Following the increase in 2021, the Dutch government announced a further increase in the transfer tax for investors on 1st January 2023. Investors' transfer tax will increase from 8 % to 10.4 % in 2023.
What if you purchase property at the very end of 2022?
It depends on the notarial delivery. This means that even if you purchase your home in 2022 but have the transfer deed only in 2023, the 10.4 % transfer tax will apply.
*From 1st January 2023, the home's value increases from €400,000 to €440,000.
Homebuyers aged 18 to 35 who buy their first property worth up to € 400.000 can benefit from an exemption of the 2% transfer tax.
You need fewer savings to close your mortgage, and you can keep more of your savings in your pocket. The property transfer tax (overdrachtsbelasting) is 2% of the purchase price. If you buy a residential property in the Netherlands, you must pay 2 percent of the property price on tax.
For example, if you buy a home worth € 350.000, you must pay the transfer fee of € 7,000. First-time home buyers who are under 35 years and buy a property for less than € 400.000 will save € 7,000. If you can benefit from this exemption, you need fewer savings to close your mortgage.
The housing shortage is an issue in some Dutch cities. By reducing the costs for first-time buyers and increasing the tax for investors, the Dutch government tries to create a more level playing field for first-time homebuyers in the Netherlands. Simultaneously, individuals who invest in real estate pay a higher tax fee.
The Dutch government believes that investors and first-time homebuyers compete for the properties that belong to the same price range. Hence, the government aims to encourage and help starters to become homeowners in the Netherlands.
|Type of buyer||Residential||Other real estate|
|First-time buyers (age between 18-35 years)||0%||8% *|
|Moving homes (when you buy your second property)||2%||8% *|
* In 2023, the transfer tax is expected to increase from 8% to 10.4 %.
For example, if you plan to buy a commercial property, a holiday home, or a buy-to-let property, you pay 8% from the following year. If you decide to move houses, you pay a transfer tax of 2 % for the second residential property.
When you buy a home in the Netherlands, you must pay closing fees, including a transfer tax, the cost for a bank guarantee, real estate agent, notary, translator, valuation report, bank guarantee, and mortgage advice.
Mortgage closing fees are tax-deductible in the Netherlands. You can receive a tax return on the valuation report, mortgage brokerage, and advisory and mortgage-related fees at the notary (deed of mortgage and public land records).
Angela is planning to purchase his first home for € 400.000. She is single and under 35 years old, and she will pay 0% of the property transfer tax when buying his first home.
Kate and John plan to buy their first home together for € 400.000. Kate is 37, and John is 33 years old. In this case, Kate pays 2% on her property share, and John pays 0% on property transfer tax.
Kate and John are both 33 years old, and they plan to buy a home together. Kate already has an apartment, while John is a first-time homebuyer. In this case, Kate pays 2% on her property share since it's her second property, and John pays 0% on property transfer tax.
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