Federal budget – The Real Estate sector is celebrating a “VAT revolution”
Sunday, 25 March 2018
The bill that will introduce VAT for professional real estate rentals is a “revolutionary decision”, the Professional Union for the Real Estate sector (UPSI-BVS) said on Saturday. The bill was approved by the Federal government as part of the budget checks. The organisation, which represents the Belgian real estate sector, says this bill should encourage foreign investors to invest in Belgium again.
The UPSI-BVS also pointed out that the introduction of VAT for professional rentals was included in the government’s summer agreement and then removed. “Our country was a lot less attractive to foreign investors because of this”, the organisation says.
The bill approved by the government on Saturday should allow real estate promotors to recuperate the VAT on construction costs for a new building or heavy renovation work if the renter is subject to VAT. “This will mean a massive saving, for renters as well”, UPSI-BVS explained. “The reform will also make us more competitive compared to neighbouring countries and attract new investors.”
Olivier Carette, the delegate administrator for the UPSI-BVS, says this reform is a “VAT revolution for the real estate sector. This bill will attract real estate investors and encourage them to invest in Belgium again. This will also encourage a surge in the renovation of older buildings.”