- The ‘permanent’ scheme for demolition and reconstruction began on January 1, 2024, and expanded on June 1, 2024, to include homes intended for long-term rental, which also relaxed the social rental measure.
- The circular clarifies that the rental destination is no longer a restrictive condition for social policy; a house is considered socially rented if leased through recognized social rental agencies or entities with a social character.
- Direct social rental advantages remain limited, primarily in terms of property size criteria and continuity of social rental contracts upon sale, but it is expected to be less applicable with the new long-term rental measure.
- The new long-term rental measure requires a minimum rental period of 15 years, evidenced by registered rental agreements, but cannot be applied to homes initially built for sale that are later designated for rental.
- The circular also provides clarity on transitional measures linked to environmental permits, specifying that adjustments for apartment mergers or divisions must consider the submission date of the amended permit, potentially impacting VAT rates for the new configurations.
Source
- Tiberghien
- Circular 2024/C/73 on the reduced VAT rate for the demolition and reconstruction of dwellings throughout the Belgian territory as from 01.06.2024
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