Belgium Introduces Permanent 6% VAT for Reconstructed Residential Rental Buildings from July 2025

• Belgium will implement a permanent 6% VAT on newly reconstructed buildings for residential rental use starting 1 July 2025.
• This change reduces the VAT from the standard 21% to 6% for qualifying projects.
• The policy aims to encourage housing development and make residential rental investments more attractive.
• Strict eligibility requirements must be met to benefit from the reduced rate.
• The property must be intended for residential use, specifically for personal residence or long-term rental.
• The reduced VAT applies to sales to private individuals or legal persons for residence or long-term rental.
• Specific conditions apply to the size of the habitable surface area.
• Long-term rental commitments are required; short-term rentals do not qualify.
• Compliance requires a joint electronic declaration and supporting documents.
• The VAT reduction could transform investment strategies by lowering acquisition costs and improving profitability.

Source: vatit.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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