Transfer tax 2021?

The 2de kamer (House of Representatives) passed a bill that will significantly change the transfer tax model on 1 January 2020. Compared to now, some home buyers will benefit while others will have to pay more next year in terms of transfer tax. The transfer tax is calculated on the purchase price that you pay; the civil-law notary calculates this for you and takes care of the settlement with the tax authorities.

If you plan to buy or sell a house or it concerns other real estate, then it is good to find out whether you still need to take action in 2020. The 1st kamer (Senate) still has to debate and vote on the bill.

The changes

Starters?

Home buyers between the ages of 18 and 35 are considered first-time buyers. They do not have to pay transfer tax if they buy a house with a purchase price of  € 400.000,–  or less. If the purchase price is higher than that amount, they pay 2% transfer tax on the entire purchase price. You can use this starter exemption only once.

There is a so-called transitional arrangement that means that if you become the owner of a house before April 1, 2021, it does not matter what the purchase price is. In other words: you can also invoke your starter exemption for a more expensive home than 400,000 euros.

Not a starter? 

Only if you are going to live in a house yourself, you pay 2% transfer tax. For a second home, a piece of land, a business building or an office villa you pay 8% of the purchase price. This also applies to shares in a so-called real estate BV.

New and old?

  • home for starters (ages 18 to 35 years, purchase price of the house max € 400.000,– ); now: 2% -> new: 0%
  • not a starter: Own home where you live in yourself; now: 2% -> new: 2%
  • home you don’t live in yourself, a second home, home you buy for your child(ren), home to rent out; now: 2% -> new: 8%
  • office building that used to be a home; now: 2% -> new: 8%
  • plot of land, commercial property, retail property, other real estate now; 6% ->new: 8%
  • shares in a real estate BV; now: 2% or 6% -> new: 8%

Keep in mind that in the above not all changes are included and also that there is still a lot unclear so you need definitely more info to decide what’s best concerning transfer tax. We will keep you posted!