Home buyers in the Netherlands benefit from investors

The Dutch government is interested in residential real estate being purchased for living in it, and not as an investment. For this reason, from 2021, an increased property transfer tax is applied to investors. Investors have to pay 8% of the purchase price, while those under the age of 35 who purchase a first home pay 0% tax if the value of the purchased property does not exceed 400 euros. If the object is more expensive, the tax is 000% of its value. The measures taken have already begun to bear fruit.

What changes have taken place in the real estate market?

Land registry data shows that between 2010 and 2020, investment home purchases doubled, reaching around 88 such transactions per year. Since the introduction of an increased tax for investors in 000, there have been about 2021 such transactions, while 51 residential properties were purchased by first-time buyers.

It is expected that the number of purchases of residential real estate by investors will remain low for now. As an additional measure to reduce competition between home buyers and investors, decisions of local municipalities on the possibility of acquiring residential real estate on their territory only by those buyers who plan to live in it can be used.