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11.03.19 New Flemish Decree stimulates the demolition and rebuilding of residences through the introduction of a Flemish demolition and rebuilding grant

Real estate
March 11
  • Thirteen Flemish cities have adopted a fiscal incentive for people wishing to proceed with the demolition and rebuilding of residences, namely the lowered VAT rate of 6%. This incentive has been introduced in the Flemish cities of Antwerp, Ghent, Ostend, Mechelen, Sint-Niklaas, Leuven, Bruges, Kortrijk, Roeselare, Aalst, Dendermonde, Genk and Hasselt.
  • The Decree by the Flemish government dated 1 February 2019 amending the Energy decree dated 19 November 2010, concerned the introduction of a demolition and rebuilding grant providing for a compensatory reimbursement to owners whose property is located outside these cities and this with retrospective effect for permits applied for as of 1 October 2018;
  • Individuals can apply for a grant when demolishing a building located in the Flemish region while rebuilding a residence or apartment building afterwards. Rebuilding has to be coupled with a demolition, meaning that both buildings have to be located on the same property.
  • Each project is entitled to one fixed grant amounting to EUR 7,500.00
  • The grant is only accorded if (i) the application for an environmental permit contains the aspect regarding the demolition of a building combined with the aspect regarding the rebuilding of a residence or apartment building (the so-called combined application), (ii) the application was submitted between 1 October 2018 and 31 October 2019 (incl.), (iii) the site, the building to be demolished and the apartment building or residence to be constructed are in full ownership of one or more natural persons and (iv) the grant was applied for not more than one month following the application for an environmental permit. If the application was submitted before 1 March 2019, the applicant
  • has 60 days starting on 1 March 2019 to apply for a grant, thus by 30 April 2019at the latest;
  • Furthermore, the grant is temporarily accorded for separate applications, if (i) the permit for the demolition was applied for between 1 October 2018 and 28 February 2019 and (ii) the permit for the rebuilding was applied for between 1 October 2018 and 31 March 2019. The grant is to be applied for on 30 April 2019 at the latest.
  • The Flemish Energy Agency (Vlaams Energieagentschap(VEA) can reclaim the grant in certain cases, e.g. if ownership of the site or the building is transferred to or burdened with a real right to the benefit of a legal person.
  • The grant can be applied for since 7 March through a web application of the VEA at Energiesparen.be/slooppremie and will be paid out within a period of three months following the provision of proof indicating the end of the demolition works. This proof can be provided by means of an invoice issued by the contractor or demolition company which carried out the demolition works or, if you carried out the works yourself, by means of pictures depicting the demolition works (before and after). 

The Real Estate Team 

Wouter Neven • +32 2 787 90 82 • wouter.neven@lydian.be