- Belgian government extends 6% VAT rate on demolition and reconstruction work to rental properties
- Aimed at stimulating production of affordable housing
- Significant impact on current and future investments
- Reduction in VAT could result in significant savings for larger infrastructure projects
- Previous restriction of reduced VAT rate for real estate investors and developers lifted
- Conditions for reduced rate include property being rented as main residence, surface area not exceeding 200 square meters, and property being let for at least 15 years
- Decision expected to stimulate production of affordable housing and modernize housing stock
- Ministry of Finance estimates cost of measure at around EUR 8 million
- Change in policy could have significant impact on investments, reducing VAT from 21% to 6%
Source: insightplus.bakermckenzie.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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