The housing market has often taken centre stage in recent years. Especially for first-time buyers, finding an affordable home seemed to become increasingly challenging. However, good news is on the horizon: from 2024, the transfer tax for first-time buyers will be exempted up to a higher purchase price. This measure aims to support young homebuyers in entering the property market. In this blog, you can read what changes regarding transfer tax will be implemented in 2024.
Transfer tax is a tax you pay when you buy a house from someone else. So this tax is not paid in the case of a newly built house. The transfer tax differs based on the function of the property. This is because the tax of a shop building, office, factory or of a house that is rented out is a lot higher than the transfer tax of a house that the buyers themselves will live in for a long time. This is because the government wants to improve the position of first-time buyers and those moving on versus investors in the owner-occupied housing market. Currently, the transfer tax for a retail property, office, factory and of a property that is going to be rented out is 8%, while this tax for buyers who are going to live in their own property long-term is only 2%.
As the government wants to encourage first-time buyers to buy a home, they get an exemption from transfer tax. For this, however, you have to meet some requirements. For instance, you must be between 18 and 35 years old at the time of the transfer and it must be the first house you buy. In addition, you must live in the house yourself for a longer period of time and the purchase price must not exceed €440,000.
From 2024, a number of aspects regarding transfer tax will change. For instance, the transfer tax for a retail property, office, factory and for a house to be rented out goes from 8% to 10.4%. This change will give first-time buyers and move-up buyers a better position in the housing market vis-Ã -vis investors.
In addition, the exemption for first-time buyers will also change from 1 January 2024. Currently, the purchase price of a home cannot exceed €440,000 if they want to qualify for this exemption. From 2024, this amount will be increased to €510,000. It is important that this amount moves with the changes in the housing market. This will give more first-time buyers the chance to make use of the exemption for their first home.
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