Buying a house in the Netherlands now cheaper as government cuts transfer tax

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On 1 July 2011, the Dutch government decided on a regulation to boost the Dutch housing market.

The transfer tax (overdrachtsbelasting) is going to be reduced for a period of one year from six percent to two percent. This new rule will be backdated to 15 June 2011.

The income lost on this scheme is estimated at around EUR 1.2bn.  To compensate, the government plans to impose an extra tax on banks in the form a new tax on profits.

The rule will end 1 July 2012.

How do the new rules affect your current situation?

Below are some FAQs

I've recently purchased a house and it is transferred into my name at or after June 15th?
You will receive four percent back through the notary's office. The rules are so new that we don't know yet how much time this will take and what the procedures will be.

I've recently signed an offer and the transfer of ownership is due in the coming weeks/months?
You will pay two percent instead of six percent If and how this would be changed in regards to the amounts within the offer is not clear yet. We will keep you posted.

I want be buy a property in the near future?
You will pay two percent transfer tax instead of six percent.

How will this affect the new mortgage rules effected August 1st 2011?
Not clear yet. We will keep you posted.

I want to buy next year but the transfer of title could be after June 30 2012?
In that case the six percnent  transfer tax will be applicable. So make sure you will convey the property in your name 30 June 2012 latest!

Chris van Maasdijk is partner at Expat Mortgages and Expatica Mortgage expert.

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