- The federal government has decided on a stimulus measure for the real estate sector within the Easter agreement.
- The 6 percent VAT rate can be applied to sales related to demolition and reconstruction projects.
- As of January 1, 2024, sales in these projects will no longer benefit from the 6 percent VAT rate.
- A transitional arrangement is extended until June 30, 2025, for projects with permit applications submitted before July 1, 2023.
- From July 1, 2025, the 6 percent VAT rate will be available again for these projects without time limitation.
- The VAT rate applies from July 1, 2025, in specific situations.
- The rebuilt home must be the buyer’s sole and primary residence with a maximum area of 175 square meters.
- This condition must be maintained until at least December 31 of the fifth year after first use or possession.
- If the condition changes within this period, a pro rata VAT benefit must be refunded.
- The home can also be rented to a social rental office or recognized social housing company.
- This condition must be maintained until at least December 31 of the fifteenth year after first use or possession.
- If the condition changes within this period, a pro rata VAT benefit must be refunded.
- The home can be rented for long-term residential use to a natural person with a maximum area of 175 square meters.
- Social conditions are stricter with a maximum area of 175 square meters for sole and primary residence or long-term rental.
- For builders creating a home after demolition for sole residence or long-term rental, the maximum area remains 200 square meters.
- The 6 percent VAT rate for homes intended for rental to natural persons is a significant expansion for investment projects.
- Conditions and correction mechanisms are in line with existing administrative modalities.
Source: tiberghien.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
