Taxation
Published on 16 October 20266 min read
6% VAT on a new build in Belgium: who qualifies
The Immolytics editorial team
Belgium's 6% VAT rate on a new build exists, but it is an exception to the standard 21%. It applies only if you live in the home yourself as your sole and own home, and only if you meet the conditions set by the federal tax administration. Build to let, or as a second home, and 21% remains the rule.
When does the 6% rate apply to a new build?
The 6% rate applies when a private individual builds, or has built, a home that they occupy as their sole and own home, and when all the conditions are met. If you do not live there yourself, or you let the property, the contractor will normally invoice 21%.
VAT is a federal matter in Belgium. The rate and the conditions are therefore the same in Flanders, Wallonia and Brussels. That is not true of registration duties, grants or energy performance rules: those differ by region and sometimes by municipality. To estimate the total cost, put both alongside each other instead of looking at the VAT rate alone.
The 6% covers the construction of the dwelling itself. On the land you pay no VAT but registration duties. Use the notary fee calculator and compare the result with the VAT on the works, so you can see which part of your budget each rate decides.
Buy a new-build home from a professional seller and the ordinary 21% rate is what is applied in practice. The reduced rate mostly comes into play when you are the client commissioning works on your own land.
Who qualifies for the reduced rate?
Only a private individual who occupies the home as their sole and own home qualifies for 6%. A company, a landlord, or the buyer of a second home falls back on 21%.
The tax administration looks at how the dwelling is used, not at the name on the invoice. It wants to know whether this is your only home, whether you live in it yourself and whether you keep living in it for the period it sets. Those conditions continue to apply after completion, not only during the works. Change the use of the property in the meantime and you lose the reduced rate.
Ask the Federal Public Service Finance to confirm your undertaking in writing before you let the works start. Do not apply the reduced rate on the basis of a verbal statement from a contractor or an estate agent. A wrong rate on the first invoice usually carries through to every invoice after it.
Demolition and rebuild: a separate scheme
For demolition followed by rebuilding, a reduced 6% rate also exists, but it works differently from the ordinary own-home scheme. In certain urban areas designated by the administration, the scheme is permanent; outside those areas it depends on the period and on the conditions in force at that moment.
Because those conditions can change, have the rate confirmed in writing before the contractor starts. Also check whether the demolition invoice itself falls under the same rate, because that varies from one situation to another.
With demolition and rebuild, the value of what is already standing matters. Have the land and the building to be demolished valued separately: a valuation report gives you a supported figure you can discuss with your bank and with the administration. That figure is also useful when you compare the total cost of your project with what a similar home is worth in your municipality.
Which certificates and formalities does the administration require?
You give the contractor a certificate showing that the dwelling is your sole and own home. With that certificate the contractor applies the 6% rate. Without it, 21% is invoiced, even if you are proved right later.
The model of that certificate is set by the federal administration. Request the document in time and keep a copy with your invoices. A contractor may not apply the reduced rate on the basis of an ordinary email or a phone call. If you are unsure about the correct term, the glossary helps you put your question correctly to the administration or to your accountant.
Keep invoices, plans and certificates together in one file. In an audit, a complete file is the difference between a short question and a long argument. Note on each invoice which rate was applied and to which part of the works.
What falls under 6% and what does not?
The 6% applies to the works and materials the contractor invoices for the home you occupy yourself. For a second home, for a property you let, or for works unrelated to that home, 21% continues to apply.
The land follows a different track: no VAT, but registration duties. That is a regional competence, so the rates and the reductions differ between Flanders, Wallonia and Brussels. Never include the land in the VAT on the build, and do not compare the regional rules as if they were the same.
Notary or architect fees, and the costs of a contractor working outside the dwelling, follow their own rules. Split those items in the quote so you can see which part falls under which rate. If in doubt, ask for a separate invoice line rather than one total amount.
How the total cost of your build becomes visible
VAT is one line in the total cost. Alongside 6% or 21% on the works come registration duties on the land, professional fees and financing. Put those items next to each other before you choose a contractor, because the rate on its own says nothing about what you end up paying.
On financing you will find information here only: which formulas exist, what costs they carry and how a bank looks at your borrowing capacity. This site does not sell credit and is not a credit intermediary, so you will read no offer and no rate advertising. The explanation of mortgage rates helps you ask your bank the right questions.
Want to know what a similar home is worth in your municipality? The valuation gives a figure based on official price data. The price map shows the differences between municipalities, the page on property prices goes deeper into the figures, and on top and in the barometer you follow the official Statbel and notary figures with their date. All the calculators sit together on tools. To sell your current home, you will find estate agencies near you.
Frequently asked questions
Does the 6% rate apply to everyone?
No, the reduced rate applies only if the home is your sole and own home and all the conditions are met. For letting or for a second home, 21% remains the rate.
Do I have to give the contractor a certificate?
Yes, the contractor can apply the reduced rate only if you give them the certificate prescribed by the federal administration. Without that certificate, 21% is invoiced.
Does the scheme differ from region to region?
VAT is a federal matter, so the rate and the conditions are the same in Flanders, Wallonia and Brussels. Regional differences lie mainly in registration duties, grants and energy performance rules.
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