Demolition and reconstruction: 6% VAT benefit extended!
Extension of the 6% VAT rate for demolition and reconstruction through June 30, 2025! Take advantage of more time and savings on your energy-efficient new construction project.
Blame it on the rain! Heavy rainfall last year caused significant delays in construction projects. Fortunately, the government has some good news: the 6% VAT rate will be extended by six months, until June 30, 2025. That means extra time to finish your construction projects and save big. With this favorable rate, you can easily save tens of thousands of euros.
More breathing room, more possibilities. Curious to find out how you can benefit from this? Read on to discover which construction projects are eligible!
What does the extension entail?
The federal government has extended the transitional scheme for demolition and reconstruction at a reduced VAT rate of 6% by six months, until June 30, 2025. This scheme applies to projects for which an environmental permit was applied for before July 1, 2023.
Why is this important to you?
The standard VAT rate for projects 21%. Thanks to this extension, you’ll pay only 6% VAT on demolition and reconstruction, resulting in significant savings. This makes it more financially attractive to choose an energy-efficient new-build home as your new residence.
How do you qualify?
It's not rocket science, but there are a few rules to follow:
Timing is key: the environmental permit must be submitted by July 1, 2023.
Deadline: The project must be completed by June 30, 2025.
Your own home: You must live in the new home for at least five years.
Compact living: the home must not exceed 200 square meters.
No second home: You may not own another home unless you sell it.
Would you like to rent out the property? That’s also an option, as long as you commit to social housing for at least 15 years.
Why this extension?
Due to the heavy rainfall over the past year, many construction projects have been delayed. To give developers the opportunity to still benefit from the reduced VAT rate, the deadline has been extended. In addition, the construction sector is grappling with a rising number of bankruptcies. This measure provides some breathing room.
Which new construction projects are eligible?
Curious about the new-construction projects that qualify for this VAT benefit? Our new-construction specialists are here to guide you—whether you’re looking for a home for yourself or want to invest in a lucrative rental property. Contact our new-construction specialists and take the first step toward your dream home or investment with us.