Friday, 18 September 2026
The Dutch government has proposed a series of tax changes aimed at improving investment conditions in the housing market, including a reduction in the transaction tax applying to residential properties purchased by investors and additional financial support for housing corporations.
The measures form part of the 2027 Tax Plan submitted to the House of Representatives on 15 September. They remain subject to parliamentary approval and could be amended before taking effect. Most measures in the package are intended to apply from 1 January 2027.
For residential property investors, the most direct change is a proposed reduction in real estate transfer tax from 8% to 7% for homes that will not be occupied by their purchaser. The measure covers properties acquired for rental purposes as well as other residential purchases where the buyer does not establish their own residence. The existing 2% rate for qualifying owner-occupiers is unaffected.
Reducing the rate by one percentage point lowers the upfront cost of acquiring rental housing and also reduces the tax burden when investment properties are transferred between landlords. The government has linked the measure to its efforts to create more favourable conditions for private investment in the rental sector.
The change comes as the Netherlands continues to face a significant shortage of housing and the government seeks to increase both private and public-sector development capacity. Alongside the tax proposals, approximately €7 billion has been allocated to housing measures through 2035, including €2.3 billion for incentives connected with affordable housing construction. Municipalities are expected to receive €7,000 for each qualifying affordable home delivered under this programme.
A further €940 million has been allocated for major housing development locations, while €650 million is intended to support projects that otherwise face difficulties reaching financial viability. Another €180 million is being made available to help municipalities acquire land earlier in the development process.
Private rental development is also expected to receive €500 million through support directed at middle-income rental housing. Combined with the lower transfer tax, the measures are intended to improve the economics of projects and acquisitions at a time when financing costs, construction expenses and regulation continue to influence residential investment decisions.
Housing corporations are another major focus of the tax package. From 2027, qualifying transfers of social housing between housing corporations would become exempt from transfer tax. The change is designed to make it easier for organisations to redistribute housing portfolios without generating an additional transaction-tax cost.
A potentially larger financial change is planned from 2028. The government proposes removing the general restriction on interest deductions for housing corporations. The measure is intended to increase the amount of capital available for new social housing and improvements to existing properties. Together with other housing measures, the government estimates that its programme could provide corporations with around €28 billion of additional investment capacity.
The 2027 package also proposes increasing the deduction available for qualifying energy investments from 40% to 45.5% from next year, providing another potential incentive for businesses undertaking eligible energy-related expenditure.
Taken together, the proposals show the government using taxation alongside direct public funding to address constraints on Dutch housing delivery. Private investors would face a lower acquisition cost for rental homes, while housing corporations would receive tax changes intended to strengthen their capacity to build, acquire and renovate residential stock.
The measures are not yet final. The 2027 Tax Plan and related legislation must pass through the Dutch Parliament, and individual provisions could still be amended before taking effect.
Source: CMS
