Property: what is changing in 2019

source: l’Echo

1. Option to charge VAT on rentals

If you are a professional landlord and let your property to a professional tenant, you may charge them VAT from 1 January.
However, this VAT scheme is optional and subject to strict criteria:

• Only for new builds or major renovations, except for warehouses and storage spaces, where existing properties may also be subject to VAT.
• Only for professionals who use the property for their business activities. In the case of a mixed-use building (business and private), only the part used for business purposes will be subject to VAT.
• To qualify for the optional VAT scheme, construction of the project must have commenced after 1 October 2018 (excluding plans, planning applications and foundations).
• Only if both parties agree and include a clause concerning VAT in the lease.

2. New co-ownership law

This new co-ownership law, which will come into force on 1 January, aims to simplify the management of common areas.

• The majority requirements are being relaxed to facilitate the decision-making process. For works in common areas, the required majority will be reduced from 3/4 to 2/3. For works required by law (compliance work, fire safety standards, etc.), a simple majority will suffice instead of the 3/4 previously required. For more substantial demolition work (which previously required the agreement of all co-owners), the required majority will be reduced to 4/5, unless the request is unreasonable in terms of cost or necessity.
• More flexible internal regulations, allowing amendments to be made without having to go through a notary to amend the articles of association.
• A mandatory reserve fund amounting to 5% of the previous year’s common charges, enabling minor works to be carried out more easily. For new builds, this obligation applies from the fifth year onwards. However, if 4/5 of the co-owners reject this fund, it need not be established.
• The new law also allows partial associations in large-scale developments; co-owners may make decisions by block or wing regarding the management of their common areas.
• Those who pay decide. Co-owners who alone pay for a common area that they have the use of may now make decisions on their own.

3. Rent allowance in Brussels

Prospective social housing tenants whose income is below the RIS threshold will be entitled to relocation assistance and a contribution towards their rent; the amounts may vary.

4. Transfer of information in the event of a move or death

In the event of a move or death, a new service offered by the National Register will facilitate the transfer of your information to certain providers (insurance companies, telecommunications providers, public utilities, etc.). This information will only be transferred with your explicit consent.