What is property transfer tax in the Netherlands?
Transfer tax, known in Dutch as “overdrachtsbelasting” is a tax that must be paid to the Dutch Tax Office when real estate—such as a house, piece of land, or commercial property—is purchased. This tax applies whenever the ownership of a property changes hands, which most often happens when the deed is signed at the notary’s office.
Why is a transfer tax needed?
Transfer tax is a method used by the government to collect revenue from property transactions. It helps fund public services and infrastructure by taxing the transfer of valuable assets, such as real estate. The tax also ensures that property transfers are recorded officially, creating transparency and legal clarity in the real estate market.
Are residential and investment property transfer taxes the same?
No, the transfer tax for residential and investment properties is different. If you buy an existing residential property, you must pay a 2% transfer tax. Investors pay a property transfer tax of 10.4%.
It is expected that in 2026, the property transfer tax will decrease from 10.4% to 8%.
There are several exemptions that allow first-time buyers to benefit from a reduced or waived transfer tax.
Transfer tax exemption for first-time buyers
The transfer tax exemption for first-time buyers was introduced on 1 January 2021. Since then, the Dutch government has gradually increased the property value threshold, making it easier for young buyers to qualify for mortgages.
In practice, first-time homebuyers aged 18 to 35 can benefit from this exemption when purchasing a home.
For 2025, the exemption applies to properties with a value of less than €510,000.
For 2026, the threshold will increase to €555,000.
If the purchase price is below this limit, eligible buyers are exempt from paying any transfer tax. This policy is designed to support and encourage young people to enter the housing market by reducing their upfront costs.
How much is the transfer tax in the Netherlands?
For example, if you and your partner are both under 35 and buying a property in the Netherlands worth €490,000, you qualify for the first-time buyer exemption. This means you don’t pay the 2% transfer tax, saving €9,800 in closing costs.
If you and your partner are both over 35 years old and you buy a property for €490,000, you will need to pay the 2% transfer tax.
If one of you is 36 and the other is 33, only the portion of the property purchased by the partner under 35 is exempt from the transfer tax. The partner over 35 will pay 2% on their share, while the younger partner pays 0%.
Transfer tax for property investors
Property investors or residents planning to buy a second home—such as a holiday home, rental property, or any property not intended for their primary residence—are required to pay a transfer tax of 10.4%.
This higher rate was introduced to regulate the real estate market and create more opportunities for first-time buyers to enter the Dutch housing market.
Starting 1 January 2026, the government plans to lower the transfer tax from 10.4% to 8%.
For example, if you are considering buying a rental property valued at €490,000, you can expect to pay a 10.4% transfer tax, which amounts to €32,000 in 2025.
Does transfer tax apply to new-build properties in the Netherlands?
No, transfer tax does not apply to new-build properties, because the home has never been owned or transferred before. One of the advantages of a new build property is that there's no transfer tax for potential buyers. You save a lot on closing fees. For more information, please don't hesitate to contact our mortgage advisors.
Transfer tax examples 2026
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