Property Guide – The Netherlands
July 2024
This is a general guide only and not designed to cover every scenario and the nuances of property VAT (“BTW” in Dutch). Specific advice according to each transaction or supply should always be sought from a VAT specialist. In this guide we assume that the transactions are provided by a VAT-registered entrepreneur acting as such.
Be aware that transactions may also be subject to Real Estate Transfer Tax (“overdrachtsbelasting” in Dutch).
| Supply | Commercial/Non-residential | Residential |
|---|---|---|
| Freehold Sale (sale of legal title) | Building sites are S/R. S/R if property 24 months old or less, counting after first usage. EX in other cases but can Opt to Tax making S/R (conditions a.o. that the buyer will mainly (90%, in some cases 70%) use the property for VAT-taxable purposes – reverse charge applies in that case). Bare land that is not a building site EX. Reverse charge also applies in case of a foreclosure sale. | Only S/R if property 24 months old or less, counting after first usage. Otherwise, EX. |
| Rent | Commercial/Non-residential | Residential |
| Leases | EX but but can Opt to Tax making S/R (conditions a.o. that the tenante will mainly (90%, in some cases 70%) use the property for VAT-taxable purposes). Rental of tourist accommodations is R/R. | EX. |
| Transfer/Sale of Property Including Tenants and Where Leases Continued by Buyer | See “Supply”. However, under circumstances categorizes as “transfer of business” which makes the transaction out of scope for VAT purposes (following Article 19 VAT Directive). | See “Supply”. However, under circumstances categorizes as “transfer of business” which makes the transaction out of scope for VAT purposes (following Article 19 VAT Directive). |
| Construction Services | S/R. Subcontractors need to consider the Netherlands’ domestic reverse charge rules where main contractor self-charges VAT. | R/R may apply for certain reparations and maintenance. Otherwise S/R. Delivery and installation of solar panels on residential properties are Z/R. |
| Conversion Services | S/R if “in essence new construction of real estate”. “In essence” is not specified in VAT Law but follows case law. | S/R if “in essence new construction”. “In essence” is not specified in VAT Law but follows case law. |
| Overseas Suppliers | If related to Dutch property: subject to Reverse Charge if supplied to a Dutch-established VAT registered customer. If not, overseas supplier may have to register for VAT or OSS (S/R). There isn`t a registration threshold for non-Netherlands established businesses. | If related to Dutch property: subject to Reverse Charge if supplied to a Dutch -established VAT registered customer. If not, overseas supplier may have to register for VAT or OSS (S/R). There isn`t a registration threshold for non-Netherlands established businesses. |
Taxable with right to recover related VAT on expenditure
Standard Rate (“S/R”) 21%
Reduced Rate (“R/R”) 9%
Zero-rate (“Z/R”) 0%
Exemption with no right to recover VAT on expenditure
Exempt (“EX”) N/A
VAT Adjustment Scheme (“herzieningsregeling”)
In the Netherlands, businesses can recover input VAT on goods and services used for taxable purposes. The “herzieningsregeling” requires periodic adjustments if the initial use of goods changes within a specified period after acquisition (for immovable property, 9 calendar years after the year of first usage), ensuring VAT deductions reflect actual taxable use.
