Transfer tax is tax levied when someone purchases or receives property (corporate building, house or a land). You do not always have to pay transfer tax and sometimes there are exemptions. You might also wonder which tax rate applies to your situation. It is therefor wise to be well-informed of the possibilities!
Paying transfer tax
In the Netherlands, you are obliged to pay transfer tax in either of the following cases. You become owner of:
- Property (for example a house, building or land);
- Rights to property (for example building lease, leasehold or membership lease of cooperative apartment corporations);
- Shares in a BV, NV or partnership whose possessions exist mostly of real estate.
Over which amount you have to pay transfer tax depends entirely on your situation. Our advisers are happy to help you with your situation.
The Dutch tax office uses two tax rates. Which tax rate applies depends on what you become owner of:
- The tax rate of 2% applies to houses and associated appurtenances. The rate is applicable to, for example, a privately owned home, second home or holiday home, a rented home and corporate home. This also includes the garden, garage, shed, conservatory, fence and annex or extension. This rate also applies to the garage as long as the house and garage are to be seen as one.
- The tax rate of 7% applies to all other property. The rate is applicable to, for example, corporate buildings, hotels, pensions, land destined for home building, a purchased scaffolding and the water at a houseboat.
Do not pay transfer tax
Depending on your situation, it may be possible that you do not have to pay transfer tax or you will be granted an exemption. Some of the situations where you do not have the obligation to paying transfer tax are:
- Marriage: you become owner of property as a result of marriage or registered partnership;
- Divorce: you become owner of property, which belonged to your partner, as a result of a divorce.
- Expansion: you build something in or on a property you already own;
- Inheritance: you inherit property;
- Family: you receive property from family members;
- Value added tax (VAT) / turnover tax: you have to pay both transfer tax and value added tax;
- Estate: you purchase an estate.
There are more situations possible. Feel free to contact one of our advisers.
Personal contact and advice
Feel free to contact one of our advisers if you require personal advice. They can guide you in favorable transfers and inform you regarding possible exemptions.