Monique Burgemeester has worked with a lot of associates in the real estate industry over the years, including René van der Velde. René is an experienced financial advisor with a demonstrated history of working in financial services. Two years ago he started together with Rob Wouters his own company (Wouters & Van der Velde). Preceded by his fantastic reputation, René is knowledgeable in an abundance of topics such as Mortgage and Financial Planning.
Recently, we decided to catch up with René to get his insights on the latest updates to this year’s transfer tax and how it may affect anyone looking to buy a house in the Netherlands.
What was the old situation regarding transfer tax?
You have to pay 2% transfer tax over the purchase price. This year, it has changed and is now subject to the purpose of the property; this is to ensure the system is more attractive for first-time buyers.
What changed for first-time homebuyers from January 1st, 2021?
At the moment, those under 35, do not have to pay transfer tax at all. When you buy a buy-to-let house, you have to pay 8% transfer tax.
What will be the situation if you’re going to buy together and only one of us is younger than 35?
If you buy the property 50/50, you have to split the transfer tax into 0% and 2%. So, in fact you have to pay 1% transfer tax over the purchase price.
What will change on April 1st, 2021?
Yes, changes have been made to the exemptions heading into 2021. There will be a max purchase price of €400,000, and if you buy the property after 1st April you will have to pay the 2% transfer tax, regardless of your age.
If you want to sell your house after a certain period and you are lucky to make a profit, what taxes do you need to pay?
You don’t have to pay capital gain tax if you are selling your property
What will change for UK citizens who want to buy a property because of Brexit?
If someone from the UK would like to buy property in Holland, they must apply for a resident’s permit in 2021 – EU citizens have automatic access to this.
Looking to get in touch with René to discuss your own situation in buying a property? Contact rene@woutersenvandervelde.nl.