6% VAT on Demolition and Reconstruction Now Official: Good News for Buyers and Investors
In April, the federal government announced via the Easter Agreement that the popular 6% VAT rate for demolition and reconstruction projects would become a permanent part of Belgian legislation. It is now official: the measure was published in the Belgian Official Gazette on 29 July 2025 and applies retroactively from 1 July 2025.
This marks a major step forward: greater legal certainty, more clarity, and a significant fiscal benefit for both private buyers and investors.
What does this mean for you as a private buyer?
If you purchase a new-build apartment from a developer (such as Fenixco) in a project where an old building was demolished and replaced with a new construction, you may qualify for the reduced VAT rate of 6% on the construction, instead of the standard 21%. The conditions are:
• You are a natural person (not a company);
• The apartment will be your only and primary residence;
• You establish your official domicile in the property without delay;
• The habitable surface area does not exceed 175 m²;
• You meet the conditions for at least five years after taking possession.
And what about investors?
Investors may also qualify for the 6% VAT rate, provided that:
• The property is rented out for at least 15 years to a private individual;
• The rental is either on the private market (with official domicile) or via a social rental agency (SRA) or recognized social housing organization;
• The habitable surface area does not exceed 175 m²;
• The urban planning permit was issued after 1 July 2023;
• A declaration is submitted in due time to the Federal Public Service Finance, before VAT becomes due.
Why this matters for Fenixco buyers
Fenixco specializes in urban redevelopment through demolition and reconstruction, often transforming outdated buildings into sustainable, timeless architecture.
When both the project and the buyer meet the 6% VAT conditions, we can offer our clients — whether they plan to live in the property or invest in it — a concrete financial advantage, all within a clear and stable legal framework.
We guide you from A to Z in assessing whether your purchase qualifies and in completing the necessary administrative steps.
Interested in buying a new-build at 6% VAT?
Explore our current projects, or get in touch with us for a personal eligibility check — no strings attached.
