6% VAT rate made permanent: an opportunity for savvy investors

As summer is in full swing, a fresh breeze of opportunity is blowing in the direction of savvy investors. No beach chairs or cocktails—just concrete, plans, and returns. Why? Because it’s now official: the 6% VAT rate on demolition and reconstruction has been permanently enshrined in law as of this summer.

So: goodbye to the 21% VAT on your construction value, hello to significant savings. What’s left? Lower upfront costs, higher margins, and real estate projects that suddenly become much more attractive. We asked Deborah Coppens, a new-construction specialist at Living Stone, why now is the perfect time to switch from summer mode to investment mode.

What does this mean for you, as an investor?

Deborah Coppens: “The new, permanent scheme offers you, as an investor, greater certainty and flexibility. Whereas previously only private individuals benefited from the low VAT rate for the demolition and reconstruction of their own homes, since July 1, investors (both private individuals and those acting through companies) may also take advantage of this favorable rate—provided the property is rented out for at least 15 years. Whether you rent to private individuals, through a social rental agency, or a social housing authority: this opens doors.” 

• You pay 6% instead of 21% VAT on the construction value of a new home after demolition

• Investors are also eligible—provided you rent out the property for at least 15 years

• Renting to private individuals as well as through social housing agencies or housing associations is permitted

• New sales agreements and deeds must include certain mandatory provisions—we’ll make sure everything is in order

💡 Good to know: The new regulation has been in effect since July 1, 2025, thanks to an administrative grace period. The official effective date will be the date of publication in the Belgian Official Gazette (expected within two weeks).

What should you look out for? Could you list the most important terms and conditions for us?

Deborah: “Well, there are certain conditions attached to the new regulations for property developers and project developers. I’ll list them for you below: 

• The home may have a maximum of 175 m² of living space. Unless you’re renting it out through a social housing program, in which case it can be up to 200 m². And keep in mind: only living areas count toward this total. So don’t include bathrooms, hallways, or garages—that can make a big difference! 

• The reduced VAT rate applies only to the buyer’s sole primary residence. So if you’re a private individual who owns multiple homes, you can apply that reduced rate to only one property: the one you live in yourself. However, if you’re an investor and you rent out properties, that rule doesn’t apply to you. As an investor, you’re eligible for the reduced rate on all your rental properties, provided certain conditions are met.

• And here’s another practical point: the VAT rate you pay depends on the date on the invoice. So even projects that are currently subject to 21% VAT may fall under the 6% rate starting July 1.”

What does this mean for your investment?

Deborah: “A home priced at, say, €300,000 with a 21% VAT rate means €63,000 in additional costs. At a 6% VAT rate, you’d pay just €18,000. That’s a savings of no less than €45,000! This is money you can invest in higher-quality finishes, energy-efficient technologies, or simply a solid return on your investment. With rising real estate prices and construction costs, this is a unique tax advantage that immediately makes your investment more attractive.”

"As you can see, this permanent policy is a huge boost for investors. It lowers the initial costs, increases profit margins, and aligns perfectly with the demand for sustainable rental properties. In my opinion, now is the perfect time to get involved and future-proof your real estate portfolio."

Deborah, what exactly are the formalities involved in applying that 6% VAT?

Deborah: "Good question! To apply the reduced VAT rate, the buyer and seller must jointly sign the appropriate documents and forms. This usually happens before the preliminary handover of the property. It’s standard procedure, so don’t worry. At Living Stone, we guide our investors through the entire process to ensure everything goes smoothly and correctly."

Are there any services or costs that are not subject to that 6% VAT rate?

Deborah: “Yes, that’s important to know. Not all projects qualify for the reduced rate. For example, landscaping, swimming pools, or the installation of fossil fuel-powered boilers—those are still taxed at 21%. You also usually have to pay registration fees on the purchase of land; in Flanders, for example, it’s 12%.”

Our projects at 6% VAT—your opportunity

“At Living Stone, we offer a selection of new-construction projects that fully meet the requirements for the 6% tax scheme. In other words: a guaranteed return on investment. Each location has been carefully selected and designed with a focus on future returns.”

• Plume: New-construction apartments in Asse – only 3 left! 

• Scharpé - new-construction apartments in Betekom 

• Chalet d'Assche - BEN apartments in Asse - 60% already sold 

• Den Botanniken Hof - New-build home in Aalst 

• Crown Park - New-construction apartments in Zaventem 

• Achter Grijpen - Luxury Apartment in Tienen Kumtich 

Ready to build your wealth? Interested? Our new construction specialists are here to provide you with personalized advice on the options available and which projects best align with your investment strategy.