New Tax Rules in the Dutch Housing Market

A brief overview of the new housing taxes in the Netherlands starting from 1 January 2021

1. Starter's exemption from transfer tax:

Starters on the housing market are exempt from transfer tax under certain conditions. To do this, they must be 18 to 35 years old, obtain a right to a house, and use the house as their main residence other than temporarily.

Please note, from April 1, 2021, the additional condition applies that the home may not be more expensive than € 400,000.
The exemption may also not have been used before. Whether the conditions are met is assessed when the notarial deed of delivery is executed.
There is a transitional arrangement for buyers who bought a home before 1 January 2021. If they meet all the conditions, they can apply the exemption for a subsequent purchase.

2. Reduced transfer tax rate:

The reduced transfer tax rate of 2% only applies to natural persons who buy a house and use it as their main residence other than temporarily. Immediately before the acquisition, the acquirer must declare in writing that this is the intention.

3. General rate transfer tax

The general transfer tax rate will increase from 6% to 8%. This rate applies to all non-residence and to residences that are not used or only temporarily used by the acquirer as a principal residence, for example, a BV, housing association, and private investors.

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