Transfer tax

When do you pay transfer tax?

You pay transfer tax when you become the owner of :
  • Real estate
    For example, a house, commercial property, or a piece of land.
  • Rights to real estate, such as:
    Rights of superficies (opstalrecht). Rights of superficies allow you to build something on, in, or above someone else's property without becoming the owner of the land.
    Leasehold rights (erfpachtrecht). Leasehold rights allow you to use the land on which, for example, your house stands for a certain or indefinite period without becoming the owner of the land.
  • Shares in an NV or BV whose assets consist mostly of real estate. We call these real estate legal entities.
  • Membership rights of a (cooperative) apartment association are the rights to use (a part of) a building owned by the association without becoming the owner of that (part of the) building.

First-time buyer exemption

Do you acquire a property in which you will personally reside for an extended period? And are you between 18 and 35 years old? If you also meet the other conditions, you qualify for the first-time buyer exemption. In that case, you do not have to pay transfer tax. Acquiring usually means buying the property, but it doesn't have to. It can also involve acquiring (a share in) ownership as a result of, for example, leasehold, building rights, usufruct, or condominium rights. By 'properties', we mean immovable properties that are, at the time of transfer, inherently intended for habitation. This also includes appurtenances. The first-time buyer exemption does not apply to (to be renovated) commercial buildings and spaces, separate garage boxes, and land designated for housing construction. Also, if you purchase a property that is demolished after the purchase, the 2% rate or the first-time buyer exemption may not apply, and the rate of 10.4% applies. For properties where you will not personally reside for an extended period, such as a holiday home, you pay 10.4% transfer tax.

Conditions first-time buyer exemption

You are entitled to the first-time buyer exemption if you meet the following 4 conditions:
  1. You acquire a property in which you will personally reside for an extended period.
  2. You are of legal age and younger than 35 years old at the time of acquiring the property. The moment of acquisition is the moment of signing the notarial deed of transfer at the notary's office.
  3. At the time of acquisition, the property value must not exceed €510,000. This concerns the property including any appurtenances such as a garden, shed, or garage. This value is usually equal to the purchase price stated in your purchase agreement. If the purchase price including appurtenances is higher, for example, €520,000? Then you are not entitled to the first-time buyer exemption.
    If the property is on leasehold land, the value of the capitalized ground rent is also added to the value of the property.
  4. You have not previously used the first-time buyer exemption.

Did you already own a home before? You can still qualify for the first-time buyer exemption, as long as you meet the conditions.

Please note If you acquire the property together with someone else, for example, your partner, both of you can benefit from the exemption if you both meet the conditions. If one of you does not meet the conditions, the exemption applies only to the person who does. The exemption is calculated based on his or her share of the property.

0% transfer tax

As explained above, there is an exemption from transfer tax from 2021 for young people between the ages of 18 and 35 who buy a home. In addition, you also receive exemption from transfer tax in the following situations:
  • By marrying in community of property or registering your partnership, you become co-owner of your partner's own home at once. Because there is no acquisition but rather a merger of property, you are not liable for transfer tax.
  • By statutory inheritance law or by a will, you can become the owner of a home. If you inherit a home from an estate, you are liable for inheritance tax. To prevent double taxation, you do not have to pay transfer tax.

Under certain conditions, you will also be exempted from transfer tax in the following cases:

  • In case of concurrent taxation with value-added tax;
  • In case of business transfer to family members: from parents to children, from grandparents to grandchildren, and from siblings to each other;
  • In case of division of a joint property between cohabitants (if the ownership ratio of the joint home falls between 40 and 60 percent).