These rules have been in force since 29 July 2025, with a transitional tolerance allowing sales completed as of 1 July 2025 to also benefit from the reduced rate.
Below, we outline the different scenarios under the new rules, with special attention to projects that were already underway as of 1st July 2025.
Overview
In summary, the regime provides for the following scenarios:
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Input (works) – 6% VAT on demolition and reconstruction works |
Output (sales) – 6% VAT on the sale of reconstructed dwellings |
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Reconstruction by an individual for his own and sole residence |
Sale of a reconstructed dwelling purchased for one of the three eligible purposes |
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Reconstruction for social housing rental |
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Reconstruction for private long-term residential rental |
6% VAT on demolition and reconstruction works
6% VAT on the sale of reconstructed dwellings
Contact
If you have any questions about this topic or other real estate matters, please feel free to contact our real estate team.