- Belgium’s federal government has reached an agreement on the 2024 budget, which includes significant changes to the housing demolition and reconstruction schemes.
- The temporary measure allowing the sale of reconstructed homes at a reduced VAT rate will be removed, and the permanent system for applying the reduced rate in urban areas will be changed.
- Starting from January 1, 2024, developers selling properties under a demolition-reconstruction project will no longer benefit from the reduced VAT rate. However, the existing scheme for demolition and reconstruction in central cities will be extended nationwide, incorporating the social conditions applied in these cities.
- The reduced VAT rate will only apply to property sales throughout Belgium if certain conditions are met, such as the property being the owner’s sole residence and not exceeding 200 square meters in size. The new scheme will mainly apply to private owners who have demolished and rebuilt their sole residence.
- Transitional arrangements have been proposed to allow for the continuation of the temporary scheme for homes with relevant permits applied for before June 30, 2023, and the permanent scheme for work on immovable property with permits applied for before December 31, 2023.
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Source Deloitte
