Belgium Implements Permanent 6% VAT on Newly Reconstructed Buildings for Residential Rental Use

A permanent 6% VAT rate applies to newly reconstructed buildings for residential rental purposes in Belgium from 1 July 2025
The Program Law of 18 July 2025 expands the scope of the 6% VAT rate, affecting demolition-reconstruction works and other areas
Conditions for the reduced rate include selling to private individuals or legal persons for personal residence or long-term rental
Specific conditions apply to habitable surface area and rental duration
A joint electronic declaration with supporting documents is required
The change allows real estate investors to benefit from the reduced VAT rate
The policy change will significantly impact investments by reducing VAT from 21% to 6%
Developers and constructors should reassess projects based on new eligibility and surface area criteria

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.