Regime as from 1 July 2025

A new permanent demolition and reconstruction regime will apply as from 1 July 2025.

What does the new demolition and reconstruction regime entail?

As from 1 July 2025, a new permanent demolition and reconstruction regime will apply, consisting of four different measures:

The demolition of a building and reconstruction of a dwelling by a builder who is a natural person and who will personally occupy the new dwelling: in this case, social criteria apply relating to surface area (living area of no more than 200 m²), owner-occupied dwelling, sole residence and domicile condition (to be met for at least 5 years). This measure will apply unchanged as from 1 January 2024.
The demolition of a building and the reconstruction of a dwelling by a builder who is a legal entity or a natural person who will let the new dwelling to a social rental agency for at least 15 years within the framework of social policy, or to a social housing company authorised by the competent authority on social housing policy, or another public or private legal entity with social purpose, or who has it let by one of the aforementioned parties under a management mandate granted to them (not subject to a living area condition). This measure has been in place since 1 January 2024. However, its scope was amended with effect from 1 June 2024 and remains unchanged.
The demolition of a building and the reconstruction of a dwelling by a builder who is a legal person or a natural person who will let the new dwelling directly for at least 15 years to a natural person who will take up residence there without delay, and the dwelling having a living area of no more than 200 m². This measure has been in effect without change since 1 June 2024.
New measure as from 1 July 2025: the delivery of a dwelling after demolition and reconstruction by a supplier who is a legal entity or a natural person who will sell the re-established dwelling:
- either to a natural person who will personally occupy the new dwelling: in this case, social criteria apply relating to surface area (living area of no more than 175 m²), owner-occupied dwelling, sole residence and domicile,
- or to a natural person or legal entity who will let the new dwelling on a long-term basis (at least 15 years) for social purposes (not subject to a living area condition),
- or to a natural person or legal entity who will let the new dwelling privately on a long-term basis (at least 15 years) to a natural person who will take up residence there without delay, and the dwelling having a living area of no more than 175 m².

This regime applies to the entire Belgian territory.

The transitional measures applicable before 1 July 2025 have expired on 30 June 2025.

More information:

Are there any key areas of concern?

When several people buy or reconstruct a dwelling together, the specific social conditions of the first three measures remain unchanged, except for the assessment of the 'sole residence' criterion and so-called 'impeding posession'. That assessment will be conducted differently for the first occupation or first taking possession of the re-established dwelling as from 1 July 2025.
The new fourth measure refers to the delivery of the re-established dwelling that will be used by the buyer for one of three specific purposes (see above).
An additional exclusion from the application of the reduced VAT rate in respect of the components or part of the components of the specific part of a central heating installation running on fossil fuels, including the burners and the control and monitoring devices connected to the boiler, is provided for.

Where can I find more information on this and previous regimes?

In the circulars 2025/C/44 on administrative tolerance for VAT levied on supplies under the regime on demolition and reconstruction of dwellings from 01.07.2025 and 2025/C/48 on the new regime on the 6 % VAT rate for the demolition and reconstruction of dwellings, you will find the explanations of the new regime (in French or Dutch).
These previous regimes have been explained (in French or Dutch) in:

Do the general conditions continue to apply to the new regime?

Yes, see point 3.2. of Circular 2024/C/73.

How will the assessment of the 'only dwelling' criterion and so-called 'impeding posession' change as from 1 July 2025, in case several people buy or reconstruct a dwelling together?

From now on, the 'sole residence' criterion will be assessed on the part of each individual builder or buyer only in cases in which the builder or the buyer will personally occupy the re-established dwelling.

Therefore, a married or legally cohabiting couple (in the capacity of builders or buyers) who acquire property rights together in respect of the re-established dwelling is in that case no longer considered as one entity for the purpose of assessing whether or not the reduced VAT rate applies.

Depending on the personal situation of each of those persons, a distinction may have to be made when billing for services or deliveries of goods to those persons.

If the separate assessment on the part of each builder or buyer results in the need to break down the tax base of the construction work or of the delivery for the purposes of applying the VAT rate, such breakdown shall be made in proportion to the ownership rights of the builders (specifying their ownership shares in statement No 111/1-1 July 2025 is sufficient for this purpose) or buyers (their ownership shares are included in the deed of sale of the reconstructed dwelling and in statement No 111/3-1 July 2025) in the reconstructed dwelling.

The evaluation of the ‘sole residence’ criterion is made at the time of the first occupation or first taking possession of the re-established dwelling. The new interpretation applies to re-established dwellings whose first occupation or first taking possession takes place after 30.06.2025.

Since this is a relaxation of the application of the criterion with regard to married couples or legal cohabitants and notwithstanding the principles regarding payability of the tax, it was decided that in this case, the reduced VAT rate may also be applied to the VAT that became payable before 01.07.2025 and to the extent that all other conditions are fulfilled. The fact that a statement has or has not been submitted previously is irrelevant.

Where applicable, the commissioning authorities – at least one of whom is in a situation of ‘impeding posession’ – must disclose their equity share in the re-established dwelling to the contractors in order to benefit from this concession. For buyers, this ownership share will be evident from the agreement or the authentic deed.

No additional concession will be provided in respect of files for which the time of first occupation or first taking possession took place before 01.07.2025.

Do I have to submit a statement as a builder or seller when I want to apply the new regime?

Yes, depending on the destination of the re-established dwelling, you should submit one of the following statements via MyMinfin :

No 111/1-1 July 2025 ⁽¹⁾
No 111/2-1 July 2025 ⁽¹⁾
No 111/3-1 July 2025 (together with the buyer,⁽²⁾)
No 111/5-1 July 2025⁽¹⁾

As it was impossible to submit declarations through MyMinfin at the time the regime came into force, a tolerance applied until 31 December 2025. During this period, the contractor or seller may apply the reduced rate if the following statements appear on the invoice and, in the case of supplies, in the sales agreement or authentic deed: ‘Application of the 6 % VAT rate for the demolition and reconstruction of a dwelling (section XXXVII, § X ^(*) of Table A of the Annex to Royal Decree No 20 of 20 July 1970 on VAT - permanent measure as from 1 July 2025)’ and ‘The statement referred to in the aforementioned section XXXVII, § X^(*) will be submitted as soon as possible and in any case no later than 31 January 2026 via MyMinfin’.

^(*)Depending on the situation: § 1, § 2, § 3, second paragraph, 1°, a), b) or c) or § 4.

The forms are now available in MyMinfin. It is therefore recommended not to use the tolerance and submit the statement immediately through the portal. In any case, by 31 January 2026 at the latest, builders and sellers should have taken the necessary steps to submit the missing statements relating to the operations for which this tolerance has been applied, via the MyMinfin application.

During that tolerance period, information on the ownership share of the builders/buyers of the re-established dwelling should be communicated to the contractor/seller either in a separate document or in the sales agreement and/or authentic deed.

A copy of this statement (acknowledgement of receipt from the FPS Finance as proof of submission of the statement is sufficient) should then be sent by the builder to the service provider(s) as soon as the statement has been submitted via MyMinfin.

Once the statement is submitted via MyMinfin, the seller will send the aforementioned copy to the buyer.

⁽¹⁾ If a project was already benefiting from the reduced VAT rate under a previous regime, it is not necessary to submit a new statement after 1 July 2025 in order to continue to benefit from the reduced VAT rate under the conditions set, unless there is a special circumstance relating to the ‘owner-occupied dwelling’ condition in the case of statement No 111/1-1 July 2025.

⁽²⁾ If a project was already benefiting from the reduced VAT rate under the transitional measure in the previous regime and therefore a statement 111/3 was already submitted, and, moreover, after 1 July 2025 at the time of first occupation or first taking possession of the re-established dwelling in the case of owner-occupation by the buyer, the maximum living area of 175 m² is also met, the reduced 6 % VAT rate may continue to be applied if a new joint statement (seller/purchaser) 111/3-1 July 2025 is submitted. The statement of the buyer, to be attached to that statement, should also be filled out and signed again, taking into account the changed surface area condition.
However, if a project was excluded from the reduced VAT rate under the transitional arrangement (supplies), a statement 111/3 should be submitted in any case. In that case, there is no need to amend the original agreement or authentic deed. It is sufficient to include the aforementioned specifications on the sales invoice.

Please note: If the total living area at the time of first occupation or first taking possession of the re-established dwelling after 1 July 2025 exceeds 175 m², the standard 21 % VAT rate will apply.

Should I take action if there is a change that causes the conditions to cease to be met during the five-year period (or 15-year period in the case of long-term social housing or housing that is privately let on a long-term basis)?

Yes, you should submit a statement to the FPS Finance within three months from the date the changes commence (depending on your situation through statement No 111/1B, 111/2B, 111/3B or 111/5B).
Within the same period, (part of) the tax benefit will have to be repaid.

Would you like a form? Please contact your competent office by phone: Office directory > ‘Particulier (Private individual)’ > ‘Déclaration (Declaration)’ > ‘Construction – déclaration TVA (Construction - VAT return)’ > ‘commune (municipality)’ where the immovable property is located. They will provide you with a form.