Starter’s exemption from transfer tax approved
In December 2020, the Dutch senate gave its approval to the Tax Plan 2021, which also includes the transfer tax exemption for first-time buyers and some people who are buying their next home. In this update, we will discuss the most important points. The figures below are always up-to-date.
What was the situation until 2021?
When you buy an existing house, you must pay a 2% transfer tax on the purchase price of the property. Since 2018, this had to be paid entirely out of your own capital, as well as all other additional costs. So until now, to buy a first home, you had to have a pretty penny in your pocket. This made it very difficult for people to buy their first home.
What has changed since 2021?
By adjusting the rules on transfer tax, the Dutch government wants to improve access to the housing market for first-time buyers. It has now been decided that starters will no longer have to pay a transfer tax, provided they meet a number of conditions.
What are the requirements to qualify for the exemption from transfer tax?
- A buyer must be at least 18 years old and under 35 years old.
- The exemption is only for purchasing a home.
- You have to sign a declaration stating that you will occupy the property yourself.
- You have to be using this starter’s exemption for the first time. You certify this by signing a statement to this effect before a civil-law notary.
In addition, the following rule applies:
- The value of the purchased property at the time of transfer must be less than € 510,000 (in 2024). This maximum will be indexed annually.
Download the statement for the transfer-tax exemption for starters (in Dutch) here.
Exemption for people moving up the housing ladder?
Are you buying your second home, but do you otherwise meet all the mentioned conditions? And have you not used the exemption before? Then you are in luck, because in that case too, you can make use of the exemption.
Will anything change for other buyers?
Do you not meet the mentioned conditions? In that case, nothing changes and the 2% transfer tax rate continues to apply. You can download and complete a statement (in Dutch) for this too.
Buyers who buy a property that’s not intended for their own use (such as holiday homes, investment properties and business premises) will have to pay 10,4% transfer tax from 2024. In this way, the government tries to discourage the purchase of buy-to-let homes. It is expected that this will slow down the rise in house prices.
Would you like to find out what applies to your situation? In this flow chart (in Dutch), you can check it out step by step.