Home buyers between the ages of 18 and 35 will not pay transfer tax in 2024 for a home of up to €510,000. The buyers must meet conditions. For example, they must promise to a notary that they will live in the home themselves. The house may therefore not be rented out.
Conditions for the transfer tax exemption
The buyer must meet the following conditions to make use of the transfer tax exemption (starter exemption):
The buyer is of legal age (18) and under 35 years of age at the time of acquisition. The moment of acquisition is the moment of signing the notarial deed of delivery.
The buyer buys a home.
The buyer has not previously received the transfer tax exemption and declares this in writing.
The buyer will live in the home himself (the so-called main residence criterion). To this end, the buyer completes the Transfer Tax Declaration for Start-up Exemption.
The value of the home will not exceed €510,000 in 2024.
If a buyer is going to live in the home himself, but does not meet the other criteria for the starter exemption, the buyer pays 2% transfer tax. Because this is a lower rate than the standard 10.4% rate, a statement must also be submitted to the notary.
1 of buyers 35 years or older: no exemption on their own share
The exemption applies to each buyer separately. Is 1 of the buyers 35 years or older and the other younger than 35? Then a person aged 35 or older pays 2% tax on their own share. The person who is younger than 35 years old does not pay tax on his own share (if this person also meets the other conditions).
The home does not have to be the first owner-occupied home for exemption
For the exemption it does not matter whether the buyer has previously owned a home. The home does not therefore have to be the buyer's first home for the exemption. However, you may only use the exemption once.
Buyer needs explanation for exemption
The buyer needs a Transfer Tax Exemption Declaration for starters to make use of the transfer tax exemption. In this letter, the buyer declares that he meets the conditions for the exemption. You can download and complete the declaration on the Tax Authorities' website.
10.4% transfer tax if home is not your main residence
Since January 1, 2023, buyers have been paying 10.4% transfer tax if they do not live in the home themselves. For example, if they own the house:
rent out;
use as a holiday home;
buy for a child.
Anyone who wants to make use of the exemption must use the new home as their main residence. This means that the buyer registers with the municipality and also builds his life there (such as sports activities, school, place of worship, childcare, friends, family). This can only be 1 home. For this reason, second homes and holiday homes, even if they are not rented, also fall under the 10.4% rate.
Read more about the exemption scheme on the Tax Authorities website:
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