The reduced rate of 6% was to apply to everyone!

As a result, current social conditions would be maintained, and the surface criterion would be tightened from 200m2 to 175m2 for delivery.

The draft program law mentions the following different situations:

• For the principal – individual, the conditions for obtaining the scheme will be (unless amended):
  • After completion of the work:
    • The principal-individual uses the building as the sole and principal owner occupied dwelling and establishes its domicile there ;
    • The living surface area is maximum 200m2 ;
  • Electronic declaration to the Minister of Finance (+ copy to service providers):
    • The planning permission; and
    • The building contracts;
  • Tax due no later than 31/12 of the year of first occupation;
  • Invoices issued by the service providers must mention the elements justifying the application of the reduced rate, to  release the service providers from their liability.
    
  • Invoices issued by the service providers must mention the elements justifying the application of the reduced rate, to  release the service providers from their liability.
    
  • Invoices issued by the service providers must mention the elements justifying the application of the reduced rate, to  release the service providers from their liability.
    
• The reduced rate will still be applied to current social benefits (long-term social rental).
• For the principal – legal entity – the conditions for obtaining the scheme will be (unless amended):
  • Demolition-reconstruction of a building located on the same cadastral parcel;
  • Tax liability from June 1, 2025;
  • Destination:
    • for own and sole habitation of an individual whose living area is maximum 175m2
    • for long-term social rental
    • for long-term rental to an individual whose living area is maximum 200m2
  • Electronic declaration before the time when the tax becomes due or in the case of sale on plan before the time when the taxable event occurs by attaching (+ in case of co-contractor – copy given):
    • the planning permission
    • the building contracts 
    • the private agreement or notarial deed.
  • Invoices issued by service providers must mention  the elements justifying the application of the reduced rate, to release the service providers from their liability.
• For long-term rental, the following conditions must be met:
  • After completion of the work:
    • Use as the sole and principal dwelling of the individual owner;
    • Living  surface area of maximum 200m2 ;
  • Electronic declaration to the Minister of Finance appended (+ copy to service providers):
    • the planning permission; and
    • the building contract;
  • Tax due no later than 31/12 of the year of first occupancy;
  • Invoices issued by service providers must mention the elements justifying the application of the reduced rate to release the service providers from their liability.

This is good news for property developers, although the difference in surface area maybe  discriminatory and unfounded. In addition to using controversial criteria, the differences in figures are meaningless.