Transfer tax (overdrachtsbelasting) is a tax you pay when purchasing a property in the Netherlands. It is calculated as a percentage of the purchase price and forms part of the standard buyer’s costs. You pay transfer tax when ownership is officially transferred at the notary. This is the moment the property is legally registered in your name and you become the owner.
Transfer tax in the Netherlands
Buying a home in the Netherlands comes with additional costs, and transfer tax is one of the most important ones to understand. The amount you pay depends on your situation and how you will use the property.
A standard cost when buying property
What is transfer tax?
How the tax rate depends on your situation
Current transfer tax rates in the Netherlands
The transfer tax rate depends on how you will use the property at the time of purchase:
- 0%: If you qualify for the first-time buyer exemption (available once for buyers aged 18–35 buying a home to live in, up to €555,000 in 2026).
- 2%: If you buy a home that you will use as your main residence.
- 8%: If you buy a property you will not use as your main residence (such as a second home or buy-to-let property).
- 10.4%: For non-residential real estate, such as commercial property.
Which rate applies depends on your personal situation and intended use of the property. This is assessed at the time of transfer.
How we support expats in buying a home
Client experiences
A practical example based on purchase price
How much transfer tax will you pay?
The amount of transfer tax depends on the purchase price and applicable rate. For a property of €690,000:
- Main residence (2%) → €13,800
- Second home or buy-to-let (8%) → €55,200
- Non-residential (10.4%) → €71,760
The difference between rates can be substantial. Understanding which rate applies helps you plan your total budget more accurately.
What you need to pay from your own funds
Can you finance transfer tax?
In most cases, transfer tax cannot be included in your mortgage. This means you need to pay it using your own funds.
Transfer tax is part of the buyer’s costs (kosten koper), which also include expenses such as notary fees and valuation costs. Because you can typically borrow up to 100% of the property value, these additional costs must be covered separately.
Avoid unexpected costs when buying a home
Common mistakes expats make
Small misunderstandings about transfer tax can lead to significant unexpected costs. These are common pitfalls:
Assuming you qualify for the 0% exemption
Not everyone is eligible. You must meet all conditions, including age, property value and using the home as your main residence.
Misunderstanding property use
Buying a property as an investment or second home results in a higher tax rate than a property you will live in yourself.
Overlooking the impact of joint buyers
If you buy together, each buyer’s situation matters. If one person does not meet the conditions for a lower rate or exemption, this may affect the overall outcome.
Underestimating required savings
Transfer tax cannot usually be financed and must be paid from your own funds, along with other buyer’s costs.
Understanding these points in advance helps you avoid surprises and make better-informed decisions.
