VAT on new construction

Construction VAT applies at 21% to the purchase of a new building sold with VAT (no later than 31 December of the second year after its first occupation) and to new construction work. For the renovation of a private home over 10 years old, a reduced 6% rate applies to labour and the materials installed by the contractor. Demolishing and rebuilding a home can also qualify for 6% anywhere in Belgium, under conditions: for an individual building for themselves, it must be their sole own home, with at most 200 m² of living space, where they stay registered for at least 5 years. Since 1 July 2025, the reduced rate also applies, under conditions, to the sale of rebuilt homes. When buying a new property with VAT, registration duty is only due on the land. VAT is deductible for a property used for a VAT-liable business activity.