Transfer tax

Transfer tax rates (2023)

• On 1 January 2021, the starter's exemption (0% rate) was introduced. Due to this exemption, homebuyers between the ages of 18 and 35 will pay no transfer tax once if they buy a property of up to €440,000. The property must then be used "other than temporarily" as their main residence and this must be documented in a declaration.

• If the buyer does not meet these conditions for the starter's exemption, a rate of 2% can be applied if the self-occupation declaration is still completed.

• If the buyer will not self-occupy the property other than temporarily, the high rate of 10.4% will apply.

New approvals

Recently, a policy decision included two new approvals regarding the starter's exemption (0%) or the 2% rate. These are the following situations:

1. Economic ownership followed by legal ownership .

The starter exemption or the reduced rate cannot legally be applied if the buyer first obtains only economic ownership of a property and only later obtains legal ownership. This happens in the case of a key declaration: the buyer already gets a key to start renovating but the legal ownership (passing of deed) only follows later.
This undesirable situation is -conditional- removed.

2. Admission to a nursing home

If two buyers buy a property together and it is already clear at that time that one of them cannot or can only temporarily live in the property due to long-term admission to a nursing home (or similar institution), 10.4% real estate transfer tax would be due on the acquisition of this person.
This undesirable situation has also been removed provided that the relevant buyer is issued a CIZ indication for long-term care.