Changes to Transfer Tax on Residential Property

You will pay Transfer tax ('Overdrachtsbelasting') on the purchase of real estate property in the Netherlands. The transfer tax rate for real estate property purchases are:

• 2 percent for residential property and attachments such as a shed or garden room
• 6 percent for commercial property

Residential property

The 2 percent rate transfer tax ('overdrachtsbelasting') for residential property applies to any buyer, irrespective whether the buyer has has a private residential or investment objective. The 2 percent rate also applies to the purchase of a garage, provided that the garage form an attachment with the residential property. Otherwise the 6 percent rate applies. The 2 percent transfer tax is refundable if the residential property remains for less than 6 months in a buyers possession. 

Commercial property

The 6 percent transfer tax ('overdrachtsbelasting') applies to offices, warehouses, land, hotels, care homes and the like. If part of the commercial building is for residential living, the 2 percent transfer tax rate applies to that particular part of the building.

Dutch cabinet introduces changes to transfer tax for residential property

The Dutch cabinet introduces significant changes to the transfer tax ('overdrachtsbelasting') for residential property as of 1 January 2021. Transfer tax for residential property is being raised to 8 percent if the buyer is a different from the person moving into the house (i.e. investors are paying 8 percent transfer tax). The reduced 2 percent transfer tax rate remains applicable to residential property purchase for buyers moving into that property. 

First time home buyers in the age between 18 and 35 years, are exempt from transfer tax. 

These transfer tax changes are subject to Parlement and Senate approval of the bill.