Transfer tax

Transfer tax is generally payable when acquiring immovable property.

What is the transfer tax rate?

From 1 January 2022, the transfer tax rate is 10.4%, unless it is the acquisition of a property by someone who will use the property as their main residence. In that case, the rate is 2%. This means that the acquisition of a recreational house or student house for a child is taxed at 10.4%.

Transfer tax exemption for first-time buyers

Persons aged between 18 and 35 years will not owe transfer tax if they acquire a house after 1 January 2021 and start using that house as their main residence. The exemption does not apply if they have already used the exemption once after 1 January 2021. If they previously owned a home but have not used this starter's exemption before, they can simply use the exemption on an acquisition after 1 January 2021.
For acquisitions after 1 April 2022, the exemption will lapse if the value of the home or consideration exceeds €440,000.

Transfer tax on acquisition of shares

Transfer tax may also be due when shares in a BV or other legal entity are transferred. This is the case if:

• the main purpose of the company concerned is to operate immovable property;
• based on fair market value, more than 50% of the assets consist of immovable property, 30% of which is located in the Netherlands;
• the acquirer acquires an interest of 1/3 or more, whether or not together with related persons.

If you are dealing with a company whose assets consist of more than 50% immovable property, it is important to get in touch to see what the possibilities and risks are with regard to transfer tax.

Transfer tax exemption in other cases

An exemption from transfer tax applies in a number of cases. For example, in case of new construction and the seller has to charge sales tax. However, an exemption may also apply to an acquisition under inheritance law or to the division of a community of property.

How is the transfer tax return filed?

The transfer tax return is almost always filed by the notary, as a kind of appendix to the deed of transfer.

What is transfer tax due on?

To determine the basis for calculating transfer tax, in the case of a flat right, the share in the reserve fund may be deducted from the amount of the consideration. When transferring or establishing a leasehold right or other restricted right, transfer tax is also due on the capitalised value of the canon payable in the future.

For more information on the applicable rate and transfer tax exemptions, please contact us. We will be happy to assist you.