The construction and real estate sectors are urging the government to lower VAT on new housing in an effort to revive the market and ease pressure on rental housing.
According to four associations—Embuild, Bouwunie, UPSI, and CIB—more than half the purchase price of a newly built property currently goes to public authorities through VAT, registration fees, and other taxes. For a new property priced at €350,000, VAT alone amounts to nearly €59,000, they stated in a press release issued Saturday.
This financial burden, they argue, is preventing many families from pursuing property ownership. As a result, more people are likely to turn to the rental market, which only accounts for 26% of available housing in Belgium.
The number of building permits issued is now at its lowest level since 1998, with construction declining steadily since 2022. The associations warn that a prolonged structural shortage will exacerbate the imbalance between supply and demand, further intensifying the housing crisis. Meanwhile, reduced production capacity is making the crisis’ resolution increasingly difficult.
The construction and property development sectors argue that reducing VAT is the only federal measure that could quickly make new housing more affordable and help address the growing housing shortage.
