For first-time buyers on the housing market, the so-called starter exemption from transfer tax can be a significant help. This scheme allows young buyers to purchase their first home without having to pay transfer tax, subject to certain conditions. This saves thousands of pounds in additional costs, which lowers the threshold for buying a home.
What is transfer tax?
Anyone who buys a home or other real estate in the Netherlands pays transfer tax. This tax is levied on the transfer of ownership and has different rates. From 2025, there will be three categories:
Non-residential properties and second homes: the general rate will remain at 10.4%. For properties that are not used as a primary residence, this rate will decrease to 8% from 1 January 2026.
- For commercial properties and other objects, the rate will remain at 10.4%.
- Primary residence: anyone who buys a property to live in themselves pays 2% transfer tax. This percentage will not change in 2026.
- Indirect property transactions: for transfers via shares in a property company, a rate of 4% applies, which will also remain unchanged.
Strict conditions apply to the use of the starter exemption. The scheme is intended for buyers between the ages of 18 and 35 who have not previously made use of this exemption. In addition, the value of the property is decisive:
- In 2025, a limit of € 525.000,- will apply.
- From 1 January 2026, this limit will be increased to € 555.000,-.
If the purchase price exceeds this amount, the exemption will lapse completely and the buyer will pay the usual rate of 2%.
Opportunities and limitations
The increase in the limit in 2026 gives first-time buyers slightly more room in an overheated housing market. Nevertheless, the scheme remains limited: in popular cities, prices are often well above the new limit. Moreover, the exemption can only be applied once in a lifetime. It is likely that the first-time buyer exemption will remain a controversial topic in the coming years. Proponents emphasise that the scheme helps young buyers take their first step into the housing market, while critics fear that its effect on affordability and accessibility will be limited.
