The government has noted that it is possible to transfer new immovable property via a share transaction without any VAT or transfer tax becoming payable. It plans to prevent this by making changes to the concurrence exemption (‘samenloopvrijstelling’). As a result, with effect from 1 January 2025, in certain situations the acquisition of shares in real estate companies owning ‘new’ immovable property will no longer fall under the concurrence exemption. Such transactions will be subject to transfer tax at a rate of 4%.

No changes are being made to the reduced rate of 2% and the first-time buyers’ rate. Transitional arrangements have been included. Under these arrangements the existing rules will be respected for projects that are ongoing at the time the legislative proposal is submitted (3.15 p.m. on 19 September 2023) and for declarations of intent that have been signed at that time for projects yet to be implemented and for which acquisition will be completed by 31 December 2029.