Taxation of profit made on the sale of a property in the Netherlands
This article will be of use if:
- you live in the Netherlands, and
- you're going to sell a property located in a Dutch city (Amsterdam, The Hague, Rotterdam, Utrecht, Eindhoven, etc.), and
- you could use some information on the tax issues when you are property in the Netherlands
This post consists of the following topics:
- No capital gain tax in the Netherlands
- No tax on profit when selling property in the Netherlands
- Transfer tax paid by the buyer
- Exceptions to the rule
For your information:I am a 27-year-old Dutchman myself with a lot of expat friends.
You might come across some medium structured sentences. Let's say, my knowledge on the Dutch real estate market is far better than my English (feel free to send an e-mail to info@mijnverkoopmakelaar.nl if the error is too big to ignore).
I share articles related to the Dutch real estate market, because I hate that expats are being exploited by my fellow country men, especially in the housing market.
Further down this page, you will find some information on what it is we do (Mijn Verkoopmakelaar) and how that could be of use during this selling process.
Let's get started.
1. No capital gain tax in the Netherlands
Let's start with a general view on taxation in the Netherlands. Here, the system of taxation is different from in most other countries
Most jurisdiction tax the capital gains of their citizens. This is different in the Netherlands. Instead, your ownership is taxed, not the returns you make them.
The Dutch fiscal system works with 3 different 'Boxes' (baskets). For this topic, only two boxes are relevant: Box 1 and Box 2.
Box 1 property as a residence
This is how your property is taxed, when you live there yourself
Box 3 property as an investment
The tax authorities will use an assumed, fictional return on investment, and that they tax their citizens accordingly. I won't dig too deep in to this, but it works like this:
- The first 50,650 euros in property value is free
- 50,650 - 101,300 euros, tax rate: 0.56%
- 11,300 - 1,013,000 euros: 1,35%
- > 1,013,000 euro: 1,.71%
2. No tax on profit when selling property in the Netherlands
When you sell a property in the Netherlands with a profit, this profit will not be taxed.
An example: You have bought a property in Amsterdam 4 years ago for €300,000. You sell this house now for €380,000. This results in an €80,000 profit. All of this money is yours to keep.
Tax treaties could prevent other countries (your home country) to tax the profit you have made on your sale of a property located in the Netherlands. Whether your country exempts or deducts Dutch taxes paid, depends on your specific country and situation. Seek professional advice, if you want to know what would be wise in your situation.
3. Transfer tax paid by the buyer
The acquisition of a property is not totally free of tax. The buyer needs to pay transfer tax. The transfer tax rate on dwellings is 2%. The transfer rate on other real estate is 6%.
If you buy a property as an investment (Box 3), the transfer tax is 8%.
4. Exceptions to the rule
When you are not operating as an individual, but through a company or other entity, different rules apply. In this case, it is strongly advised to get professional support on this subject.
More on selling property in the Netherlands, here:
Selecting a local estate agent
Hopefully, this was of any help.
If you are planning to sell your property located in the Netherlands, we can advise you on what estate agents won't charge you those exploitative expat-fees, but local tariffs.
Follow the steps in our tool and find a broker in your area:
- How it works
How it works:
The agents in the area will study your property and leave you a proposal. They know they are in competition with other agents, so they will makes sure their fee is competitive.
We keep track of their performance, so that you are ensured of a good outcome. And will check-in with you.
Long story short:
- You getmultiple offersof agents in your area
- We havecurated the agentsbased on their previous results
- Using the service isfreefor you (agents share a small part their fee)
- We keep youcontact details shielded, so you don't get annoying calls
- Fill inyour postal code below
If you experience any issues (language for example) using the platform, feel free to contact us! We are here to help you in English with a Dutch accent ;).
- Verified
- Local
- Best results
- How it works
Find and compare the best real estate agents
FAQ about tax on selling property in the Netherlands
Do you have to pay capital gain taxes on the property sale in the Netherlands?
No. You don't have to pay capital gain tax on the selling of your property.
Do you have to pay extra tax on the profit you make on the sale of your property in the Netherlands?
No. You do not have to pay tax on the profit you make on the sale of your property in the Netherlands.
What tax do need to be paid on the sale of property in the Netherlands?
The acquisition of a property is not totally free of tax. In the Netherland the buyer needs to pay transfer tax. The transfer tax rate on dwellings is 2%. The transfer rate on other real estate is 6%.
I appreciate the opportunity to share my insights on the taxation of property sales in the Netherlands, drawing upon my extensive knowledge of the Dutch real estate market. As a 27-year-old Dutchman with a significant number of expat friends, my interest in providing accurate and reliable information stems from a genuine concern for the potential exploitation of expatriates in the housing market.
Now, let's delve into the key concepts covered in the provided article:
-
No Capital Gain Tax in the Netherlands:
- In the Netherlands, the capital gains of citizens are not taxed. Instead, ownership is taxed, with a focus on two tax boxes: Box 1 and Box 2.
- Box 1 applies when the property is used as a residence, and Box 3 applies when the property is treated as an investment.
- The taxation in Box 3 involves an assumed, fictional return on investment, with varying tax rates based on property value ranges.
-
No Tax on Profit When Selling Property in the Netherlands:
- Profits made from selling a property in the Netherlands are not subject to taxation.
- The example provided illustrates that if you bought a property for €300,000 and sell it for €380,000, the entire €80,000 profit is yours to keep.
- Tax treaties with other countries may affect whether your home country taxes the profit from the sale of a property in the Netherlands.
-
Transfer Tax Paid by the Buyer:
- While there is no capital gain tax on the seller, the buyer is required to pay transfer tax upon acquiring the property.
- The transfer tax rate on dwellings is 2%, and for other real estate, it is 6%. If the property is bought as an investment (Box 3), the transfer tax is 8%.
-
Exceptions to the Rule:
- When dealing with the sale of property through a company or other entities, different rules apply. Professional support is recommended in such cases.
-
Additional Information:
- The article provides additional information on selling property in the Netherlands, including guides on selecting estate agents, the costs associated with selling a house, and step-by-step guides on the selling process.
- The article encourages individuals planning to sell their property in the Netherlands to seek advice on estate agents who won't charge exploitative expat fees.
For those considering selling their property in the Netherlands, the provided information serves as a valuable guide. If further assistance is needed, the article directs readers to a tool to find local estate agents, emphasizing fair competition and transparent fee structures. I hope this summary proves helpful, and if any language issues arise, feel free to reach out for assistance in English with a Dutch accent.
