New VAT rules for demolition and reconstruction effective July 1, 2025

The new regulation on demolition and reconstruction was published in the Belgian Official Gazette on July 29, 2025. It makes the reduced VAT rate of 6% permanent and introduces several relaxations and allowances.

Here are the key points:

6% VAT is now a permanent measure

From now on, the 6% rate can no longer be applied only to:

• buyers who plan to live there themselves,

• whether it's social housing,
  , or regular private rentals.

However, the technical requirements (such as demolition, reconstruction, and project unity) remain the same.

Implementation may be possible as early as July 1, 2025

Although the regulation did not officially take effect until July 29, it may be applied retroactively as of July 1, 2025.
Condition: the mandatory declaration via MyMinfin must still be submitted at a later date once the form becomes available, and the deed or agreement must include a specific statement.

Relaxation of the “sole residence” rule

From now on, the " single-home " criterion will be assessed individually for each buyer.
For example, married couples or cohabiting partners may still be eligible for part of the 6% rate, even if one partner owns another home.

A new form will be introduced for this purpose (111/3 – July 1, 2025).

Temporary tolerance

Since the MyMinfin forms are not yet available, you may apply the 6% rate until December 31, 2025, without submitting the declaration.
The declaration must then be submitted by January 31, 2026, at the latest.

New limit: maximum 175 m²

The maximum living area is being reduced from 200 m² to 175 m².
For homes between 175 and 200 m² that were still subject to the old rules, this may result in a VAT adjustment if the property is occupied after June 30, 2025.

In summary

The new regulation finally provides clarity and makes the 6% rate permanent, but it also requires extra attention to ensure the correct documentation and compliance with the new area limit.