Real Estate Update - MARCH 2021 - Loyens & Loeff
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1
MARCH 2021
Real Estate
Update
The information provided in this publication does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available are for general informational purposes only. Information in the publication may not constitute the most up-to-date legal or other information. Readers should contact their attorney to obtain advice with respect to any particular legal matter. No reader should act or refrain from acting on the basis of information on this publication without first seeking legal advice from counsel in the relevant jurisdiction. Only your individual attorney can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation.
In this edition
Reform of property law
– Introduction
– Heavy repairs
In the spotlight
– VAT reform for demolition-reconstruction in the
residential sector
Last month in short
– Support measures for tenants of commercial
premises in Brussels
– Rent waiver: tax reduction
On the website
Reform of property law
5
Introduction
The law of 4 February 2020 containing Book 3 “Goods” of the new Civil Code has been
approved and shall enter into force on 1 September 2021 (with exceptions). It undoubtedly
introduces the most far-reaching reform of Belgian property law since the Code Napoleon
of 1804. The new Book 3 repeals, inter alia, the acts of 10 January 1824 on long-term lease
right and right to build.
With the new Book 3, the legislator wishes to better structure, modernize and integrate
(the rules of) property law into a single code. In addition, the legislator wants to create a
functional, useful and flexible set of rules with a new - sometimes delicate - balance between
contractual freedom and legal certainty.
This reform will surely be on top of your agenda. On our side, sharing knowledge is a top
priority and, on this topic, we are organizing the following sharing moments:
– A monthly update on a specific topic via this newsletter
– A series of breakfast webinar given in French and in Dutch
– A half-day seminar to go deeper into the new regulations on usufruct right (droit
d’usufruit/vruchtgebruikrecht), right to build (droit de superficie/opstalrecht) and long-
term lease right (droit d’emphytéose/erfpachtrecht), to analyse the tax aspects of these
new regulations and to comment on bankability of property rights structure. This seminar
shall be given in English.
Any questions or suggestions? Do not hesitate to contact us!
Ariane Brohez and Lien Bellinck
Real Estate Update 6
Heavy repairs
Under current law, there is no definition of the concept of “heavy repairs” applicable in the
context of all rights in rem. Indeed, article 606 of the old Civil Code (hereafter old CC) only
gives a limited number of examples of heavy repairs in the context of a usufruct right: “Heavy
repairs are those of heavy walls and ceilings, the renewal of beams and of entire roofs; also
the renewal of dykes and of retaining and closing walls in their entirety. All other repairs are
maintenance repairs” (own translation). These examples are very outdated and should be
explained in a modern way.
The new Book 3 of the new Civil Code (hereafter new CC) Repairs that affect the structure of the
changes the regime of heavy repairs based on 3 principles: property or its inherent components
1. Flexibility This category corresponds to the current concept of
The concept of “heavy repairs” is defined in a flexible “heavy repairs”, i.e. repairs that relate to the structure of the
manner instead of through examples. The new Book encumbered property. The new definition however adds
3 contains a new, open definition of the concept of that these repairs can also relate to the (structure of the)
“heavy repairs”. inherent components of the encumbered property.
2. Costs
In the context of a usufruct right, the costs of heavy Pursuant to article 3.8 § 2 new CC an “inherent
repairs are shared proportionately between the bare component” of a good is “a necessary element of that
owner and usufructuary. good which cannot be separated from it without affecting
3. Immediately enforceable obligation the physical or functional substance of that good”. Since
Under current law, there is much debate as to whether this definition is based not only on a physical criterion
the bare owner can be obliged to carry out heavy (incorporation) but also on a functional criterion, the
repairs during the term of the usufruct. question arises of how to apply it in the context of heavy
The new Book 3 puts an end to this debate and repairs. Does it mean that repairs to lifts, HVAC, central
clearly provides that the obligation to carry out heavy heating, electricity, stairs, roof,… must all be considered as
repairs is immediately enforceable: the bare owner can heavy repairs?
be obliged to carry out heavy repairs during the term
of the usufruct. Repairs of which the cost manifestly
exceeds the fruits of the property
“When the cost manifestly exceeds the fruits
of the property, the repair is also considered The explanatory memorandum to the law emphasizes
as heavy” that the fact that the works have a significant financial
impact is not sufficient to consider them as heavy repairs:
Pursuant to article 3.154 §1 new CC, heavy repairs are they must manifestly exceed the fruits of the encumbered
“repairs that affect the structure of the property or its property. The question however arises of how to apply this
inherent components, or the cost of which manifestly in practice. What are “the fruits of a good that must be
exceeds the fruits of the property” (own translation). repaired”?
Consequently, there are 2 categories of heavy repairs: With what costs should “these fruits” be compared? At
what time should this comparison be made? When are the
fruits “manifestly” exceeded?
These questions remain unanswered. We therefore
recommend to clarify the concept of “heavy repairs” in the
contract and to specify what arrangements the parties
wish to make with regard to repairs to lifts, HVAC, central
heating, …
Who is responsible?
Usufruct
Article 3.153 new CC states “the usufructuary is obliged
to carry out maintenance repairs to the property subject
to his usufruct right, which are necessary, in the short
or long term, to preserve the value of the property,
subject to normal wear and tear, age or force majeure”
(own translation). Consequently, the usufructuary is not
responsible for all maintenance repairs, but only for those
repairs which are necessary to preserve the value of the
property. In addition, the usufructuary is not responsible
for repairs caused by normal wear and tear, age or force
majeure.
“The usufructuary is not responsible for all
maintenance repairs”
The bare owner, for his part, is responsible for all heavy
repairs. There are however 2 situations in which the bare
owner is not obliged to carry out heavy repairs:
1. heavy repairs with regard to the constructions built
by the usufructuary and temporarily owned by him by
virtue of his accessory building right embodied in the
usufruct right.
2. heavy repairs in case the heavy repairs are solely
attributable to the usufructuary. It is however unclear
what “solely attributable to the usufructuary” means,
e.g. if damages were caused by third parties.
In addition, Book 3 provides that if the bare owner
carries out heavy repairs, he is entitled to demand from
the usufructuary a proportional contribution to the cost
of those works. This contribution must be calculated in
proportion to the value of the usufruct versus the value of
full ownership. Given the fact that the new legislation is not
completely clear, we recommend that the parties stipulate
in the usufruct agreement whether the bare owner can
claim a contribution to the costs of heavy repairs and,
if so, how this contribution should be calculated.
Long-term lease
The new Book 3 of the new CC puts an end to the
discussion about heavy repairs in the context of a
long-term lease. According to the new Book 3, the long-
Real Estate Update 8
term lessee must carry out all maintenance repairs and Conclusion
heavy repairs on the property subject to his long-term
lease right and on the constructions that he had to build, Clear contractual provisions on the maintenance and
so as not to reduce their value. In addition, the long-term repair obligations of the parties in the context of a usufruct
lessee must also take care of all the repairs relating to the right, long-term lease right and building right are of the
constructions that he has acquired or built without any utmost importance. In doing so, we recommend to clearly
obligation to do so, but that have become necessary for define the concepts of “maintenance (repairs)” and “heavy
the exercise of the other existing rights in rem granted on repairs”, and to clarify which repairs fall under these
the property. concepts in any case (lifts, HVAC, central heating,....).
The long-term lessor, for his part, has no obligation to We also recommend, in the context of a usufruct, to
carry out any repairs. Consequently, when drafting a provide whether a bare owner can recover part of the
long-term lease agreement, we recommend to be careful costs of the heavy repairs from the usufructuary and, if so,
to place (too) far-reaching (maintenance/repair) obligations how such compensation should be calculated.
on the long-term lessor.
With regard to long-term leases, be careful to place (too)
“In case of a long-term lease the lessee far-reaching (maintenance/repair) obligations on the
is responsible for maintenance as well as long-term lessor.
heavy repairs” A replay in French and Dutch of this seminar is available in
case you missed it.
Building right
You can register easily for our next breakfast seminar,
Since the holder of a building right is the temporary
on 25 March 2020, which will treat the legal aspects of a
owner of the constructions he built, he is responsible for
mortgage in case of split ownership.
all maintenance repairs and heavy repairs with regard
to these constructions that he is legally or contractually
Real Estate breakfast webinars | Loyens & Loeff
bound to do, as well as for the repairs necessary for the
exercise of the other existing rights in rem.
Ariane Brohez & Lien Bellinck
The grantor of the building right, for his part, is responsible
for all maintenance repairs and heavy repairs with regard
to his constructions that he is legally or contractually
bound to do, as well as for the repairs necessary for the
exercise of the other existing rights in rem.
In the spotlight
Real Estate Update 10
VAT reform for demolition-
reconstruction in the residential
sector.
Before 1 January 2021, only an individual who What is the ordinary regime for the
demolished and rebuilt his own home in one of the 32 residential sector?
urban areas covered by the law could benefit from a
reduced VAT rate of 6% on immovable work relating The acquisition of a new building with adjoining land,
to demolition and reconstruction. What changes from a professional constructor, will be subject to 21%
as from 1 January 2021 compared to the ordinary VAT. When dealing with a forward purchase subject to
regime described below? the Breyne Act, a distinction must be made whether the
construction works have begun. If the construction works
– There is no change to the existing measure, which on the house or flat have not yet started, the sale of the
means that demolition-reconstruction works will still land is not concomitant with the sale of the building. In this
be eligible for the reduced VAT rate of 6%, without case, the sale of the land will be subject to transfer tax.
any additional conditions and without any time limit Otherwise, both the sale of the land and the sale of the
(Preferential regime). building will be subject to 21% VAT.
– Until 31 December 2022, immovable works relating to For building works, the basic rule is the application of the
the demolition-reconstruction, borne by an individual 21% rate, with the possibility of applying the reduced rate
of his own dwelling located in Belgium but outside of 6%, subject to conditions,
these 32 urban areas, also benefit from the reduced
rate of 6%, with additional conditions (Territorial – for private housing: related to renovation works; and
extension). – for private housing for the disabled persons,
– Until 31 December 2022, immovable works incurred institutions for the disabled persons, social housing
by an individual or a legal entity relating to the and educational buildings: related to construction
demolition and reconstruction of a dwelling intended work, renovation work and demolition work.
for letting to or through a social real estate agency, There are four derogations to this ordinary regime.
also benefit from the reduced rate of 6% of VAT,
with additional conditions (Rehabilitation of dwellings Preferential regime
intended for social letting).
– Until 31 December 2022, sales to an individual of An individual who is going to incur the costs of immovable
a dwelling intended for own use benefit from the works relating to the demolition-reconstruction of his own
reduced VAT rate of 6%, subject to conditions (Sales dwelling will be able to benefit from the VAT reduced rate of
of dwellings intended for own use). 6% under the following main conditions:
– Until 31 December 2022, sales of a dwelling or
residential building intended for letting to or through a – it must be a residential building that is to be used
social estate agency benefit from the reduced rate of exclusively or primarily as a private dwelling;
6%, subject to conditions (Sales of dwellings intended – this building is located in one of these urban areas:
for social letting). Antwerp, Charleroi, Ghent, Ostend, Mechelen, Mons,
La Louvière, Sint-Niklaas, Seraing, Liège, Leuven,
Bruges, Courtrai, Roeselare, Aalst, Dendermonde,
Genk, Hasselt, Mouscron, Tournai, Verviers, Namur,
Brussels, Anderlecht, Saint-Gilles, Saint-Josse-ten-
Noode, Molenbeek-Saint-Jean, Schaerbeek, Forest,
Ixelles, Uccle and Etterbeek ; and– a specific declaration, accompanied by the building
permit and the construction agreement, must be
provided.
This reduced VAT rate of 6% applies only to immovable
works of “joint demolition and reconstruction”. The
demolition must be complete in the sense that it must
concern an entire building, regardless of its use, provided
that its consistency was significant, and that it is rebuilt as
a dwelling. The “demolition -reconstruction” is moreover
assimilated to a major transformation which affects the
essential elements of the structure of the old building,
so that demolition cannot be confused with a simple
renovation. The demolition and reconstruction must
be carried out together, which does not mean that the
demolition must precede the reconstruction, but the
reconstruction must take place on (at least for 50%) the
same cadastral parcel.
Territorial extension (new regime until 31
December 2022)
The benefit of the reduced rate of 6% for demolition and
reconstruction works is extended to all dwellings located
in Belgium. However, outside the abovementioned urban
areas, the following additional conditions will apply:
– the individual must establish his own and only dwelling
there for at least 5 years;
– the living area may not exceed 200 m².
The own dwelling is defined as a dwelling in which the
area used for the exercise of an economic activity may not
exceed 50% of the total area.
The dwelling must also be unique, in the sense that the
individual cannot have other buildings (even those located
abroad) used (even partially) as a dwelling over which
the owner can claim a right of ownership or a property
right. On the other hand, a building inherited as co-owner,
bare owner or usufructuary or as full owner at the time of
first occupation or first use of the dwelling or a building
which would be sold no later than 31 December of the
year following the year of first occupation or first use
of the dwelling, should not be considered as a building
“preventing” compliance with the unique dwelling condition.
If the 5-year period is not respected, the tax advantage will
have to be reimbursed to the State at the rate of 1/5th per
year remaining.Real Estate Update 12
Rehabilitation of dwellings for social letting
For future projects, for which a building permit has not yet
The benefit of the reduced rate of 6% for demolition and been applied for, however, it should be kept in mind that,
reconstruction work is also extended to dwellings thus if the planning application is submitted on or after 1 July
rehabilitated and intended for letting to or through a social 2022, the legislation has included an anti-abuse provision
real estate agency for a minimum period of 15 years. The which limits the amount of advance billing to a maximum
owner may be an individual or a legal entity. of 25% of the expected price of works subject to the
building permit. This limit does not apply to works actually
If the 15-year period is not respected, the tax advantage carried out in 2022.
will have to be reimbursed to the State at the rate of
1/15th per year remaining. Opportunities for social letting
Sales of dwellings for own use (new regime The temporary regime applicable to immovable works and
until 31 December 2022) sales of rehabilitated dwellings intended for social letting
offers a new opportunity for the sector. Thus, individuals or
The sale to an individual of a new building, which is part legal entities building or acquiring such dwelling, with the
of a redevelopment project involving the demolition and aim of letting it to or through a social real estate agency,
reconstruction of a building into a dwelling, also benefits will, depending on the measure concerned, benefit from
from the reduced rate of 6% VAT. The conditions are the immovable works or an acquisition subject to 6% VAT.
same as for the application of the 6% rate to immovable To the extent these owners do not have the right to
works, namely: deduct VAT, the tax cost is considerably reduced, since in
principle, immovable works and acquisitions are subject to
– the individual must establish his or her own and only 21% VAT.
dwelling there for at least 5 years;
– the living area may not exceed 200 m². Caroline Orban and Eugénie Mennig
If the 5-year period is not respected, the tax advantage will
have to be reimbursed to the State at the rate of 1/5th per
year remaining.
Sales of housing for social letting (new
regime until 31 December 2022)
The reduced rate of 6% also applies to the sale of
a dwelling or a residential building, which has been
demolished and rebuilt, to a buyer, whether an individual
or a legal entity, who intends to let the dwelling to or
through a social real estate agency for a minimum period
of 15 years.
If the 15-year period is not respected, the tax advantage
will have to be reimbursed to the State at the rate of
1/15th per year remaining.
Beware of deadlines
This measure concerns all projects where VAT is due in
2021 and 2022. Thus, the measure does not only concern
future projects for which invoices will be issued in the
next two years, but also current projects, provided that
the related invoices are issued as from 1 January 2021.
However, for those projects, it is compulsory to introduce
a specific declaration before 31 March 2021.Last month in short
Real Estate Update 14
Support measures for
tenants of commercial premises
in Brussels
By decree of 17 December 2020 (published in the Belgian Official Gazette on 5 January
2021) (hereinafter the Decree), the Government of the Brussels-Capital Region introduced
a support measure for retailers and craftsmen. The principle of this measure is as follows:
subject to compliance with the conditions set out in the Decree, the Region grants a loan
equivalent to 1 to 4 months’ rent, including charges, to any tenant who requests it.
This measure is intended to benefit both the tenants – commercial surfaces. As a result, and subject to meeting
who, besides a waiver of rental payments up to 4 months, the other conditions, all retailers, including those who have
will be able to benefit from a loan to finance the payment not been forced to close their establishment by application
of the monthly instalments for the first half of 2021 and/ of federal health regulations, will be able to apply for a loan
or the monthly instalments that have not been paid since from the Brussels-Capital Region.
April 2020 - and the lessors - who will have a payment
guarantee for the amount of the loan granted, with the “The Brussels scheme does not require
tenant’s loan being paid directly into the lessor’s account.
a full closure of the commercial activity
Conditions (contrary to the Flemish scheme).”
However, the Decree has provided for an exclusion for
To be eligible for this aid, several cumulative conditions
leases concluded with regional public lessors (bailleurs
must be met.
publics régionaux/gewestelijke publieke verhuurders) for
which the Brussels government has decided to suspend
A lease agreement prior to 19 March 2020 and
the rent (i.e. Citydev, the Port of Brussels, business
still in force
centers, etc.). In this case, no loans can be granted.
The tenant must have entered into a commercial lease
(this may also be a short-term commercial lease) or a
Establishment unit in the Brussels-Capital
similar legal structure (long-term lease right, right to build,
Region
usufruct) by which a commercial surface is made available
The lease agreement must relate to one or more buildings
against payment of a periodic fee. The commercial lease
located in the Brussels-Capital Region.
agreement must be registered, otherwise the tenant will
In addition, the tenant must, at the time of the application,
not be able to apply for a loan.
have registered the leased premises as a business unit
In addition, the agreement must have been concluded
(unité d’établissement / vestigingseenheid) with the
and in force since 18 March 2020 at the latest. It should
Crossroads Bank for Enterprises and must carry out an
be noted that the lease agreement must be in force at the
economic activity in it. No loan will be granted unless the
time of the application, but the Decree does not require the
leased premises for which a loan application is made are
lease to remain in force throughout the loan reimbursement
registered with the Crossroads Bank for Enterprises as a
period.
business unit (within the meaning of Article I.2.16° of the
Code of economic law).
Unlike the Flemish Region, which has also introduced a
system of conditional loans, the Brussels Region does
not impose any conditions on the compulsory closure of15
No rental arrears The waiver may cover rents from April 2020 to June 2021,
To apply for a loan, the parties (lessor and lessee) must and the months for which the rent is waived have not to be
provide a declaration stating that the lessee had no rental consecutive months.
arrears at 18 March 2020.
It should be noted that this condition of absence of rental “The landlord is paid directly by the
arrears only applies to the building for which a loan is
competent authority and obtains certainty
requested. If there are other agreements between the
same parties for which there is a rental arrears but relating on the payment of 1 to 4 months of rent.”
to other buildings, the rental arrears will not be taken into
account when applying for a loan. This waiver must be recorded in an amendment to the
It should also be noted that, according to the Brussels lease contract. The Decree provides that this amendment
Economy and Employment website, the loan application must take the form of a standard agreement (available on
must include a copy of the statements of account relating the Brussels Economy and Employment website) which
to the payment of the rent for January and February 2020. must be completed by the parties. This contract provides
However, this requirement is not included in the Decree. a framework for the waiver by the lessor of the collection
of rent due or to fall due and makes it subject to the
The lessor waives one or more month(s) of rent condition precedent that the tenant is granted the loan.
The lessor must accept to waive the collection of the rent The amount of the loan will depend on the number of
(including charges) for a period of one to four months. months’ rent waived by the lessor (see infra).Real Estate Update 16
The Tenant has not sublet more than half of the Loan payment and repayment terms
leased premises.
The Decree provides that a tenant who sublets more than The loan, once granted, is transferred directly to the
half of the premises leased between April 1, 2020 and lessor’s bank account. The Decree specifies that the
June 30, 2021 is not eligible for the loan. bank account in the name of the lessor must be a Belgian
account. This condition has been maintained despite the
Loan amount reservations expressed by the Council of State.
The Council of State considered that it was “unable to
The Tenant is free to choose the amount of the loan that ensure that the limitation to a Belgian bank account is not
will be granted, within the limits set by the Decree. in contradiction with the principles of European law on
The maximum amount of the loan is 4 months’ rent freedom of movement”.
(including charges). However, the total amount of the loan The Loan is repaid, and interest shall be paid by the Tenant
can never exceed EUR 35,000. in 18 equal monthly instalments, the first instalment being
The maximum amount of the loan also depends on the due 6 months after the Loan is granted. The interest rate is
number of months’ rent waived by the lessor: the loan may 2% per annum.
only cover more than two months’ rent (including charges)
if the Landlord has waived more than one month’s rent Exclusions and early repayment
(including charges):
The Decree provides for 4 cases of exclusion for which
Number of months that Number of months that no loan will be granted. In addition, if a tenant has been
the lessor waives can be covered by the granted a loan but falls into one of these cases of exclusion
before the loan has been fully repaid, the tenant will be
loan granted to the
required to repay the loan in advance.
tenant
The 4 cases of exclusion are as follows:
1 month 1 month or 2 months – The Tenant does not comply with all applicable
2 months 1 month, 2 months, 3 obligations in the areas of environmental, social and
months or 4 months labor law.
3 months 1 month, 2 months, 3 – The Tenant is bankrupt, is being wound up, has made
an admission of bankruptcy or is in any analogous
months or 4 months
situation under foreign regulations;
4 months 1 month, 2 months, 3
– The Tenant has intentionally provided incorrect
months or 4 months information;
– The Tenant is in one of the cases referred to in Article
Source : Loan oncommercialrent |BruxellesEconomie et 3, § 1, Sub-Clause 1 of the Ordinance of 8 October
Emploi(economie-emploi.brussels) 2015 laying down general rules on the retention,
recovery and non-liquidation of employment and
“In addition to the benefit of the remission economic subsidies, as long as he does not return the
of rent by the landlord, the tenant also subsidies referred to in that Ordinance in accordance
benefits from the advantage of spreading with the rules referred to in Article 4 thereof.
the payment of the rent over a period of two
years.” Formalities
It should be noted that a retailer may be granted several The deadline for submission of applications is 30 June
loans if he has concluded several lease contracts with one 2021. Loans are granted in chronological order of receipt
or more lessors. However, the cumulative amount of all of applications. All the formalities required for applications
loans may never exceed 35,000 euros. are available on the website of Brussels Economy and
The granting of loans is limited to the available budget of Employment : Commercialrentloan : Bruxelles Economie et
EUR 27,000,000. It is therefore advisable to apply for a Emploi (economie-emploi.brussels).
loan as soon as possible.
Guillaume Carrozza17
Rent waiver: tax reduction
On Friday, 12 February 2021, the Belgian Government approved an extensive support
package to allow companies to bring the crisis to a successful end. For landlords and
tenants of commercial premises, the tax reduction in the event of a rent waiver is particularly
noteworthy.
What we know Under these schemes, the tenant can take out a loan from
a public institution to finance few months of rent,
The measure, as announced, provides for a 30% tax if the landlord agrees to waive a specific number of rents
reduction for the landlord who grants a remission of rent in exchange. It appears to be almost certain that this new
for the months of March, April and May 2021. tax relief can be combined with the commercial lease loan
During the press conference, the Minister of Finance measure.
added that the tax reduction given on the amount of the
waived rent would be limited to EUR 5,000 per contract “It seems that the new tax reduction can be
and to an overall of EUR 45,000 per landlord. combined with the Flemish and Brussels
What do we suspect? commercial lease loan”
It is also to be expected that, following the example of the
Although little is currently known about the planned
commercial lease loan, the measure will only be open to
measures, there are already some rules that we suspect
leases that had no arrears at the beginning of the crisis
will appear in the final law.
(18 March 2020). The landlord will have to make a
declaration to this effect.
It is firstly logical to assume that the landlord and the
tenant will have to reach an agreement on the remission.
This agreement will undoubtedly have to include the exact
For whom
amount of the remission in the first instance
We expect that the measure will only be open to
commercial leases (possibly extended to similar
“The landlord can benefit from a tax agreements covered by the commercial leases legislation).
reduction of 30% of the rent that was By way of comparison: the commercial lease loan is not
waived. The maximum amount per available for agreements relating to, for example, offices or
warehouses.
acontract will be EUR 5.000 and the overall
maximum will be EUR 45.000” It is less clear whether the measure will be limited to
tenants who had to close their doors completely due to the
This condition was already foreseen in the framework lockdown. It is the case for the commercial lease measure
of the commercial lease loan measure, granted by the in the Flemish Region, but not in the regime implemented
Brussels Capital Region and the Flemish Region. by the Brussels Capital Region.Real Estate Newsletter 18
Other related measures
Coincidentally, in January, the Accounting Standards
Commission published a draft recommendation on the
accounting treatment of a rental waiver in the framework
of the Covid pandemic. According to this draft advice, it
would be allowed for the landlord to deduct directly such a
waiver from the rent to be received in one go,
in deviation from the principle stating that benefits granted
to the tenant should be booked and straight-lined over the
duration of the lease.
“The waiver of the rent can, from an
accounting point of view, be deducted in
one go.”
We also note that, on 12 February 2021, the Flemish
government has decided to further extend the current
regulation on the commercial lease loan. The deadline for
the application is extended to the end of June (instead of
the end of March) and the loan can cover rent until the end
of 2021 (instead of the end of June 2021).
Hold on a little longer
The moratorium on bankruptcies was lifted on 31 January
2021. To prevent the end of this moratorium from leading
to a peak in bankruptcies, the tax administration has
already announced that - barring exceptions - they will
not instigate bankruptcies when collecting tax debts.
The FPS Social Security has already granted several
postponements for social contributions.
Apart from these two major creditors, rent is probably the
biggest overhead cost for a company that has to remain
closed. With this measure, the government hopes to save
companies that, with the end of the crisis in sight, still
threaten to go under.
We will continue to follow the development of this bill for
you.
Antoine Béchaimont19
On our websiteDiscover more: Forward purchase and Forward funding: what’s in a name? Support measures for tenants of commercial premises in Brussels Replay of our Real Estate webinar : Heavy Repairs in French Replay of our Real Estate webinar : Heavy Repairs in Dutch Participate to our next Real Estate webinar: Register here!
21
About Loyens & Loeff Authors of this edition
We are an international law and tax firm with cross-border Ariane Brohez: ariane.brohez@loyensloeff.com
expertise in a wide range of sectors. Our specialists in Lien Bellinck: lien.bellinck@loyensloeff.com
Belgium, Luxembourg, The Netherlands and Switzerland Guillaume Carrozza: guillaume.carrozza@loyensloeff.com
are recognised for their in-depth knowledge and unique Antoine Béchaimont: antoine.bechaimont@loyensloeff.com
approach, integrating tax and legal advice. Caroline Orban: caroline.orban@loyensloeff.com
Eugénie Mennig: eugenie.mennig@loyensloeff.com
A unique approach
Tax and law are heavily intertwined. That is why we
integrate these fields of expertise as much as needed. It
results into high-end, extremely efficient solutions for our Responsible publisher
clients. As an independent full service law firm we assist
multinationals, SME’s, entrepreneurs and private clients Christophe Laurent, Avenue de Tervueren 2 / Tervurenlaan
internationally and locally. We offer our clients integrated 2, B-1040 Brussels.
tax and legal solutions. Our clients inspire us. And that
makes the difference. Don’t hestitate to get in touch with your usual contact
person for more information on the topics covered.
Independent cross-border expertise
Our international focus results into cross-border expertise.
We advise our clients in implementing their business
objectives in order to create tax and legal efficiencies.
Consequently it empowers them to grow their business.
Additionally we maintain excellent relationships with the
most prominent law practices worldwide, and we are
highly regarded for being able to work seamlessly together
with them on cross-border matters.
In-depth knowledge of business sectors
We have long-lasting and in-depth knowledge of practically
all business sectors. As soon as we believe we have
developed a thorough and an exhaustive expertise related
to a specific industry sector, we build a dedicated team to
further expand those specific competencies and know-
how. By combining this knowledge with our international
focus and tax and legal expertise, we provide our clients
the best advice on a local and a global level.LOYENSLOEFF.BE As a leading firm, Loyens & Loeff is the logical choice as a legal and tax partner if you do business in or from the Netherlands, Belgium, Luxembourg or Switzerland, our home markets. You can count on personal advice from any of our 900 advisers based in one of our offices in the Benelux and Switzerland or in key financial centres around the world. Thanks to our full-service practice, specific sector experience and thorough understanding of the market, our advisers comprehend exactly what you need. Amsterdam, Brussels, Hong Kong, London, Luxembourg, New York, Paris, Rotterdam, Singapore, Tokyo, Zurich
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