Buy new builds now at 6% VAT

BENEFIT FROM THE TEMPORARY REDUCED VAT RATE FOR DEMOLITION AND RECONSTRUCTION UNTIL 31 DECEMBER 2022.
... May 15, 2021 / Living

Since 1 January 2021, a reduced VAT rate of 6% applies temporarily throughout Belgium for all new-build houses and new-build flats where an old building is demolished for the purpose of building the house.

And that is good news, because many projects in the Dyls portfolio meet the conditions for this regulation. This means that when you buy a new house or flat during the period of validity (1/1/2021-31/12/2022) you save up to 15% VAT – even if the project itself was started before 1 January 2021. Too good to be true? No, it is not. We will gladly explain how you can benefit from it.

THE CONDITIONS

To benefit from the reduced VAT rate of 6%, both the property and you, the buyer, must meet a number of conditions.

 

  1. The new home must replace a demolished building on the same building plot.
  2. The property must be your own family home: you, as the buyer, must be an effective domicile and the property must be used primarily for private purposes.
  3. As a purchaser, you may not own any other property.
  4. The home purchased must remain your only and personal home for five years.
  5. The property must be purchased as a natural person and not as a company.
  6. The habitable surface of the home may not exceed 200 m2.

 

HOW MUCH CAN YOU SAVE ON YOUR PURCHASE?

How much you can save exactly on the purchase of your new home depends on a number of factors: including the total purchase price of the home and the number of invoices you receive during the period of validity of the measure. Below, we have already worked out an example of a €345,000 property where all payments fall within the period of validity of the measure. In this case, the reduced VAT rate can save the buyer as much as EUR 42,000.

 

Situation before the new VAT measure Situation during the new VAT measure
Land share € 58.500 Land share € 58.500
10% registration on the land share € 5.850 10% registration on the land share € 5.850
Construction € 286.500 Construction € 286.500
21% VAT on the construction € 60.165 6% VAT on the construction € 17.190
Total € 411.015 Totaal € 368.040

 

PURCHASES AT 6% WITH DYLS: HOW DOES THAT WORK?

At Dyls, we develop new construction projects that not only offer added value for you as a buyer, but also for the neighbourhoods and communities in which they are integrated. This is why it often happens that old buildings are demolished for our projects to make way for a new neighbourhood plan that better meets the needs of the residents.

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