Finance clarifies new transfer tax rules

The explanations for the starter exemption and the reduced rate are available on the Tax and Customs Administration website and can be downloaded. If parents buy a home for a child and do not intend to use it as their permanent primary residence, the 8 percent rate applies. State Secretary of Finance Hans Vijlbrief provided these and other answers to the House of Representatives' Finance Committee during the debate on the Transfer Tax Differentiation Act bill.

This bill was submitted on Budget Day and raises several questions . In the Memorandum in response to the Report, the State Secretary answers various questions from notarial practice. Many answers concern the application of the new statutory regulation. For example, the principal residence criterion for the first-time buyer exemption and the reduced rate. Other answers concern the bill's implementation. For example, the use of declarations for the first-time buyer exemption and the reduced rate.

Declaration process
The Royal Dutch Association of Civil-Law Notaries (KNB) is in discussions with the Ministry of Finance and the Tax and Customs Administration regarding the implementation of the bill. This primarily concerns the design of the transfer tax filing process. This requires adjustments to filing systems at notaries and the Tax and Customs Administration. The KNB emphasizes the importance of an efficient filing process with minimal administrative burden for the notarial profession. The KNB is also coordinating with notarial software vendors regarding the filing process.