Flemish renovation obligation for non-residential buildings
April 2022 – Since 1 January 2022, there has been a "renovation" obligation in the Flemish Region when a non-residential building is transferred. This means that certain installations must be replaced within 5 years after the transfer. Also within 5 years after the transfer, the buildings must meet certain minimum energy requirements.
From 1 January 2022
On 9 July 2021, the Flemish Government approved the renovation obligation for non-residential buildings. This obligation implies that :
a) non-residential buildings and non-residential units must implement,
b) within 5 years at the latest
c) after the date of execution of the deed of transfer of full ownership, the establishment of a building right or long lease, and four energy renovation measures.
These 4 energy measures are as follows:
If a minimum R-value of 0.75 m²K/W for roof insulation is not achieved, the property must be provided with roof insulation with a maximum U-value of 0.24 W/m²K.
Single glazing must be replaced by glazing with a maximum U-value of 1 W/m²K.
All central heat generators that are part of a space heating system that is more than 15 years old must be replaced unless it can be demonstrated that the system meets the minimum installation requirements for renovation.
All cooling systems that are more than 15 years old and use refrigerants containing ozone-depleting substances or with a GWP of at least 2500 must be replaced with cooling systems that do not use such refrigerants.
Non-residential buildings and non-residential units
Are you dealing with a residential building or a non-residential building? To find out, you need to look at the factual situation. The purpose of the building at the time of the deed is decisive. It does not matter what you do with the building afterwards.
Moreover, we are talking about non-residential buildings and non-residential 'units'. It is therefore possible that you are only acquiring part of a building. In that case, the renovation obligation only applies to that unit.
In principle, all buildings are 'non-residential buildings', except:
residential buildings
industrial buildings for production and storage or handling of products
small detached buildings (with a usable floor area of less than 50 m²)
farms
churches
buildings that will be used for less than two years.
Typical examples of non-residential buildings are offices, shops, catering facilities, schools, care facilities, public buildings, etc.
5 years after the transfer
The obligation to renovate begins to run from the date of the deed of transfer of full ownership of the building. The obligation also applies in the event of the transfer or establishment of a building lease or long lease, but not if it is an extension of an existing building lease or long lease between the same parties. The obligation to renovate also does not apply in the case of a transfer of a building (or a building lease/perpetual lease) in the context of a merger or absorption. Similarly, where a building is demolished within five years of acquisition, there is - for obvious reasons - no obligation to renovate.
Minimum energy performance
In addition to the energy renovation obligation, non-residential buildings are subject to an obligation to achieve a minimum energy performance level - if they are transferred from 1 January 2022.
For small non-residential buildings, there is already an obligation to have an energy performance certificate (EPB) in case of sale since 1 January 2020. A non-residential building is considered small if the building with a main non-residential purpose has a usable floor area not exceeding 500 m².
In the event of the transfer of such small non-residential buildings and units under a deed received on or after 1 January 2022, the building must obtain, within 5 years after the deed of transfer (or establishment/transfer of a building right/leasehold), at least a C energy performance label. The purchaser is free to decide what measures he/she takes in addition to the minimum energy renovation measures to achieve this C label.
No EPB can yet be established in the case of the transfer of a large non-residential building. The EPB obligation will only apply to these buildings from 1 January 2023, but the energy renovation obligation already applies to them from 1 January 2022.
Fines
Anyone who fails to comply with the renovation obligation is liable to an administrative fine. This fine can range from 500 euros to 200 000 euros.
The fine is not a discharge. This means that the owner, the superficiary or the long leaseholder will be given a new deadline to comply with the renovation obligation.
