UPDATE 2024

Property transfer tax for first-time home buyers will increase from € 440.000 to € 510.000 in 2024. Homebuyers aged 18 to 35 who buy their first property worth up to € 510.000 can benefit from an exemption of the 2% transfer tax in 2024.

Homebuyers aged 18 to 35 who buy their first property worth up to € 440.000 can benefit from an exemption of the 2% transfer tax in 2023. 

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 € 440.000, you must pay the transfer fee of € 8.000. First-time home buyers who are under 35 years and buy a property for less than € 440.000 will save € 8.800. If you can benefit from this exemption, you need fewer savings to close your mortgage.

The property transfer tax for buy-to-let investors is 10.4%.

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 properties that belong to the same price range. Hence, the government aims to encourage and help starters to become homeowners in the Netherlands.

For example, if you plan to buy a commercial property, a holiday home, or a buy-to-let property, you pay a transfer tax of 10.4%. 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).