Global Daily Tax News, Belgium Again Amends VAT Relief Rules For Rebuilt Houses, (Jun 12, 2025)

The Belgian Government has announced changes to the eligibility criteria for accessing the concessionary rate of VAT for new homes built following the demolition of an existing structure.

Currently, taxpayers may benefit from a six percent rate of VA ...

The Belgian Government has announced changes to the eligibility criteria for accessing the concessionary rate of VAT for new homes built following the demolition of an existing structure.

Currently, taxpayers may benefit from a six percent rate of VAT where an old house is demolished and a new one is constructed in its place. However, social conditions are attached.

The rules for the regime were changed last year. The Government provided that individuals would have access to the concessionary VAT rate providing the home built is no more than 200 meters squared and that it is intended as their sole residence.

Alternatively, the Government provided that both natural and legal persons would be eligible providing the property built is then offered for long-term rental through a social housing policy.

From June 1, 2024, property built by real estate developers was specifically excluded from accessing the rate.

The Government has now announced that, from July 1, 2025, natural persons or legal persons will be afforded access to the six percent VAT rate only where the dwelling is sold:

to a natural person who will personally occupy the new accommodation as their sole residence, providing the habitable space does not exceed 175 meters squared;
to a natural or legal person who will provide the house for long-term social rental for a period of not less than 15 years; or
to a natural or legal person who will offer the property for long-term rental, of at least 15 years, immediately to a natural person, where the habitable space does not exceed 175 meters squared.

Global Daily Tax News, Belgium Again Amends VAT Relief Rules For Rebuilt Houses, (Jun 12, 2025)

The Belgian Government has announced changes to the eligibility criteria for accessing the concessionary rate of VAT for new homes built following the demolition of an existing structure.

Currently, taxpayers may benefit from a six percent rate of VA ...

The Belgian Government has announced changes to the eligibility criteria for accessing the concessionary rate of VAT for new homes built following the demolition of an existing structure.

Currently, taxpayers may benefit from a six percent rate of VAT where an old house is demolished and a new one is constructed in its place. However, social conditions are attached.

Alternatively, the Government provided that both natural and legal persons would be eligible providing the property built is then offered for long-term rental through a social housing policy.

From June 1, 2024, property built by real estate developers was specifically excluded from accessing the rate.

The Government has now announced that, from July 1, 2025, natural persons or legal persons will be afforded access to the six percent VAT rate only where the dwelling is sold:

to a natural person who will personally occupy the new accommodation as their sole residence, providing the habitable space does not exceed 175 meters squared;
to a natural or legal person who will provide the house for long-term social rental for a period of not less than 15 years; or
to a natural or legal person who will offer the property for long-term rental, of at least 15 years, immediately to a natural person, where the habitable space does not exceed 175 meters squared.