Exploration of tax arrangements within transfer tax

Is further research needed into the exemptions and other tax arrangements within the transfer tax? Yes, according to a study prepared by the State Secretary of Finance. Therefore, 20 exemptions, the reduced rate for residential properties, and the rate differentiation in the transfer tax will be evaluated in the coming years.

Since 2011, a reduced rate has applied to residential properties. And since 2021, different rates have applied to different target groups when acquiring a home. For example, buyers under 35 pay no transfer tax – provided the property costs no more than €440,000. This is called the first-time buyer exemption. Those who are not first-time buyers but are buying a home to live in themselves pay 2 percent transfer tax. In other cases, 10.4 percent is due.

Tariff differentiation
According to the study, this so-called rate differentiation, including the exemption for first-time buyers, will be evaluated in 2024. The next evaluation is scheduled for 2025: exemptions from transfer tax for entrepreneurs. Then, in 2026, exemptions for nature and agriculture will be examined, and in 2027, exemptions of a technical or notarial nature.