Reduced RETT Rate (8%) for investments in residential real estate

The general RETT rate amounts to 10.4%. As of 2026, a reduced RETT rate (8%) will apply to the acquisition of residential properties, irrespective of whether they are acquired for personal occupation, rental purposes, or as a second or holiday home.

The definition of a ‘residential property’ remains unchanged and continues to align with the existing rules under the Real Estate Transfer Tax Act: immovable property which, at the time of legal transfer, is by its nature intended for residential use. In case the nature of the property is ambiguous, other guidance is available to determine applicability of the correct RETT rate.  

Second homes and holiday residences qualify as residences, provided they are inherently intended for residential occupation.

Non-residential buildings, such as hotels and commercial premises, remain subject to the general RETT rate of 10.4%.

Key takeaway

Determining whether a property qualifies as ‘residential’ remains a nuanced assessment, particularly at the boundary between commercial and residential use or between care and residential use. Advice may be recommended.

Reference

Tweede Kamer der Staten-Generaal