Real Estate Transfer Tax in the Netherlands
When transferring Dutch real estate, Real Estate Transfer Tax (Stamp Duty) is levied upon the transfer. Transfer of real estate also includes the transfer of shares in a company whose assets consist for at least 30% of Dutch real estate, any limited rights to Dutch property and the transfer of beneficial ownership.
Transactions
The Real Estate Transfer Tax is levied at the moment of transfer or at the moment the deed of transfer for the registration in the public registers is prepared. The tax will be levied on the value of property at the moment of transfer, whereby the value is at least set at the price paid by the buyer. Any previous transfer values are not relevant.
Please note that any transfer of the same property within six months of a transfer on which Real Estate Transfer Tax is levied, is exempt from Real Estate Transfer Tax. Furthermore, the law holds a few very specific exemptions, for instance for large estate properties.
Differentiation of Tax Rates
The general tax rate in the Real Estate Transfer Tax is 8%, however the acquisition of property that is to become a main residence for the buyer after the property is bought is taxed with a reduced rate of 2%.
Contrary to some other publications, the tax law does not make a distinction between own properties and investment properties, but between the main residence and all other properties. The sale of a property that is to become a second home for the buyer is therefore taxed with 8% Real Estate Transfer Tax.
It is not important what the use of the property was for the seller, but the buyer has to declare in writing that they will use the property as their main residence. They will have to start using the property as their main residence right after they have obtained the property (or as soon as possible should the property have to be renovated or rebuilt). Any delay in using the property as a main residence is only allowed when the delay is caused by circumstances beyond control of the buyer. Whether circumstances are beyond the control of the buyer is at the discretion of the tax inspector.
Taxably
Taxably has an expert tax advisory practice with in-depth knowledge and experience in the real estate tax practice. We would be happy to assist you with your queries around buying and selling property in the Netherlands and the Real Estate Transfer Tax and other tax consequences.
