From a real estate VAT perspective, the key measure concerns the sale of new residential buildings at the reduced 6% VAT rate.
- The reduced rate will (once again) apply to the supply of residential buildings resulting from a demolition followed by reconstruction. As a reminder, this reduced rate already applied under a temporary regime that ended on 31 December 2023, although its effects were extended for ongoing projects until 30 June 2025.
- The new regime is intended to be permanent. Note, however, that some of the conditions for its application differ slightly from those of the previous regime.
Entry into force? Good news — the tax authorities have confirmed they will accept a “proactive” application of the Programme Law. This means the 6% VAT rate can be applied as of 1 July 2025.
An administrative comment on the new regime is expected soon.
Are you working on a real estate project or planning one? Want to check which VAT regime applies? Contact our tax team!
