Listed buildings exempt from transfer tax
Things are really starting to look up for the property market in the Netherlands, with the recent introduction of a tax exemption on purchasing a historical building. It's a move on behalf of the Court of the Hague that may just help you make yours.
Court ruling to save 6%
Following a recent ruling by the Court of the Hague, private owners in the Netherlands will be exempt from paying *transfer tax when purchasing a historical building. This means a significant 6% saving on the purchase price of a listed dwelling.
Formerly, only historical buildings that had acquired listed status were exonerated from paying transfer tax. The tax exemption now extends to private individuals and entities, which, from May 1 2009, will be retroactive. Furthermore property acquired before listed status was granted may also be exempt from transfer tax, amounting to massive savings for current owners of these buildings.
Building on the future
The decision to exempt individuals from transfer tax can be considered a legal triumph; Robert Bosma, tax consultant and financial advisor from Finsens BV is one such advocate: “This ruling can result in significant savings for quite a number of individuals buying in the centre or south of Amsterdam, since many homes in these areas are listed buildings. Furthermore, maintenance costs on listed buildings are also tax deductible.”
*Transfer tax is levied on the acquisition of real estate in the Netherlands at 6% of the market value of the property.
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