Outline of property transfer tax  

Outline of property transfer tax

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Dutch version

Amendment of concurrence exemption in share transactions

It is currently still possible in certain cases to transfer new property through a share transaction without levying of VAT and transfer tax. The legislator believes this to be undesirable. The 2024 Tax Plan therefore contains a proposal to block the application of the concurrence exemption when acquiring shares in a property entity as of 1 January 2025. The proposal aims to combat the VAT advantage in property share transactions that arise in particular when the property has been or will be used for VAT-exempt purposes (e.g. residential rental, rental to educational institutions, pension funds, insurance companies and healthcare providers). In such situations, the value of the property will be subject to less non-deductible VAT than in the case of a direct supply of that property. The scheme will not cover cases where the underlying property is used for at least 90% VAT-taxed activities for at least two years after acquisition of the shares. This means that the concurrence exemption will continue to apply to an indirect acquisition of such property through a share transaction. Other acquisitions will be subject to a reduced rate of 4%, instead of the general rate of 10.4%. This means that a new transfer tax rate will be introduced in addition to the existing rates of 2% and 10.4%. There will also be a transitional arrangement for projects where at least a letter of intent has been signed before the filing date of the bill and where the shares are acquired no later than 1 January 2030.