Loans

Overdrachtsbelasting (Transfer Tax)

Last updated: July 2026 Reviewed & verified by Galvin Mendonca

Definition

A tax paid when purchasing real estate in the Netherlands, set at 2% for primary residence and 10.4% otherwise.

Key Takeaways

  • Transfer tax is paid by the buyer when purchasing Dutch real estate.
  • 2026 rates: 0% (first-time buyers age 18–35, up to €555,000), 2% (primary residence), 8% (second homes).
  • First-time buyer exemption can only be used once; property must be your primary residence.
  • Tax must be paid within 8 weeks of purchase; calculated on price or market value (whichever is higher).

Detailed Explanation

Overdrachtsbelasting (transfer tax) is a one-time tax paid by the buyer when purchasing real estate in the Netherlands. The tax is calculated on the purchase price or the property's market value, whichever is higher, and must be paid within 8 weeks of the purchase.

For 2026, the transfer tax rates are: 0% for first-time buyers aged 18–35 on properties up to €555,000 (called startersvrijstelling); 2% for primary residences; 8% for second homes and rental properties (reduced from 10.4% in 2025); and 10.4% for commercial properties and land. The first-time buyer exemption can only be used once and requires the buyer to occupy the property as their primary residence. If you sell within six months, you may lose the exemption and have to repay the tax.

Real-World Example If Sophie (age 32) buys her first home for €450,000 in 2026, she qualifies for the 0% transfer tax exemption, saving €9,000. If Mark (age 40) buys a €450,000 primary residence, he pays 2% transfer tax = €9,000. If Anna buys a €450,000 second home as investment property, she pays 8% = €36,000 in transfer tax.

Disclaimer: Definitions and explanations on this glossary page are provided strictly for general educational and informational purposes. They do not constitute formal financial, investment, legal, or tax advice. Financial regulations, caps, and limits change frequently. Always consult a qualified professional before making any financial decisions.
Advertisement