migration and abuse of social systems. Nationality is seen as a favour, not as a right.
Economy
Economic growth is supported by targeted investments in sustainable infrastructure and innovation, with a particular focus on the greening of industry. It also calls for a European competitiveness pact to boost economic growth and innovation and protect the competitiveness of European companies.
Sustainability
With regard to sustainability, the government is committed to an ambitious climate and energy policy. This includes investing in emission-free energy, making the economy more sustainable and the energy transition. In line with Europe, attention is also paid to the greening of the financial sector and the stimulation of sustainable investments.
Real Estate
For the real estate sector, the reforms are aimed at increasing supply and making the housing market more sustainable. The federal government aims to simplify the federal housing tax system and supports renovations with reduced VAT rates for demolition and reconstruction.
- For an effective renovation policy in the Regions, it is essential that projects by professional developers and investors can also benefit from the reduced VAT rate of 6% for demolition and reconstruction.
- The decision-making process for ACOs (Associations of Co-Owners) in apartment buildings with forced co-ownership will be adjusted to a simple majority for energy improvements. This lowers the thresholds for energy renovations and the installation of renewable energy sources, such as solar panels and charging stations.
- In addition, the federal government encourages ACOs to create a multi-year investment plan for climate-related expenditures so that owners can better understand planned investments.
- The federal government is exploring ways to help ACOs take out loans for energy renovations from financial institutions.
- The federal interest deduction for the non-owner-occupied home will be abolished.
The Federal Buildings Agency (Regie der Gebouwen / Régie des Bâtiments)
The Buildings Agency is being reformed into a professional entity for efficient and effective management of state patrimony. It is thus being investigated whether the Régie can function as a facility company for the federal government.
An inventory of federal real estate is drawn up, unused assets are reallocated or sold. A long-term plan for office space is being developed and there is a target to reduce rented office space by 15%.
The Régie aims for climate neutrality for real estate by 2050. Major renovations, such as the South Tower and the Palace of Justice, are being carried out to address security risks and achieve energy standards.
