First-time buyers get good news for the housing market!
From 2024, the limit for the starter exemption in the transfer tax will be increased to €510,000. First-time buyers can take advantage of a new tax exemption. We explain in this article what the change means for you and what the impact can be.
The starter exemption for the transfer tax is a measure intended to help first-time buyers purchase their first home. From 2024, the home value limit will change to € 510,000, where it was € 440,000 in 2023. This will therefore be a measure for the starter where you do not have to pay transfer tax below this amount. Transfer tax applies to the purchase of existing houses. As a non-starter, this will be 2% of the purchase price and for investors 10.4%. Starters will therefore not pay transfer tax provided they meet all the conditions. This can significantly reduce the cost of your first home. If you buy a house of € 500,000 as a starter, this saves € 10,000 in extra costs. The date of the transfer is leading. So are you already buying a house right now, but will you be the owner in the following year? Then the conditions of 2024 apply.
It is important to mention that there are some conditions attached to the starter exemption. For example, the buyer must be between 18 and 35 years old during the acquisition of the property and the buyer must therefore use this as his main residence. Also, the exemption is only for buyers who have not used it before. Furthermore, a declaration must be completed from the tax authorities in order to claim the exemption. The notary has a controlling role in this and adds the signed declaration(s) to the deed of delivery. As a final condition, the validated valuation report containing the appraised value may not exceed the home value limit. If this is the case, you simply pay transfer tax on the full purchase price.
Source: Belastingdienst
