Tax Plan 2027: 5 things to know for the Dutch real estate sector

The government proposes to cut the transfer tax rate on non-primary residences (such as buy-to-let homes acquired by investors) from 8% to 7%, effective 1 January 2027. The aim is to improve the investment climate in the rental market and stimulate the supply of rental housing, including new construction.

The reduced 2% rate for primary residences and the starter’s exemption remain unchanged, as does the general 10.4% rate for commercial properties. The measure is expected to result in a budgetary loss of €226 million in 2026 (due to an anticipation effect), a revenue gain of €118 million in 2027, and a structural loss of €75 million from 2028 onwards.

In practice, the 1 percentage point reduction can make a meaningful difference: for an investor acquiring a €10 million buy-to-let portfolio, the saving would amount to €100,000 in transfer tax.

The government proposes to exempt property transfers between Dutch social housing corporations (woningcorporaties) from transfer tax, provided the properties are used for services of general economic interest, such as social rental housing, student housing and residential care facilities. This new exemption replaces reliance on the existing, narrower "task transfer" exemption for ANBI’s, which in practice often did not apply to straightforward property transfers between corporations. The exemption is estimated to result in a structural budgetary cost of €2 million per year from 2027.

The government has announced it is working on an exception for housing corporations from the earnings-stripping measure, to be introduced through an amending memorandum (nota van wijziging) to the Tax Plan 2027, in response to a projected shortfall in investment capacity for housing corporations through 2034 under the National Performance Agreements. The aim is to strengthen housing corporations' financial capacity, including by creating more room within their financing guarantees, to support new housing development projects. This measure is not yet part of the bill itself and its precise design is still to follow.

Of the €1 billion per year reserved under the coalition agreement (2029-2035), €100 million per year for 2029-2033 is earmarked for object subsidies supporting the construction of mid-market rental housing. At €10,000 per unit and €500 million in total, this points to roughly 50,000 new homes over five years. The subsidy aims to make the mid-market rental sector more attractive again for investors, who have faced lower achievable rents since regulation was introduced in 2023, combined with higher interest rates and tax burdens.

However, key details remain open: which properties will qualify, whether new-build, transformation and existing stock will all count, and how the scheme will be administered. These details are expected to follow Budget Day. Notably, the funding tranches run from 2029 rather than starting immediately, meaning investors and developers should not count on this scheme for current pipeline decisions.

The mid-market rental subsidy sits within a wider set of housing measures disclosed in the Budget Memorandum:

• €940 million for the development of large-scale housing construction areas (21 existing and 10 new locations).
• The National Fund for Affordable Owner-Occupied Housing, providing buyer support for affordable new-build homes.
• An extended Housing Construction Impulse (Woningbouwimpuls) to support complex projects requiring substantial public investment.