Transfer tax is a tax levied on the transfer of immovable property, such as houses and other real estate in the Netherlands. Here are some key points about transfer tax:
1. Rate: The rate of transfer tax can vary. As of 2024, the general rate for homes is usually 2% of the purchase price for owner-occupied properties, while the rate for non-owner-occupied properties (such as investment properties) is 10.4%.
2. Applicability: This tax is payable when ownership of property is transferred. This includes transactions such as buying a house, but can also apply in other situations, such as certain gifts of property.
3. Exemptions: Some exemptions and reductions are available. For example, as of 1 January 2024, the limit for the abolition of transfer tax for first-time buyers aged between 18 and 35 is € 510.000,-.
4. Payment: The buyer is usually responsible for paying this tax. The notary who handles the property transfer usually ensures that the tax is paid to the tax authorities.
5. Calculation: The tax is calculated based on the purchase price of the property. If the purchase price is lower than the market value, the tax authorities may base the tax on the market value.
Understanding these aspects can help you plan the financial side of buying property in the Netherlands. If you are considering buying property, it is often wise to seek advice from a notary or tax advisor to get detailed and personalized advice.
Are you between 18 and 35 years old and buying a property in Amsterdam up to € 510,000,- Then you do not have to pay transfer tax!
