Transfer Tax (Overdrachtsbelasting)
Transfer tax (overdrachtsbelasting) is a one-time tax you pay when purchasing real estate in the Netherlands. The rate depends on the type of property and your personal situation. For homes you will live in yourself, the rate is 2%. Buyers between 18 and 35 purchasing their first home are exempt up to a purchase price of €510,000 (in 2025) – the starter exemption. For non-residential property (commercial buildings, land) and investment property, a higher rate of 10.4% applies. This also applies if you buy a second home for rental purposes. The transfer tax is paid at the notary at the time of the property transfer. The basis for the transfer tax is the purchase price or the WOZ value, whichever is higher. Exemptions sometimes apply, for example when acquired by a spouse or in family business transfers.
Example
You buy your first home for €350,000 and you are 28 years old. Thanks to the starter exemption, you pay €0 in transfer tax. If you buy a home at age 36 for €400,000, you pay 2% = €8,000. If you buy an investment property for €300,000, you pay 10.4% = €31,200.
Why does this matter?
Transfer tax is a significant cost when purchasing real estate. The starter exemption offers a major advantage for young buyers. Always check whether you meet the conditions and account for this cost in your financing plan.
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