Real estate share transactions bill amended

The cabinet is amending the bill aimed at eliminating an undesirable tax-saving scheme for real estate transactions. This is in response to the online consultation and a meeting with the real estate sector.

With this bill, the government aims to eliminate an undesirable tax-saving scheme. A share transaction avoids the seller having to pay VAT and the buyer having to pay transfer tax (OVB) when acquiring new real estate.

Overkill
The real estate sector has indicated that the bill contains excessive tax (overkill) and does not provide transitional provisions. In a letter to the House of Representatives , State Secretary for Finance Marnix van Rij writes that the sector's input warrants amending the bill. The bill aims to reduce the uneven playing field and combat an undesirable tax-saving scheme. This objective is better achieved by mitigating overkill and establishing transitional provisions.

Transitional law
The government proposes, among other things, that the exception to the exemption intended to prevent the overlap of VAT and transfer tax (OVB) will not always apply. Furthermore, the government will include transitional provisions in the bill to respect ongoing projects. This will be based on the date of the bill's submission. The details of the bill are currently being worked out. The bill will be submitted on Budget Day. The new regulations are intended to take effect on January 1, 2025.