2023 Tax Plan – Outline of landlord levy and property transfer tax | Deloitte

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2023 Tax Plan – Outline of landlord levy and property transfer tax

2023 Tax Plan - Budget Day (Prinsjesdag)

The following lists the measures proposed in the 2023 Tax Plan in respect of the landlord levy and property transfer tax

22 September 2022

Outline of landlord levy and property transfer tax measures

Back to outline 2023 Tax Plan

Dutch version

Increase in general transfer tax rate

The government proposes to increase the general transfer tax rate from 8% to 10.4%, effective from 1 January 2023. A key objective of the increase is to strengthen the position of first-time buyers in the owner-occupied housing market in relation to investors. With the reduced rate of 2% continuing to apply to the purchase of a home intended for one’s own use, the increase in the general rate is expected to particularly affect investors in residential and commercial properties. The aim is to make it less attractive for investors to purchase homes, so more of the housing stock will be available for first-time buyers and those moving up the housing ladder. Most of the measures affect commercial real estate though and this is acknowledged to have a distortive effect.

Webcast Tax Plan

Corina van Lindonk, Aart Nolten and Eddo Hageman discussed Tax Plan 2023.

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Abolition of landlord levy

Earlier on, it was announced that the landlord levy would be abolished in 2023, to be replaced by binding performance agreements with housing associations. The goal is to use the resulting investment capacity for building so-called flex homes and affordable rented homes, for renovation and sustainability, and for the quality of life in neighbourhoods. However, the bill providing for abolition is not (yet) part of the 2023 Tax Plan package.

Reduction and abolition of gift tax exemption for the beneficiary's own home

In 2022, the gift tax exemption for a beneficiary's own home was EUR 106,671 for gifts made to people aged between 18 and 40 in connection with, among other things, the purchase and renovation of their own home. The aim was to reduce home acquisition debt and lower the percentage of underwater mortgages. Following an evaluation on the effectiveness of the scheme, the government now proposes to abolish the gift tax exemption for a beneficiary's own home from 1 January 2024.

Formally, the gift tax exemption for a beneficiary's own home will not be abolished before 2023, but the amount of the exemption will be reduced as of 1 January 2023 to the amount of the one-off increased exemption for gifts from parents to children (2023: EUR 28,947). As a result, the gift tax exemption for a beneficiary's own home is expected not be used from 2023 either, as the general exemption for gifts achieves the same result without being subject to spending conditions.

The gift may currently be spread over three years. The proposed measures will limit the possibility to spread the gift in the transitional years. If part of the maximum exemption is not used for a gift in 2022, it may still be used in 2023, but no longer in 2024. However, a gift for a beneficiary’s own home received for the first time in 2022 may still be spent until 31 December 2024 at the latest.

Broad approach to arrangements and negatively assessed tax schemes

In the coming years, the government aims to tackle remarkable tax arrangements and improper use of tax schemes within all tax types. One example is the standard designation of rented real estate as investment assets in the business succession regime (bedrijfsopvolgingsregeling, BOR) in gift and inheritance tax and the transfer facility (doorschuifregeling, DSR) in income tax. In addition, the government focuses on abolishing or scaling down inefficient and ineffective tax schemes.

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