The standard VAT rate is 21%, but in certain cases a purchase may qualify for the reduced VAT rate of 6%. On a construction value of, for example, €300,000, that difference can amount to tens of thousands of euros. It is therefore important to know when you pay 21% VAT and when 6% VAT may apply.
When buying a new-build home, you generally do not pay registration duties on the building, but VAT. For new-build properties, the standard VAT rate is 21%. The land may also be subject to VAT. This is the case when the land and the building are sold together by the same seller, when the building is sold with VAT, and when the land is transferred at the same time as the building. If the land and construction are sold separately, you generally pay registration duties on the land and VAT on the construction. This distinction can have a significant impact on the total purchase cost.
For new-build properties, the standard rate of 21% VAT applies in principle. This is the general rule for new houses and apartments. So, if you buy a classic new-build home on an undeveloped plot, or a new-build apartment from a developer, you will normally pay 21% VAT, unless both the project and your personal situation meet the conditions for a specific exception.
The reduced VAT rate of 6% does not apply to every new-build property. It is linked to demolition and reconstruction: an existing building is demolished and a new home is built on the same site. Since 1 July 2025, a new permanent scheme for demolition and reconstruction has applied throughout Belgium. Important for buyers: since then, the 6% VAT rate can also apply to the sale of a reconstructed home by a developer or seller, provided that both the project and the buyer meet the legal conditions.
If you buy a house or apartment in a demolition and reconstruction project, you may qualify for 6% VAT under certain conditions.
In that case, you must be a private individual. In other words, you buy privately, not through a company. The property must become your only and own home. You must register your domicile there without delay and use the property mainly yourself. The habitable surface area may not exceed 175 m². Do you currently still own another family home? That does not always have to be a problem. In certain cases, the 6% VAT rate may still apply, for example if you sell your current home in time. Since 1 July 2025, the “only home” condition is also assessed per buyer individually. As a result, in some situations one buyer may qualify for 6% VAT, while another buyer pays 21% VAT on their share. The conditions must be maintained for five years. If you sell the property earlier or no longer meet the conditions, part of the VAT benefit may be reclaimed.
Investors can also benefit from the 6% VAT rate in certain cases. If you buy a reconstructed home to rent it out long-term on the private rental market, this may qualify for 6% VAT under certain conditions. The buyer may be either a private individual or a legal entity. The property must be rented out for at least 15 years to a private individual who registers their domicile there without delay. For this type of private rental, a maximum habitable surface area of 175 m² applies when purchasing from a developer. The 6% VAT rate may also apply to long-term social rental. In that case, the property must be socially rented out or managed through the recognised channels for at least 15 years. For this category, the Belgian Federal Public Service Finance does not mention any surface area condition. If the rental conditions are not respected for the full period, a proportional part of the VAT benefit may be reclaimed.
It is not only the buyer who must meet the conditions; the project itself must also qualify. It must be a genuine demolition and reconstruction project. The seller or builder must be responsible for both the demolition and the reconstruction.
When buying a new-build home, 21% VAT is the rule. The reduced rate of 6% VAT is an exception and mainly applies to demolition and reconstruction projects. Since 1 July 2025, 6% VAT can also apply to the sale of reconstructed homes by a developer. For buyers who will live in the property themselves, the conditions include the only-and-own-home requirement, domicile registration, a maximum habitable surface area of 175 m², and a five-year retention period. For investors, specific rental conditions apply for a period of fifteen years. Are you unsure whether one of our homes or projects qualifies for the reduced VAT rate? Albert Immo will be happy to review your situation with you and guide you through the rules. Contact us for advice or an appointment.