Cabinet wants to tighten transfer tax exemptions

The government wants to tighten the conditions for the land parcel exchange exemption and the property division exemption in the transfer tax. This is evident from two online consultations launched by the Ministry of Finance.

Anyone wishing to exchange a plot of land solely for the purpose of obtaining a tax benefit can take advantage of the land transfer tax exemption. This exemption allows homes and other buildings not used for agricultural purposes, in particular, to be unintentionally exempt from transfer tax. The government considers this undesirable and is therefore introducing new rules to prevent it. The consultation deadline is April 30th.

Split exemption
Furthermore, it is possible to apply the transfer tax exemption more broadly than intended. Transfer tax is due for a direct transfer. However, by combining transactions, transfer tax can be avoided when transferring real estate. The government considers this undesirable as well. New rules should address this. This consultation ends on May 6.