The selling of properties in The Netherlands has been charged with real estate transfer taxes. In general this is 6% of the transaction. Exceptions are houses (2%) and agricultural land (no taxes, under the condition that the land is in use for at least 10 years).
With the delivery of a building site with VAT the buyer can apply for an exemption decision for the real estate transfer tax. Strict requirements are then applicable (undeveloped land, environmental licenses granted etc.) for the building site. With the verdict of the High Council ECLI:NL:HR:2013:CA2222 and with reference to European jurisdiction, a wider definition of a building site has been listed.
This wider definition, in which the intention of all parties involved is playing an important role, will also be applicable for the Sales Tax Act, according to the Netherlands Budget Memorandum presented by the King on ‘Prinsjesdag’. It is now possible for VAT-entrepreneurs to apply for this exemption decision for the real estate transfer tax. For example, the restriction undeveloped land can also be land on which still property is built, but the seller is obliged to demolish the property on delivery of the land.
However this regulation will be simplified, it is still necessary to plan the buying/selling procedure in an orderly way in order to avoid VAT disadvantages. In this case the AAB advisors can be of assistance to you.