Improving energy performance of buildings has become a key goal in managing energy demand. In this context, Europe produced the Energy Performance of Buildings Directive (EPBD). Flanders (Belgium) converted this directive into the 'Energy Performance and Interior Climate' (EPB). Taking into account this EPB standard, this study will undertake a cost analysis of different heating systems (condensing gas boiler, non-condensing gas boiler, oil boiler, and heat pump) and ventilation systems (with or without heat exchanger) and investigate their influence on the E-level. The analysis is performed for three representative types of dwellings in Flanders: a terraced, semi-detached and detached dwelling. The analysis clearly indicates that a condensing gas boiler in combination with the heat exchanger is most advantageous: it is the cheapest heating system and generates the lowest E-level. This makes the condensing gas boiler the best choice for all dwelling types. (C) 2012 Elsevier Ltd. All rights reserved.