The government intends to make it easier for first-time buyers and private individuals to buy their own home with effect from 1 January 2021. The changes to the rates of stamp duty are expected to be announced tomorrow on Prinsjesdag.
For the bill tabled on Prinsjesdag 2020, please see our memorandum Transfer tax rates.
Current arrangements
The rate of transfer tax is currently:
- 2% for dwellings and associated outbuildings, such as a garage.
- 6% for all other immovable property, such as commercial buildings.
When purchasing a property, the rate charged is not affected by who buys the property or whether they resell it.[1] Nor is any distinction made as to whether the property is occupied by the owner or let out.
Expected changes
The Government intends to introduce the following changes to transfer tax with effect from 2021:
- A reduction in the current 2% rate to 0% for first-time buyers aged between 18 and 35 who are purchasing a property for their own use.
- Increase in the rate to 8% for (private) investors who purchase a property with a view to letting it out.
As the transfer tax on non-residential properties is being increased, the government will receive additional tax revenue, which it intends to use to fund the measures set out in the Climate Agreement. The business community will contribute towards reducing CO2 to reduce it in the coming years.
[1] If a property is resold within six months, an exemption from stamp duty applies.