Measures for real estate

Homeownership scheme in the event of death
The home equity reserve (EWR) will be restored to the pre-2013 situation. An EWR will again be linked to the person of the taxpayer and will automatically cease in the event of death. This means an EWR can never be transferred to another taxpayer. This also applies for the repayment balance. These changes are meant to not unduly confront a surviving partner with the homeownership history of the deceased tax partner.

Homeownership scheme and partnership
Amendments are proposed in applying the additional loan scheme and the repayment balance, in order to make the schemes fairer in partner situations. This avoids unforeseen limitations on interest relief, which could also have been avoided by people. For example, by having different antenuptial agreement clauses or by not concluding a cohabitation contract. A previous policy decision (including the additional loan scheme for the joint purchase and financing of an own home by tax partners, one or both of whom have a homeownership history) has now been laid down by law. 

Housing allowance and rent limit exceedance
For rent – on the basis of which the rent subsidy is calculated – exceeding the maximum rent limit, in principle, there is no entitlement to a housing allowance. An exception to this rule is the acquired right. The conditions for this exception will be alleviated. It is proposed to discontinue the requirement that entitlement to the housing allowance had to exist in the month before the rent limit exceedance. This measure is intended to prevent citizens from permanently losing their housing allowance if, in the previous year, they were temporarily not entitled to housing allowance (e.g. due to a higher income) due to a rent limit exceedance.

No transfer tax in the event of a sale-regulating clause
This proposal stipulates that, under certain conditions, an exemption of transfer tax applies for the repurchase of a natural person's residence. The exemption applies if, by extension, it provides for a sale-regulating clause, which includes the following. A residence is sold to an occupant with a buyer’s discount by a seller offering residences for sale. If the seller offering the residence later repurchases it from the occupant in accordance with the clause, it is not desirable to tax the acquisition of the residence at the general transfer tax rate (currently 8%). If the seller offering the residence then resells the residence to a first-time buyer, the seller offering the residence may not pass on the transfer tax costs. This would discourage sellers from selling to first-time buyers. 

Transfer tax rate and unforeseen circumstances
If a natural person acquires a residence that will serve as their main residence, they only have to pay 2% (or sometimes no) transfer tax. When assessing this main residence criterion, account can already be kept of unforeseen circumstances that may arise after acquisition, such as death or donation. This clause has now been eased further. One may also, based on a statement, take into account unforeseen circumstances arising after the purchase agreement has been concluded, but prior to delivery. It is important that the acquirer had the intention – before the moment of the unforeseen circumstance – to use the residence as their main residence, but because of this circumstance they were no longer able to do so. 

Amendment of anti-abuse rule of the Legal Transactions (Taxation) Act
As of 1 April 2021, the exemption for first-time buyers from transfer tax applies for residences valued up to €400,000 (the property value threshold). To prevent that residences are acquired split in order to remain below such property value threshold, there is an anti-abuse rule. The purpose of this provision in the Legal Transactions (Taxation) Act (Wet op belastingen van rechtsverkeer, WBRV) is to remove the benefit of the exemption for first-time buyers from transfer tax if the total value of the acquisition exceeds €400,000. This has been amended to eliminate several ambiguities. 

• Tip! The anti-abuse rule will not be applied if, on first acquisition, the property value threshold had not applied as yet, and neither for acquisitions pursuant to inheritance law or matrimonial property law by the person who applied the exemption for first-time buyers from transfer tax.
  

Simplification of the transfer tax return process
In 2022, the contents of the transfer tax return form will be expanded. From then on, the civil-law notary must provide more details via the tax return form (e.g. the citizen service number (BSN) and the exemption which is being invoked). Some details already submitted to the Tax and Customs Administration via the tax return form will no longer have to be passed on separately by the civil-law notary to the Tax and Customs Administration. This applies, for example, to the written statement made by a private buyer of a residence where the exemption for first-time buyers from transfer tax or the reduced rate is applied.

Landlord levy adjustments
The rate of the landlord levy will be reduced to 0.485%. Moreover, there are levy reductions of landlord levies. An amount has been reserved for this purpose in the National budget. These levy reductions can be reduced to zero as at the first day of each quarter if the budgeted amount has been exceeded. The legislative proposal envisages that the levy reductions can in future be reduced to zero as at the first day of each month.

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