Transfer tax is the tax payable when a property is transferred into ownership.
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%.
Exemption from transfer tax for starters
Individuals 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 exemption before, they can simply use the exemption on an acquisition after 1 January 2021.
The application of this exemption is considered on a per person basis. If one of the acquirers is older than 35 or has used the exemption before, that person cannot use it, but the other acquirer can if they meet all the requirements.
When is transfer tax due?
In case a person or a legal entity acquires an immovable property, flat right, leasehold right, superficies right or easement, transfer tax is due. The tax is also due if only beneficial ownership is acquired.
In some cases, the transfer of shares in a BV or NV is subject to transfer tax. This may be the case if the assets of the BV or NV consist mainly of immovable property.
Exemption from transfer tax in other cases
In certain cases, a transfer is (partially) exempt from transfer tax. This is the case, for example, if an immovable property is transferred again within six months. However, transfer tax may also be exempted if turnover tax is due by operation of law and the transfer takes place before the first occupation.
In addition, acquisition under inheritance law or matrimonial property law is also exempt.
What is transfer tax due on?
Transfer tax is due on the consideration (purchase price) or the higher value. In addition, transfer tax is due over the capitalised value of (ground lease) canon, up to a maximum of the land value.
For information on transfer tax and its exemption, please contact us. We will be happy to advise you.
