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TAX ADVICE: Limits starters exemption from transfer tax
On Budget Day, the cabinet announced that starters between the ages of 18 and 35 will no longer have to pay transfer tax from 1 January 2021 when buying their first home. The cabinet has now announced that the exemption only applies to homes with a value up to € 400,000.
Limitation of the starter’s exemption from transfer tax
In a letter to the House of Representatives, Minister Ollongren of the Interior announced that the start-up exemption will be limited to a home value of € 400,000. This value limit is intended to ensure that the exemption is only granted to young starters who need a helping hand the most.
The change means that first-time buyers who buy a home with a value greater than $ 400,000, like all other home buyers, will have to pay 2% transfer tax. Please note, this only applies to homes that serve as “main residence”. If the value limit is exceeded, buyers are liable to transfer tax on the entire value of the home, and not only on the amount above the value limit.
The change will take effect from April 1, 2021. This means that starters can still benefit from the exemption from January 1, 2021 to March 31, 2021, regardless of the purchase value of a home. The cabinet indexes the limit of € 400,000 annually.
Whould you like to Know more?
Avoid nasty surprises and get good advice about this. Our tax advisers keep a close eye on developments. Do you have any questions or would you like more information? Please contact chaterdinance, via telephone number 070-7522837 or e-mail info@chaterfinance.nl