Transfer tax Netherlands 2024

Transfer tax Netherlands 2024

Real estate transfer tax Netherlands 2024

When you buy a property in the Netherlands, you have to pay transfer tax (‘Overdrachtsbelasting’). The transfer tax rates for property purchases are:

  • 2 percent for residential property and extensions such as a shed or garage (attached to the residential property) for primary use
  • 10,4% percent for a second home, buy-to-let property or mixed-use housing.

 

Residential property

The 2 percent rate of transfer tax (‘overdrachtsbelasting’) on residential property applies to every buyer, regardless of whether the buyer has a private residential or investment purpose. The 2% rate also applies to the purchase of a garage, provided that the garage is attached to the residential property. Otherwise, the 10,4% percent rate applies.

Starter exemption from transfer tax in 2024

In the Netherlands, you can benefit from a starter exemption from transfer tax if you are buying a property for your own use, are under 35 years of age and have not benefited from the exemption on a previous purchase. From 2024, you won’t have to pay any transfer tax on a purchase price of up to €510,000, compared to €440,000 in 2023. This can save you the 2% transfer tax that would otherwise apply, your advantage could be up to €10,200, which is serious money.

Do you qualify for the starter’s exemption?

This tax relief is subject to conditions. Will you be under 35 years of age when the property is delivered in 2024? Is the purchase price less than €510,000? Is this the first time you have used the exemption? Then you qualify for the exemption! If you will be 35 in 2023, it is important to ensure that the delivery takes place before your birthday. The exemption will only apply to a purchase price of up to €440,000. If you are buying a property together and one of you is under 35 and meets the other requirements, then one person will pay 2% tax on 50% of the purchase price and the other person will pay 0% tax on the other half.

Also note that the purchase price is what determines whether you qualify for the exemption, so if you buy a property for more than €510,000 but plan to bring in some capital, you will not qualify for the exemption. The exemption also does not apply if you are buying a property as a buy-to-let, in which case the transfer tax in the Netherlands is 10.4%.

How to pay property transfer tax in the Netherlands?

There are two ways of paying property transfer tax. These depend on the type of property you are buying and whether you are using a third party to complete the transaction.

Through a notary

This should be straightforward enough. A notary is a person authorised to carry out certain legal formalities. They can certify documents, including title deeds, for use in other jurisdictions. In most cases, a notary will arrange the transfer of ownership of your home after you have signed a title deed. This includes filing the transfer tax return and paying the tax due to the authorities.

Do it yourself

This is a little more complicated. If you do not have a deed drawn up by a notary, you will have to inform the Belastingdienst. You have one month after the purchase to file and pay a transfer tax return. Filing a transfer tax return yourself is an issue, for example, if you transfer only beneficial ownership of a property.

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