Historical buildings now exempt from tax for individuals
Private purchasers of historical buildings in the Netherlands will now be exempt from paying transfer tax, according to Hague court ruling.Amsterdam -- In a recent decision by the Court of The Hague, private owners purchasing a historical building in the Netherlands will now be exempt from paying transfer tax. The decision is of significant interest for those in the property market, as the exemption can save a private individual 6 percent on the purchase price of their new home.
Previously, if a legal entity acquired a listed historical building (rijksmonument) no transfer tax was due. The Court of The Hague has now ruled that the exemption also applies to individuals who purchase a historical building.
In a statement on 10 June 2009, the State Secretary announced that he will not appeal against this decision. The Ministry of Finance, however, will evaluate the current transfer tax laws. National tax authorities will accept the exemption for both entities and private individuals. Furthermore, the exemption will be retroactive from 1 May 2009.
Robert Bosma, tax consultant and financial advisor from Finsens BV, recently commented “This ruling can result in significant savings for quite a number of individuals buying in the centre or south of Amsterdam, since many homes in these areas are listed buildings. Furthermore, maintenance costs on listed buildings are also tax deductible.”
Under certain conditions, real estate acquired before its historical building status was received may also be exempt from transfer tax, which could be good news for owners who bought a home prior to its being granted ‘listed building-status’.
For more information, contact:
Patricia van der Hut
31 (0)20 623 44 47