Every year on Prince’s Day key legal changes are announced.
For the housing market, there are a number of changes that will take effect in 2023. The most important are:
For home buyer
A buyer who moves into the property himself pays only 2% transfer tax. Starters in the housing market are entitled to a starter exemption. For them, the transfer tax is even 0%. A starter is a buyer, younger than 35 years old, who has never bought a home of their own before. In 2022, the starter exemption applies to homes worth up to €400,000. In 2023, this limit will be widened and the starter exemption will apply to homes worth up to €440,000.
For investors
In recent years, homes have increasingly been sold to investors rather than buyers who want to live in the property themselves. To accommodate the home buyers, the government wants to increase the transfer tax rate for investors. If an investor buys a property that will be rent out, he/she will owe 10.4% transfer tax from 2023.
Currently, the rate is 8%. So for a €400,000 property, the investor will pay €41,600 in transfer tax in 2023. This year, it is still €32,000..
Besides legal changes, changes take place every year regarding mortgage lending standards.
If you are planning to buy a property in the near future, it is wise to contact us. We can then figure out for you whether the 2023 rules work in your advantage or whether it is wise to fall under the current 2022 conditions.
Team Expats Amsterdam