In 2026, Dutch transfer tax is 8% for a dwelling the buyer will not use as a main residence. Offices and other non-residential property are taxed at 10.4%. The category follows the asset acquired at completion, not its planned future use. The difference changes the cash needed to complete the purchase.
Why this matters
Transfer tax is due at acquisition. That cash cannot then fund construction, interest, payroll, or repairs. If the purchase model assumes 8% but 10.4% applies, the buyer needs more equity. The bid and construction reserve may need to change. A conversion permit and apartment drawings support the plan. They do not decide the tax category. Layout, facilities, condition, and use at completion still matter. Check the tax base separately. The purchase price is its starting point.
Example
A buyer acquires a former office villa for €1.5 million. Transfer tax at 8% is €120,000. At 10.4%, it is €156,000. The difference is €36,000. That €36,000 is due at completion. It could otherwise pay professional fees, bathrooms, interest, or part of the construction contingency. Put the tax category in the acquisition model before signing the contract.
XTROVERSO tips
- Record the building being acquired. Keep current floor plans, photographs, facility records, use records, and alteration history in the deal file. Do not rely on the sales brochure alone.
- Show the rate and tax base. State the assumed transfer-tax rate and tax base in the purchase model. Name the adviser or manager responsible for checking both.
- Prepare one completion-cost sheet. List the purchase price, transfer tax, valuation, notary, financing fees, interest, early maintenance, and contingency.
- Separate current and future value. Keep the building's current value separate from permit value, conversion value, and expected sale or rental value.
- Align every deal document. The contract, valuation, financing request, tax file, and internal approval should describe the same building and its current condition.
- Treat the 2027 rate as a scenario. The proposed 7% rate concerns qualifying dwellings not used as a main residence. It still needs parliamentary approval and does not apply to business premises.
Need a second check on your property assumptions and acquisition budget? We can put the facts, tax rate, and completion cash in one file
The data, sourcing, and analysis behind this article were conducted by Paolo Maria Pavan. AI was not used to identify sources, build the factual basis, or produce the analytical judgment contained here. AI was used only as a drafting aid. The final English text was personally reviewed, edited, and approved by Paolo Maria Pavan before publication.
