Buying a holiday home in Flanders: the renovation obligation and your plan

You are thinking of buying a second home to rent out, for example on the coast or in the Westhoek. You work out the purchase price, the furnishing and the expected income. But one item is often missing: the renovation obligation.

In Flanders, an energy renovation obligation has applied since 1 January 2023 to new owners of homes with a poor EPC (energy performance certificate). A holiday home or second residence falls under it too. This article explains what the rule says, when it applies and how to include it in your plan.

What the rule says

If you buy a house or apartment with EPC label E or F, you must improve the EPC to label D at least. You have six years from the date of the notarial deed. That period used to be five years. According to the Flemish government, the extension was finally approved at the end of 2025.

An example from the official explanation: if you sign the deed on 1 February 2024, you must be finished by 1 February 2030. It concerns the EPC of the home itself.

The obligation applies per dwelling unit. If you buy one apartment in a building, it concerns that apartment, not the whole building or the shared areas.

Does it apply to a holiday home?

Yes. According to the Flemish government, it makes no difference whether you are registered there, whether the home is lived in permanently or whether its use is recreational. A second home by the sea therefore falls under the same rule as an ordinary home.

That matters for investors. Many older apartments on the coast have an EPC that does not score well. The purchase price can take this into account, but only if you think of it beforehand.

When the obligation starts

The obligation starts with a notarial deed that transfers full ownership. That means a sale, an exchange, a gift or a contribution to a company. Establishing or transferring a building right or long lease (erfpacht) counts too.

There are exceptions. The Flemish government lists, among others:

• an inheritance, although an existing obligation passes on to the heir
• the transfer of shares in a company
• protected heritage
• a building demolished within six years
• the transfer of only the usufruct or only the bare ownership

If you resell the home within the period, the new owner takes over the remaining period and the requirements. It is therefore also something to keep in mind for your later resale.

What happens if you do nothing

If no EPC exists six years after the deed, or if the EPC shows that the required level has not been reached, the authorities can impose a fine. For a residential unit it ranges from €500 to €5,000. For a non-residential unit it can be much higher.

A fine does not remove the obligation. You get a new period in which to renovate anyway. The fine therefore comes on top of the work you still have to carry out.

Questions to ask the seller and your notary

A good conversation beforehand prevents costly surprises. Ask the following questions before you sign:

• What is the current EPC label and how old is the certificate?
• What work has been done in recent years, and are there invoices?
• Does the transfer fall under one of the exceptions, or does the six-year period simply start running?
• Is there already a renovation obligation running from a previous owner?

That last question is particularly important. An existing obligation passes on, including in the case of an inheritance. You then buy not only a home but also a period that is already running.

How to include this in your yield plan

Request the home's EPC before you make an offer, and look at the label. If the home is rated E or F, calculate the renovation as a real cost next to the purchase price.

Ask an energy expert or contractor for a first estimate. Think of roof insulation, new windows, better heating or ventilation. Nobody can give you a fixed amount without seeing the home. So keep a generous margin in your calculation.

Plan the work cleverly over time too. The six years leave you room to choose. Work in a quiet period costs you fewer lost rental nights. Your winter calendar is the best moment for this.

Finally, think of the higher quality of your home. A better insulated house is more comfortable and saves on energy costs. Guests notice that in the cold months, and it may show in your reviews.

Note: the rules may still change

The current coalition agreement announces that the obligation would stay limited to label D. The stricter steps that follow later would fall away. The Flemish government itself says it is unclear whether and when this will happen. The current schedule runs until 2045 and assumes stricter labels.

So do not count on a relaxation. Before you buy, check the current text on vlaanderen.be and ask your notary or the Flemish Energy and Climate Agency for advice. This article is about Flanders. For other regions, consult that region's official source.

YourDomi does not give official tax or legal advice. This article is general information: always discuss your own situation with your accountant.

What YourDomi can do for you

Is your purchase settled, or are you considering one? We are happy to look at what the property could earn as a holiday rental, so you can weigh the renovation against the expected income. Request a personal proposal.