In real estate transformation, parties must consider turnover tax and/or transfer tax. The optimal choice depends on various factors such as ownership status of the property, purpose of transformation, and the extent of renovations. The general transfer tax rate is 10.4%, but can be as low as 2% or even 0%. The sales tax rate is 21%. The main rule is that transfer tax is required when purchasing real estate, with exceptions for delivery of a building site or new real estate. The preference for either tax depends on whether the property is being transformed for sale, rent, or self-occupancy. For rental or self-occupancy, transfer tax is preferred, while for office buildings, VAT may be preferable if tenants can deduct it.
Source Taxence
Latest Posts in "Netherlands"
- Court Decision on Tax Rate for Art Products: Classification and Maker Status Dispute
- Tax Deduction Dispute: Business Use of Apartment and VAT Reclaim Rights in Court Ruling
- Peppol E-Invoicing in the Netherlands: Digital Transformation and Future Integration Strategies
- Guidelines for New VAT Rules on Mixed-Use Properties Effective from July 2025
- 7 Tips to Speed Up VAT Return Processing and Minimize Delays
