If you buy a new home from a property developer, you will have to pay 21% VAT. A private individual may also decide to apply VAT when selling a new home. He or she will inform you of this and must specify it in the first written agreement (e.g. the preliminary sales agreement).

A home is new up to 31 December of the second year following the year in which it entered use or was inhabited for the first time.

Example: a home that entered use for the first time in 2022 is new until 31 December 2024.

In principle, the applicable rate of VAT is 21%. However, if you buy a new social home, you will pay 12% VAT on it if you buy it from a Public Centre for Social Welfare (OCMW/CPAS); 6% VAT is payable if you buy it from a regional housing company or a social housing company recognised by the former.

You do not need to take any action yourself. The seller will take care of all the VAT-related formalities. In the deed of sale he or she will indicate the VAT office with which he or she will file a special 104.5 VAT return, as well as the year in which the building was first subject to property tax.

As far as the land accompanying a new home is concerned, in principle VAT is also payable at a rate of 21%.

This is subject to the following three cumulative conditions:

• Permission was granted to build on the land, and the building that has been erected is being sold subject to VAT
• The land and building are being sold by the same person
• The land is being transferred together with the building

If these three conditions are not fulfilled simultaneously, you will pay registration fees on the purchase of the land. These amount to 12% of the purchase price if you are purchasing land in the Flemish Region and 12.5% in the case of the Walloon or Brussels Capital Region.