“6% VAT on new construction is a fiscal game-changer.”
– Karel Burrick
The federal government has recently implemented an important tax reform that offers a unique opportunity for real estate investors.
Starting July 1, 2025, the reduced 6% VAT rate on new construction after demolition and reconstruction will no longer apply exclusively to owner-occupied homes, but also to properties rented out on the private rental market.
At Avenue, we see this reform as a real lever for investors seeking to combine targeted returns with a future-proof real estate portfolio.
What does the new arrangement entail?
Until now, the 6% VAT rate was effectively only feasible for those who lived in the property themselves or through complex structures, such as rental via social rental agencies. With the new arrangement, private investors can now build at 6% VAT and then rent to a private tenant, without additional detours or fiscal structures.
“No fiscal tricks, but a real opportunity for those who are well-informed.”
– Karel Burrick
Key conditions
- The habitable area of the home may not exceed 175 m².
- The tenant must establish their domicile in the property.
- There is a 15-year rental obligation; if terminated early, part of the VAT may be reclaimed.
These are clear rules, which we thoroughly analyze with our clients to maximize the fiscal advantage.
Why is this relevant for investors?
The reduced VAT rate of 6% instead of 21% creates a direct benefit of 15% on the purchase price. This difference not only increases returns but also lowers the entry threshold for quality real estate investments.
“Timing is everything in real estate. This is the right moment to anticipate this reform.”
– Karel Burrick
It is expected that developers will adjust their prices in later launches, meaning the advantage can currently be utilized to the fullest.
How does Avenue guide its investors?
We anticipate the legal change and have already mapped out projects that qualify under the new arrangement. Thanks to our direct contacts with developers, we can immediately guide interested investors to concrete projects under this new regime.
- At Avenue, we guide investors with a personal, well-founded approach based on:
- Transparency and clear communication, without unnecessary complexity.
- Thorough screening of projects on location, target audience, and return potential.
- Concrete guidance from first advice through purchase and follow-up.
Get ahead today
Avenue will guide you today toward projects that fall under the new arrangement. Expect no miracles, but real returns, simplicity, and a team that knows what it’s doing.
Interested in exploring options for your investment portfolio? Schedule a non-binding consultation via avenue.eu/contact or email us at info@avenue.eu. We will gladly take the time to discuss this new opportunity and explore how it can fit into your long-term strategy.