3% housing VAT
The 3% housing VAT is a super-reduced rate applied to the construction or renovation of a home used as a main residence, instead of the standard 17% rate.
The reduced rate must be requested from the Registration, Estates and VAT Authority, which issues an approval before or during the works. The tax advantage obtained is capped per home: beyond it, the standard rate applies.
It also covers buying a new home off-plan, for the construction part. The home must then actually be occupied as a main residence, by the owner or by a tenant.