Dutch end of year tip #3
Dutch transfer tax goes up in 2023
The Dutch property transfer tax goes up in 2023 for lots of houses. In 2022, the transfer tax for non-main residences is still 8%. However, from 2023, this transfer tax increases to 10.4%. Are you planning to buy a second house? If you have the opportunity, we recommend arranging this before 2023.
General transfer tax goes up to 10.4%
On Budget Day, the government announced that the general transfer tax rate rises to 10.4% in 2023. With this measure, the government hopes to improve the position of first-time homebuyers towards investors. So, if you can arrange that you can still purchase your second house (investment property, holiday home) in 2022, it will save you a considerable amount of transfer tax.
Example rising transfer tax 2023
Imagine that you buy an apartment in the Netherlands where your child is going to live. This house is not used as your main residence, so the general transfer tax rate applies.
You bought the apartment for €350,000. In 2022 you pay (8%) €25,000 in transfer tax. But if you become the owner of the house in 2023, this amounts to (10.4%) €36,400 in transfer tax. A difference of €11,400!
Higher transfer tax exemption
The reduced transfer tax rate of 2% continues to apply to people who purchase a home with the intention of living in it themselves. As soon as you meet the conditions, buyers between 18 and 35 years old do not have to pay transfer tax for the house. An important condition is that in 2022 the house may not exceed €400,000. From 2023, this amount is a maximum of €440,000. Are you unable to find a house for €400,000? Then it is wise to wait until after January 1, 2023. With a house price of €440,000, it will save you (2%) €8,800 in transfer tax.
We help with your Dutch taxes
Speak directly with one of our tax advisors
Have you bought a house, or are you planning to buy one? We are happy to help with tax matters. We can also get you in contact with a mortgage advisor and broker. Feel free to contact us using the details below.