Property

Up to 8% property transfer tax

The government aims to increase the supply of rental housing, so that more citizens have access to affordable housing. Therefore, the proposal is to reduce the standard property transfer tax rate for the acquisition of dwellings from 10.4% to 8% with effect from 1 January 2026. For a dwelling which the purchaser will personally continue to occupy, the (existing) reduced rate of 2% or the exemption of transfer tax for first-time buyers continues to apply.

Extension of exemption of transfer tax for first-time buyers

The exemption of transfer tax for first-time buyers and the reduced transfer tax rate are extended to the acquisition of economic ownership of owner-occupied dwellings. In future, both the exemption of transfer tax for first-time buyers and the reduced rate may be applied to cases where economic ownership is acquired, as long as the other conditions are met.

Take note!

If the exemption of transfer tax for first-time buyers was used in the acquisition of economic ownership, then it cannot be used again in the subsequent acquisition of legal ownership.

No transfer tax for key agreement

Key agreements that usually lead to economic ownership of a dwelling are excluded from transfer tax (overdrachtsbelasting, OVB). The following requirements apply to this:

-          The key agreement must be linked to the commitment agreement for delivery of the dwelling.

-          Legal ownership must be transferred within six months of the key agreement.

-          The exemption of transfer tax for first-time buyers or the 2% rate must apply.

For example, there is no longer a taxable acquisition prior to the legal acquisition.

Extension of exemption on sale under specified conditions

On the repurchase of dwellings in the context of ‘sale under specified conditions’ (verkoop onder voorwaarden, VoV) the so-called VoV exemption can be applied. The exemption on sale under specified conditions is extended to ‘appurtenances’ at dwellings, such as sheds and garages, which are simultaneously acquired with the dwelling.

The concurrence exemption

The concurrence exemption for the purposes of transfer tax for share transactions is being adjusted. A rate of 4% will apply in future if it concerns new property for the purposes of VAT which is exploited for less than 90% subject to VAT.

Austerity of the plot exchange exemption

The plot exchange exemption for the purposes of transfer tax will no longer apply to dwellings, except for agricultural housing. Other buildings are only eligible if they are used for agricultural farming for at least ten years. If this continuation requirement is not met, transfer tax will still be payable, unless agricultural seizure is affected by government intervention. These changes reduce administrative burdens and improve enforceability. The government also wants to counter ‘plot exchange constructs’.

 

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