DUTCH REAL ESTATE TAXATION 1. Acquisition of the

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DUTCH REAL ESTATE TAXATION 1. Acquisition of the real estate investment Acquisition Subject to VAT The supply of Dutch real estate is VAT-­‐exempt, except in 3 cases: -­‐supply of a “building land”; -­‐supply of newly constructed buildings no later than two years after first occupation; -­‐other supplies where seller and purchaser have opted for taxation. The VAT paid upon acquisition is recoverable in as far as the property is used for activities subject to VAT. The VAT standard rate is 21%. Transfer tax and others acquisition costs A transfer tax of 6% is due on the acquisition of legal or beneficial ownership of Dutch real estate or “fictitious” real estate. A for houses, or shares representing houses, a 2% rate applies. An exemption from transfer tax applies to the supply of building land and newly constructed buildings until two years after the first use as a business asset. Acquisition of shares in a real estate company is subject to transfer tax when a substantial interest is acquired or expanded. 2. Holding the real estate investment Rental activity The rental income is subject to CIT at the standard rate (25%) on a net basis. The real estate may be depreciated only down to its “base value” (the “WOZ value, a valuation which is made annually by the municipality, and which is based on the value of the property). The lease of a Dutch real estate is VAT-­‐exempt, except in these situations: -­‐lease of real estate property with respect to recreation (hotel businesses, etc...); -­‐lease of parking spaces or storage places for boats; -­‐lease of safe deposit boxes; -­‐lease of business premises for which the lessor & the lessee have opted for VAT taxation. Autorisation d’établissement du Ministère des Finances luxembourgeois n° 26/12 en tant que Professionnel du
Secteur Financier agréé par la Commission de Surveillance du Secteur Financier luxembourgeoise.
N° R.C.S. Luxembourg B 94364
TVA LU 19788437
ING Luxembourg S.A.
IBAN LU72 0141 3413 6050 0000
BIC CODE : CELLLULL
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18 rue Robert Stümper • L-­‐2557 Luxembourg T +352 26 38 92 40 • F +352 26 38 92 41
www.finimmo.com
3. Selling the real estate investment Sale of a real estate property Selling costs are deductible for Dutch CIT purposes. Capital gains are subject to CIT if the real estate is located in the Netherlands. If it is located abroad, tax treaty provisions will most likely allocate the right to levy taxes on these capital gains to the country of source. If so, capital gains will be exempt in the Netherlands. If a non-­‐resident company is incorporated under Dutch law and not protected by a tax treaty, capital gains will be taxed similarly to Dutch resident companies. Sale of a real estate oriented company Selling costs are deductible from the capital gains realized on the disposal of the shares unless the participation exemption applies. Capital gains are subject to CIT unless the Dutch participation exemption applies. Sale by a corporate non-­‐resident is not subject to tax in Netherlands with the exception of certain structures considered as abuse of law. The present document only has an informative purpose, and constitutes neither a tax advice, nor any part of a contract or an offer. Autorisation d’établissement du Ministère des Finances luxembourgeois n° 26/12 en tant que Professionnel du
Secteur Financier agréé par la Commission de Surveillance du Secteur Financier luxembourgeoise.
N° R.C.S. Luxembourg B 94364
TVA LU 19788437
ING Luxembourg S.A.
IBAN LU72 0141 3413 6050 0000
BIC CODE : CELLLULL
2/2