New Construction Surcharge in the Housing Valuation System Simply Explained

In some cases, a surcharge on the rental price of new construction properties can be applied under the housing valuation system (points-based rent). In this article, we will simply explain how this works. Or more specifically, we will explain the seven key rules.

Rule 1

The property must qualify as ‘new construction’ or ‘transformation.’ New construction refers to the addition of new square meters of living space. For example, a completely new complex being built or an existing house being extended with an additional floor. ‘New construction’ therefore includes both new builds as well as additional living space added to existing buildings.

There’s also the concept of transformation. Transformation occurs when a building with a different purpose than ‘residential’ (e.g., ‘industrial’ or ‘office’) is converted to residential use. This involves a change in zoning plans. For example, converting an office building entirely into a residential complex.

Rule 2

Splitting existing living spaces or renovating an existing home does not qualify as ‘new construction’ or ‘transformation.’ Therefore, you cannot apply the new construction surcharge in these cases.

Rule 3

The new construction surcharge only applies to mid-segment rental properties, which are homes with 142 to 186 rental points.

Rule 4

The new construction surcharge only applies to homes with a construction date before January 1, 2028.

Rule 5

You are not eligible for the new construction surcharge if the tenant rented the property before July 1, 2024.

Rule 6

The landlord must prove that they meet the above conditions. In other words, the burden of proof lies with the landlord.

Rule 7

The surcharge of 10% can be applied for a maximum of 20 years after the property is first rented. This means 20 years after the first tenant moved in, not 20 years after construction or delivery by the project developer.

An Example of the New Construction Surcharge

Suppose you rent out a newly built property that meets all the above conditions. The property has 165 rental points. According to the government’s schedule, this corresponds to a rent of €1022 (as of July 2024).
With the new construction surcharge, you can increase the rent by 10%. Therefore, you may charge (€1022 + 10% =) €1124.20 in rent.

If the Rent Price, Including the New Construction Surcharge, Exceeds the Deregulation Threshold, Is It Considered Free Sector Housing?

Unfortunately, no. The key factor is the number of rental points the property has before the surcharge is applied.