Starter exemption used less in 2022

Fewer homebuyers took advantage of the first-time buyers' exemption from transfer tax in 2022. In 2021, 105,000 people applied for this exemption, but in 2022, this number dropped to 65,000. According to Marnix van Rij, State Secretary for Finance, there are several reasons for this.

In his letter to the House of Representatives, Van Rij explains that in the first three months of 2021, there was no threshold for the property value to qualify for the first-time buyer exemption. As of April 2021, that threshold was €400,000. The same threshold applied in 2022, while house prices were higher than in 2021. Furthermore, the number of deeds in which the first-time buyer exemption and/or the 2 percent rate were applied was lower in 2022 than in 2021.

To demand
The starter exemption is only applicable if buyers of a home intend to live there for a longer period of time, are between 18 and 35 years old, and have not previously used the exemption. Furthermore, the property value may not exceed the set threshold. For 2023, the threshold is set at €440,000. If a buyer does not meet these requirements but does live in the property themselves, a 2 percent transfer tax rate applies.