Demolition And Reconstruction At 6% VAT: The New Rules

On 18 July 2025, the Belgian Parliament adopted new rules relating to the permanent 6% reduced VAT rate for the demolition and reconstruction of private residential buildings.

In addition to the possibility of benefiting from a 6% rate on construction works (input VAT), the program law introduces a flagship measure long requested by the real estate sector: a permanent 6% VAT regime on the sale of reconstructed buildings (output VAT).

This is a major boost for the real estate sector. Prior to this reform—and except for specific transitional measures under the temporary regime introduced in 2021 and ending on 30 June 2025—the sale of a reconstructed building would normally be subject to the standard 21% VAT rate.