Three distinct regimes
| Regime | Rate | Object |
|---|---|---|
| New build | 21 % | new building on bare land |
| Refurbishment | 6 % under conditions | altering, improving or repairing an existing building |
| Demolition and rebuild | 6 % under conditions | autonomous regime, own conditions |
These three regimes do not overlap and cannot be inferred from one another. Demolition and rebuild in particular follows its own conditions, forms and thresholds, and is prepared with an accountant.
The cumulative conditions of the reduced rate on refurbishment
All must be met simultaneously. A single one missing tips the whole to the standard rate.
Age. The dwelling must be more than ten years old. The reference date is that of first occupation, not of acquisition or of the works.
Use. The property must be used as private housing. Mixed use remains possible under conditions.
The contractor. Works must be carried out by a VAT-registered contractor.
Invoicing. The invoice must be addressed directly to the final consumer. Tenant, usufructuary or owner may each be that final consumer.
The statement on the invoice. Since 1 July 2022 a statement on the invoice has replaced the separate certificate. It binds the client.
What remains at the standard rate
Three families escape the reduced rate even on a qualifying project. They are therefore invoiced at the standard rate and costed separately.
Intellectual services. Architect, engineer and surveyor invoice at the standard rate, systematically, even where their work prepares works at the reduced rate. This is the costliest and least anticipated exclusion.
External works unconnected to the dwelling. Landscaping, swimming pools, saunas and external works fall under the standard rate.
Non-fixed elements. Appliances not incorporated into the building do not qualify for the reduced rate.
Two recent changes on equipment
The treatment of heating equipment has moved, in two opposite directions. The changes are checked on the federal finance portal before quoting.
Since 1 July 2025, gas and oil boilers fall under the standard rate, including in a dwelling more than ten years old.
Since 1 January 2026, heat pumps qualify for the reduced rate even in a dwelling less than ten years old, under a measure announced as temporary.
These two changes turn a technical decision into a fiscal one. The difference in treatment between two heating systems now sits on top of the difference in installation and running cost.
The five costliest pitfalls
Buying materials yourself. A tile bought in a shop bears the standard rate, whereas the same tile supplied and laid by the contractor falls under the reduced rate throughout. Letting the contractor supply can represent a substantial saving.
Getting the age wrong. The date that counts is first occupation, verifiable, not an estimate. On inspection the client bears the difference and interest.
Making the building fiscally new. Works modifying the loadbearing structure and replacing a majority of the floors may cause the operation to be reclassified as new build. The decision is discussed with the architect beforehand.
Omitting the statement on the invoice. Works completed and invoiced at the reduced rate without a regularised statement: the exposure is real.
Confusing refurbishment with demolition and rebuild. Two autonomous regimes, two sets of conditions, two procedures.
What the reduced rate combines with
A favourable and often overlooked point.
The reduced rate can be combined with regional refurbishment support schemes. Both advantages apply simultaneously, and their combination can cover an important share of cost on energy works.
Regional schemes change quickly and are covered in the branch on regional cost. The three regions are compared there on the same criteria.
What this means for an estimate
Four rules.
Determine the regime before pricing, because it changes the budget by fifteen per cent.
Apply two distinct rates within one funding plan, one to the works, the other to fees.
Check the date of first occupation beforehand, rather than relying on an estimate.
Have the arrangement secured by an accountant as soon as the operation goes beyond simple refurbishment.
This article reflects tax rules at the date of checking and serves professional orientation. It does not constitute tax advice and does not replace assessment of the individual case.