Real estate transfer tax is levied on the transfer of the legal or beneficial ownership of real estate in the Netherlands. The tax is levied from the acquirer. The term real estate, includes shares in certain real estate entities. The taxable basis is the higher of the fair market value or the sales price of the real estate. The tax rate is 6 percent.
Many exemptions are available. These include exemptions for the contribution of an enterprise to a partnership, the dissolving of partnerships, asset mergers, legal mergers, legal demergers and internal reorganisations. In most cases, there is a recapture period of three years during which the shares or the enterprise acquired must be held or continued. In a number of cases, the disposal of shares or the enterprise within this period does not trigger the recapture, if this disposal itself would have qualified for an exemption.
The creation of a mortgage or pledge no real estate is not subject to real estate transfer tax.
Finally, under certain conditions, the disposal of real estate within 6 months after the acquisition, only leads to a tax charge on the difference between the final and the preceding sales price.