Only 200 days left until the 6% VAT rule for demolition and reconstruction expires: 5 questions for our new construction specialists

The year is flying by, and we’re already halfway through 2024. As the days tick away, the end of an important chapter is also approaching: the 6% VAT rule for demolition and reconstruction, which expires on December 31, 2024. Do you still want to take advantage of this unique benefit? Then now is the time to take action! We posed five pressing questions that everyone is asking to our new construction specialists, Deborah Coppens and Jonas Herbiest. Discover their insightful answers and the ins and outs of this scheme here.  

1. What exactly does the 6% VAT rule entail?

Deborah: "Through the end of 2024, a temporary VAT rate of 6%—instead of 21%—applies to the demolition and reconstruction of a private home or apartment throughout Belgium. This means that, if you qualify, you can purchase a newly built home at a much lower VAT rate."

2. What are the main eligibility requirements?  

Jonas: "There are a few important conditions. First, the property must be your own and only family home. This means you cannot own any other property, not even abroad, nor can you own a share in an undivided property. Second, you must live there yourself. Unlike with the reduced rate for registration fees, it is not enough to establish your domicile here for just a few days. The third condition stipulates that you must meet the first two conditions for a period of 5 years: it must therefore be your sole residence for 5 years, and you must continue to live there for 5 years. Fourth, the living area may not exceed 200 square meters. Areas such as a hallway and a storage room do not count toward this limit. Finally, you will need to sign an approved VAT declaration confirming that all conditions have been met. If you still wish to rent out the house or apartment, this is only possible if you make the property available to a social housing agency for at least 15 years." 

3. Am I not eligible if I already own a home?

Deborah: "Actually, yes! The requirement that the property be your sole residence must be assessed at the time of the first occupancy or the first use of the property. So you can still own another property that you live in yourself. However, this property must be sold no later than December 31 of the year following the year of the first use or first taking possession of the new, rebuilt home."

4. How quickly do I need to act to still take advantage of this program?

Jonas: "Time is running out! This is a transitional measure that remains in effect through December 31, 2024. This means you need to act quickly to get everything finalized in time. It’s the date the deed is signed that counts. It’s best not to wait until December to buy something. Often, it takes at least a month before you can sign the deed at the notary’s office."

5. Where can I go for more information and guidance?

Deborah: "With us, of course! Our team is here to guide you through every step of the process. We’ll help you with the paperwork, planning, and ensuring you meet all the requirements. Make an appointment with one of our specialists today and don’t miss out on this unique opportunity!"

DID YOU KNOW THAT … 

There are several projects that qualify for the reduced VAT rate of 6% (instead of 21%). To make things even easier for you, we’ve listed them all in a handy overview! 

⭢ View all new construction projects subject to 6% VAT here

The clock is ticking, and the 6% VAT scheme for demolition and reconstruction is set to expire soon. This is your chance to save significantly on your construction project. Do you have any questions, or would you like to get started right away? Contact our new construction specialists, Deborah or Jonas, and find out how you can still take advantage of this scheme. Don’t miss this unique opportunity—take the first step toward your dream home today!