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Upon the acquisition of commercial property (office, warehouse, retail), the buyer pays 10.4% transfer tax (2024) — on the higher of the purchase price and market value. For residential properties, the rate is 2% or 0% (for first-time buyers), but commercial real estate is subject to the higher rate. Exceptions: VAT-taxed supply (within 2 years of initial use), business transfer subject to conditions, or exemption for transfers between affiliated BVs. Below: rate, exemptions, and how Karim's holding company acquires a business property without additional taxation.
The short answer
- 2024 rate: 10.4% for commercial real estate (office, warehouse, retail).
- Taxable base: highest of purchase price or market value.
- Who pays: the buyer.
- VAT exemption: new construction (< 2 years old) supplied with VAT — no transfer tax.
- Group exemption: transfers within ≥ 95% affiliated companies are exempt.
When is transfer tax payable?
Upon acquisition of Dutch real estate in a legal sense:
- Purchase, exchange, donation, contribution to a private limited company.
- Establishment of limited rights (leasehold, building rights, usufruct).
- Acquisition of economic ownership (long-term hire purchase, leasing).
- Shares in real estate companies (“real estate BV”) subject to conditions.
Tax is invoiced via the notary upon transfer (deed of transfer) and subsequently remitted to the Tax and Customs Administration.
Rates 2024-2025
- Commercial real estate (office, industrial property, warehouse, retail): 10.4%.
- Home (self-occupied): 2%.
- First-time homebuyers (< 35 years, primary residence, < € 510,000 in 2024): 0%.
- Residential investment property (rental, second home): 10.4%.
The high rate for commercial and rental properties is a deliberate choice to favor primary residences and owner-occupied homes.
VAT versus transfer tax
For new construction within 2 years of first occupancy: delivery is subject to VAT (21%) and exempt from transfer tax. Thereafter: VAT-exempt and transfer tax of 10.4%.
Sometimes smart: opting for a VAT-taxed supply (provided both parties are entitled to deduct VAT). In that case, there is no 10.4% transfer tax, but instead 21% VAT — which is deductible for the buyer. The net effect can be advantageous for office and retail properties in a VAT-registered business.
Important exemptions
Group exemption (Art. 15, paragraph 1, sub h)
Transfers within a group (≥ 95% affiliated companies) are exempt. In practice: shifting property from an operating company to a holding company or vice versa — no transfer tax.
Condition: continued retention within the group for at least 3 years (otherwise retroactive revision).
Reorganization exemption
Exemption in the case of a legal merger, demerger, or contribution subject to conditions — provided it is arm's length and not primarily tax-motivated.
Exemption for business transfer (Art. 15, paragraph 1, sub b)
Exemption subject to conditions upon transfer of a business to a child or family member. Specifically for family business transfers.
Cultural heritage
Monuments and cultural heritage buildings: exemption or reduced rate subject to conditions.
Karim buys a business premises
Karim's holding company wants to buy a commercial property for €800,000 — an office from 2010, no longer subject to the VAT transfer regime.
- Real estate transfer tax: 10.4% × € 800,000 = € 83,200.
- Plus notary (€1,500), land registry (€200), optional valuation (€500).
Total acquisition costs in addition to purchase price: €85,000+. Karim's accountant helps think through smart structuring — e.g., group exemption if the property needs to be transferred to an operating company later, or a VAT option for new construction.
Smart planning
- VAT option for commercial property: only for the first delivery within 2 years and for VAT-deductible parties.
- Place property directly in the correct BV: originally place it in the “final destination BV”, instead of transferring it later.
- Applying for the group exemption: often valuable during restructuring.
- Family business: Business Succession route for business transfer can also affect transfer tax.
Honest recommendation
For commercial real estate, transfer tax of 10.4% is a significant expense. For larger transactions (> € 500,000), always seek tax advice in advance: the VAT option, group exemption, or a smart acquisition sequence can save tens of thousands. For family business transfers: combine the Business Succession Relief (BOR) exemption with the transfer tax route. A good notary with real estate experience is essential.
For other topics: which taxes does a BV pay, VAT return and gift tax.
Frequently Asked Questions
10.4% transfer tax in 2024 for commercial real estate (office, warehouse, retail) and rental properties. Owner-occupied primary residence: 2% or 0% (first-time buyers). Levied on the higher of the purchase price and market value.
The buyer. The notary calculates it in the deed of transfer, invoices it to the buyer, and remits it to the Tax Authorities. It is added to the purchase price.
For new construction within 2 years of first use: the supply is subject to VAT (21%) and exempt from transfer tax. Alternatively, opt for a VAT-taxed supply between deductible parties — sometimes more advantageous.
The transfer of real estate between companies affiliated with ≥ 95% is exempt from transfer tax (Art. 15, paragraph 1, sub h). Condition: continued retention within the group for 3 years — otherwise, revision.
Under certain conditions, yes — for shares in a “real estate BV” (asset consisting primarily of real estate), transfer tax may be payable upon the transfer of shares. Prevents tax avoidance via the share route.
In the case of a legal merger, demerger, or contribution, exemption from transfer tax is granted under conditions — provided there is a business background and it is not primarily tax-motivated. Makes restructurings affordable.
For a BV: yes, the transfer tax is capitalized as part of the purchase price of the property and recovered through depreciation over the useful life (usually 30-40 years for commercial real estate).
