Tax when selling property in the Netherland (2024)

FAQs

What is the tax on selling a house in the Netherlands? ›

The transfer tax due is calculated on the purchase price or the market value, if higher. The applicable tax rate is 10,4% or 2% if the purchaser acquires a house to use this as a main residence.

The general tax rate of the transfer tax is 10.4% as of 1 January 2022. It is relevant whether the buyer will actually live in the property on a long-term basis (so no holiday homes or buy-to-let properties) to be eligible for the lower tax rate of 2% or the tax exemption for starters under 35.

If you want to sell your home and pay off the mortgage in the Netherlands, you must inform the lender of your intention to sell the property and pay off the mortgage. In this situation, you keep your current mortgage without applying for a new one or paying off the existing one.

The rate of 2% applies on the transfer of dwellings if the buyer uses the dwelling as main residence. Other real estate and dwellings used as second residence or holiday home is subjected to 10,4% transfer tax.

If you live in the Netherlands, you must state your complete worldwide income in your tax return. Your income from abroad is also part of your worldwide income (for example income from employment or foreign property).

If you sell your foreign property, you may be able to make a 1031 exchange (also called a like-kind exchange), in which you swap one investment property for another similar property on a tax-deferred basis. Many investors use this strategy to defer paying capital gains and depreciation recapture taxes.

Moldova applied the lowest capital gains tax at 6%, while Bulgaria and Romania came in at 10% each and Croatia at 12%. Greece and Hungary both followed with 15%. Several countries, such as Belgium, Czech Republic, Georgia, Luxembourg, Malta, Slovenia, Slovakia, Switzerland and Turkey don't impose a capital gains tax.

Tax is levied at a fixed rate of 26.25%. This percentage will rise to 26.9% in 2021. Non-residents are taxable on capital gains and regular income from a substantial interest in a company resident in the Netherlands.

No changes to the main Dutch tax rates

As to the Real Estate Transfer Tax (RETT) tariff, a 2% rate applies to residential property for own use and as of January 1, 2023, the 8% RETT tariff was increased to 10.8%. Both tariffs will remain unchanged in 2024. Also the VAT rates (21%) will not be amended.

What is the transfer fee for a house in the Netherlands? ›

The property transfer tax (overdrachtsbelasting) is 2% of the purchase price. If you buy a residential property in the Netherlands, you must pay 2 per cent of the property price on tax. For example, if you buy a home worth € 510.000, you must pay the transfer fee of € 10.400.

Dutch inheritance tax rates vary depending on the nature of the relationship between the deceased and the acquirer of the assets: Inheritance tax percentages for partners and children vary from 10% to 20%; Inheritance tax percentages for grandchildren and great-grandchildren vary from 18% to 36%;

The Netherlands are one of the only countries in Europe where there is no time limit. You can sell your house on the next day following purchase. If you sell your real estate within 3 years, the State will refund 2% of the value of the house that you paid when purchasing it (k.k).

Dutch house prices are high, and the additional costs of buying a home in the Netherlands can add up. Despite this – and the fact renting remains common – owning a home in the Netherlands usually makes good financial sense in the long term. Tax benefits for homeowners mean that mortgage costs are often lower than rent.

The process of moving or transferring your mortgage from one property to another is known as porting. Moving your current mortgage to a new property can be cost-effective since you don't need to pay exit fees or early repayment charges.

Dutch inheritance tax rates vary depending on the nature of the relationship between the deceased and the acquirer of the assets: Inheritance tax percentages for partners and children vary from 10% to 20%; Inheritance tax percentages for grandchildren and great-grandchildren vary from 18% to 36%;

at your municipality, province, or water authority

Do you own or use commercial property in the Netherlands? You must pay property tax (onroerendezaakbelasting, OZB) to the municipality where the property is located. Property tax is 1 of several municipal taxes.

When you sell a property overseas, you're responsible for capital gains taxes — or taxes you owe when you sell a property for more than you paid for it. You must report any capital gains on Form 1040, Schedule D in USD.

In the Netherlands, consumers pay value added tax (VAT) on all goods and services they buy. VAT is included in the price. The consumer pays the VAT to the trader, who then remits it to the Tax and Customs Administration.