Tax Plan 2021

REAL ESTATE

Transfer tax exemption for starters
Starters on the housing market are exempt from transfer tax under certain conditions. They must be between 18 and 35 years of age, obtain a (right to a) home and start using the home (other than temporarily) as their main residence. The exemption also may not be used earlier. Whether the conditions are met will be assessed at the time of the acquisition (the execution of the deed). In the case of a joint purchase of a house, the application of the exemption per person must be examined. An exemption may apply to the share of one buyer and not to the share of the other buyer.

A transitional arrangement for purchasers exists for buyers who have bought a house before 1 January 2021. If they meet all the conditions, they can also apply for the exemption in case of a subsequent purchase.

Reduced rate restriction 
The reduced rate of 2% transfer tax only applies to natural persons who are going to use a house, other than temporarily, as their main residence. The acquirer must declare in writing immediately prior to the acquisition that this is the intention. The Tax Authorities will check afterwards whether the buyer has indeed started to use the home as his main residence for a longer period of time. The Tax Authorities may therefore reverse the application of the reduced rate (with tax interest and possibly a fine). The tax authorities must take into account unforeseen circumstances, such as a divorce or death.

Fictitious real estate and economic ownership 
Two cases are excluded from the starter exemption and the reduced rate of transfer tax. Firstly, the acquisition of only the beneficial ownership of a house, without the legal ownership also being supplied. Secondly, the acquisition of shares in a legal entity which mainly owns immovable property.

Transfer tax increased to 8% 
The general rate of transfer tax will be increased from 6% to 8%. This rate applies to all non-residential properties and to properties that are not or only temporarily used as main residence by the acquirer. So, for example, for holiday homes, homes that parents buy for their child, business premises and acquisitions of homes by non-natural persons such as legal persons (e.g. a BV or housing corporation).

Filing a declaration in case of exemption transfer tax 
If an exemption for transfer tax is applied, a transfer tax return must be submitted for that acquisition.