Anyone who acquires (notional) property pays transfer tax. Meanwhile, we have to keep 5 rates in the poll for that.
Regular rate
The regular rate is 10,4%. Transfer tax is calculated on the purchase price of the property or the fair market value, whichever is higher.
When shares in a real estate entity are acquired, they are notionally considered real estate. The transfer tax is then calculated on the value of the real estate embodied in the shares (without taking into account any debts).
Reduced residential rates
A reduced rate of 2%, if a number of conditions are met:
- the acquisition concerns a dwelling (including appurtenances);
- the transferee is a natural person;
- The transferee will use the property as his main residence.
One-time start-up exemption (rate 0%) can be used. To do so, the following conditions must be met:
- the transferee has not previously applied the start-up exemption;
- he or she is older than 18 but not yet 35 at the time of acquisition;
- the property has a value of no more than €525,000 (2024: €510,000).
With effect from 1 January 2026, the rate for homes that do not meet the conditions for the starter exemption and the rate of 2% will be reduced from 10.4% to 8%.
Qualifying equity interest
Where, from 1 January 2025, the shares in a real estate entity are acquired and the assets of that entity include real estate, which qualifies as new real estate for VAT purposes, the value of that real estate is taxed at a rate of 4%.
If these new properties are used for VAT-taxed activities for 2 years for 90% or more, the concurrency exemption (rate 0%).
Exemptions
The transfer tax has various exemptions. Already mentioned are the starter's exemption for houses and the concurrence exemption when acquiring new real estate. Other exemptions include the following (all these exemptions are subject to the conditions attached to that specific exemption):
- business succession exemption;
- contribution exemptions (contribution to a VOF or BV);
- Exemption by virtue of division (VOF or return from BV);
- Exemption when a community is divided between cohabitants (40/60);
- Exemptions in the case of merger, demerger and internal reorganisation.
A number of acquisitions are not considered taxable acquisitions for the purposes of transfer tax. These include acquisitions pursuant to:
- estate mixing, inheritance law or prescription;
- division of a matrimonial community or estate, in which the transferee was entitled by universal title.