What will change about the transfer tax?

1. Current Rates and Exemptions

• Standard Rate for Home Buyers: The transfer tax rate for private buyers purchasing a home to live in it for themselves is currently 2% of the purchase price.

• Rate for Non-Residential Properties: A rate of 10,4%. This higher rate also applies to companies buying property.

• Exemption for Starters: To encourage young home buyers, the government offers a one-time exemption for first-time buyers under the age of 35.

2. Conditions and Restrictions

• Starter exemption: The exemption applies only to buyers aged 18 to 34 and can only be applied if the home is intended to be their primary residence. In addition, the exemption is maximum €440.000; for more expensive homes, the standard rate of 2% applies.

• Temporary Uses: For homes purchased as investments or vacation homes, no exemptions apply and the 10.4% rate applies.

3. Effects of Transfer Tax

The transfer tax affects the total cost when buying a home or property. First-time buyers benefit from the lower tax burden due to the exemption, while investors and businesses incur significantly higher costs. Differences in rates can affect the real estate market, with buyers possibly deciding to change their plans depending on tax conditions.

4. Future Expectations

The transfer tax is regularly the subject of policy discussions, with changes being considered to make home ownership more attractive, especially for young buyers.

What do these changes mean for you?

Are you a starter and looking for a home? Then it is wise to make sure that the key transfer takes place after January 1, 2021, then you will pay 0% transfer tax.

Are you a starter and looking for a home over €400,000? Then it is wise to have the key transfer take place after January 1, 2021, but before March 31, 2021. You will then pay 0% transfer tax.

Are you an investor, do you want to buy a second home or, for example, buy a home for one of your children? Then we advise you to have the transfer take place before December 31, 2020. You will then pay 2% transfer tax, instead of the 8% that applies from January 1, 2021.

The most important information at a glance:

• The transfer tax advantage for starters takes effect on January 1, 2021

• From January 1, 2021 to March 31, 2021, a starter pays 0% regardless of the amount of the purchase price

• From 1 April 2021, a starter pays 0% transfer tax on homes up to € 400,000, - If the purchase price is higher than € 400,000, then a starter still pays 2% transfer tax on the entire purchase price.

• An investor will pay 8% transfer tax as of January 1, 2021 instead of the current rate: 2%.

Should you have any questions about transfer tax, we would be happy to assist you.