The Tax Transfer Options For You

Transfer tax is a thorn in the side of many people. This tax is paid when a home or business premises are transferred to another. There are two rates in 2016: 2% for the transfer of a home and 6% for the transfer of other immovable property, such as business premises. Is transfer tax deductible? No. This is therefore an annoying tax for the buyer: transfer tax increases the purchase price and is not deductible.

Exemption from transfer tax

You are wondering: are there no exemptions for transfer tax? In a number of cases you can rely on an exemption. In most cases, conditions must be met. Examples of situations in which you may be able to invoke an exemption are:

  • business transfer to family members
  • contribution of a company into a company (not a limited liability company)
  • conversion of a company (for example a sole proprietorship or a general partnership) into a private limited company or limited company
  • in the division of a community between cohabitants
  • In the event of a merger, split or internal reorganization of a company.

Restriction of transfer tax

In addition to exemptions, transfer tax can also be limited in a number of situations. In that case, the terms of purchase and resale of a property are relevant.

Did you buy a home or business premises in the period 1 September 2012 to 31 December 2019 and resell it within 36 months? In that case, transfer tax only needs to be paid on the added value realized in this period.

Have you bought a home or business premises that are being resold after 31 December 2019? Then transfer tax only needs to be paid on the realized capital gain if the resale takes place within six months. Go for the taxes for small business also there.

Transfer tax not deductible

In short, transfer tax is not deductible, but you have a number of options for making use of an exemption from transfer tax or a restriction on transfer tax. It is important to remain alert to this when buying or selling a property.

Everyone has an interest in the proper supply and discharge of water in rivers, streams and ditches and in safe dikes. For this you pay taxes for the work. We levy these taxes on all owners and residents. 

How do we calculate the tax?

The rate of the tax depends on the category in which the land falls. There is one tariff for public paved roads, one tariff for nature areas and one tariff for the rest. The rate is an amount per hectare and one hectare is 10,000m2. We get the data about the land from the Land Registry. You pay tax if you owned the piece of land on 1 January.

What happens if you sell the land?

You only pay tax on land that you owned on January 1. You are and will continue to owe this tax, but you can make arrangements with the new owners to settle this.

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