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Property transfer tax from 2023 to 10.4%

If you buy land, a house or other property, you pay transfer tax. If you buy a home as an investment or if you buy a commercial property after January 1, 2023, you pay 10.4% transfer tax. Until then, the rate is 8%.

Transfer tax continues to rise

For a very long time, from 1979 to 2020, this rate was 6%. Since 2021 it has been increased to 8% and now it is increased even further to 10.4%. This high rate does not apply to all types of real estate. A lower rate applies for a house that you are going to live in yourself.

2% transfer tax

If you buy a house where you will live, a lower rate of 2% transfer tax applies. Provided you meet certain conditions. This rate will remain at 2% in 2023.

0% transfer tax (exemption)

First-time buyers do not pay transfer tax when purchasing their own home. This arrangement has been in effect since 2021 and will continue to exist. The conditions are:

• Buyer is between 18 and 35 years old
• The exemption has never been used before
• The house may not be more expensive than € 400,000

Pay attention when buying in 2022 but notarial delivery in 2023

The moment that the deed is signed at the notary is decisive for determining the transfer tax. Suppose you buy immovable property in 2022, but the notarial delivery takes place in 2023, then you pay 10.4% transfer tax. In that case, try to ensure that the notarial delivery also takes place in 2022.

Groninger deed

If that is not possible, a Groninger deed in 2022 may offer a solution. In such a deed it is agreed that the ownership of an immovable property is already transferred, but the purchase price is not yet paid. In the event of non-payment, the property automatically reverts to the seller. In the case of a Groninger deed, consider whether the extra costs of such a deed outweigh the 1% rate advantage that you gain. Moreover, many financiers do not agree with this. So first consult with your bank before you enter into this construction. An alternative is economic delivery of the property. Here too, transfer tax is immediately due, but with this construction you will also have to consult with the bank or financier first.

Source: https://www.bghaccountants.nl/overdrachtsbelasting-2023/