Updated on 18 October 2026
Key takeaway: Dutch real estate tax for foreign investors comes in three layers: transfer tax when you buy (8% for residential investment property and 10.4% for commercial property in 2026), annual municipal taxes based on the WOZ value, and income tax on the property. Foreign individuals usually pay Box 3 tax at 36% on a deemed return, while foreign companies pay corporate income tax at 19% and 25.8%.
Dutch real estate tax depends on two questions: how you use the property, and whether you own it personally or through a company. A foreign investor who buys a rental apartment in Amsterdam pays different taxes than a foreign company that owns a logistics hall near Rotterdam, even though both are non-residents.
This guide explains the transfer tax rates for 2026, the annual municipal taxes, how foreign individuals and foreign companies are taxed on Dutch property, where VAT comes in, and what to consider before you sign at the notary.
How is Dutch real estate taxed for foreign investors?
Foreign investors in Dutch real estate face transfer tax at purchase, annual municipal taxes, and either Box 3 income tax (individuals) or corporate income tax (companies). VAT can apply to new buildings and commercial leases.
Nationality and residence do not change the transfer tax or the municipal taxes. They do change how the income from the property is taxed. In short, there are four taxes to plan for:
- Transfer tax (overdrachtsbelasting): a one-off tax on the purchase price when ownership is transferred.
- Municipal taxes: an annual property tax (OZB) and local charges, based on the official WOZ value.
- Income tax: Box 3 for most private investors, or corporate income tax for companies.
- VAT (BTW): on new buildings and, by choice, on commercial rent to business tenants.
What is the Dutch real estate transfer tax in 2026?
In 2026 the Dutch transfer tax is 2% for a home you live in yourself, 8% for residential property you do not live in, such as buy-to-let, and 10.4% for offices, shops and other non-residential property.
The transfer tax is paid once, through the civil-law notary, when the deed of transfer is signed. According to the transfer tax rates of the Belastingdienst, the rate for residential property that is not your main residence dropped from 10.4% in 2025 to 8% in 2026. That makes Dutch buy-to-let noticeably cheaper to enter than a year ago.
Dutch real estate transfer tax rates in 2026
Percentage of the purchase price, paid once when the property is transferred at the notary.
Source: Belastingdienst, transfer tax rates 2026. The 0% exemption only applies to buyers aged 18 to 35 who will live in the home, up to a home value of € 555,000.
For investors the 0% and 2% rates are usually not available, because they require the buyer to live in the home. Newly built property is a special case: a supply within two years after first use is subject to 21% VAT, and in that case there is usually no transfer tax on top.
What does transfer tax cost on an investment purchase?
One-off transfer tax on three example purchases in 2026.
Illustrative calculation. Notary, valuation and financing costs come on top.
Which annual property taxes do owners pay in the Netherlands?
Owners pay an annual municipal property tax (OZB) based on the WOZ value, plus local charges such as sewerage. For non-residential property, the user pays a separate OZB as well.
Every year the municipality sets the WOZ value of each property, an official estimate of its market value. The WOZ value is the basis for the annual property tax, the onroerendezaakbelasting (OZB). The rate differs per municipality, so the same property costs more in one city than in another.
- Residential property: the owner pays OZB.
- Non-residential property: the owner pays OZB, and the user of the property pays a separate user’s OZB.
- Other levies: sewerage charges and water authority taxes usually come on the same bill.
The WOZ value matters beyond the municipal bill. It is also the starting point for the Box 3 value of a property and for the depreciation limit for companies.
How are foreign individuals taxed on Dutch property?
A foreign individual who owns Dutch investment property is usually taxed in Box 3: a deemed return of 6.00% on the property value in 2026, taxed at 36%. Actual rental income is not taxed separately.
If you live abroad and own a Dutch rental property as a private investment, you are a non-resident taxpayer for that property. The Netherlands taxes it in Box 3, the box for savings and investments. Box 3 does not tax your actual rent. Instead, it assumes a fixed return on the value of the property.
- Deemed return 2026: 6.00% on “other assets”, which includes real estate.
- Tax rate 2026: 36% on that deemed return.
- Value: the property counts at its WOZ value, with a reduction for rented homes under rent protection.
- Actual return lower? Under the counter-evidence rule you can show that your real return was lower and pay tax on that instead.
Example: if your property counts for € 400,000 in Box 3 and you have no debts, the deemed return is € 24,000. At 36% that is € 8,640 in tax, before any allowance. In practice debts, the tax-free allowance and the counter-evidence rule all affect the outcome. Our guide to the Box 3 reform for investors explains the details and what changes towards 2028.
If your property activities are so extensive that they qualify as a business, the income moves to Box 1 with progressive rates of up to 49.5%. Your home country may also tax the property, but tax treaties normally give the Netherlands the first right to tax real estate located here and require your home country to give relief.
How are foreign companies taxed on Dutch real estate?
A foreign company that owns Dutch real estate pays Dutch corporate income tax on the rental profit and on capital gains: 19% on the first € 200,000 and 25.8% above that in 2026.
For a foreign company, Dutch real estate is treated as a Dutch business. The company files a Dutch corporate income tax return as a non-resident taxpayer and is taxed on the actual result: rent minus costs, interest and depreciation, plus any gain on sale. The rates are summarised in the PwC overview of Dutch corporate taxes.
- Rates 2026: 19% on taxable profit up to € 200,000 and 25.8% on the excess.
- Depreciation: buildings can only be depreciated down to their WOZ value. Land is never depreciated.
- Interest: net interest is deductible up to the higher of € 1 million or 24.5% of the tax EBITDA (the earnings stripping rule).
- Losses: can be carried back one year and carried forward without a time limit, with limits on large amounts.
Many investors hold Dutch property through a Dutch BV instead. The BV is then a resident taxpayer, and dividends to a foreign parent can be subject to 15% Dutch dividend withholding tax, unless an exemption or treaty reduction applies. Our article on Dutch corporate tax covers the general rules.
| Foreign individual | Foreign company | |
|---|---|---|
| Tax | Box 3 income tax | Corporate income tax |
| Rate 2026 | 36% on a deemed return of 6.00% | 19% up to € 200,000, then 25.8% |
| What is taxed | Deemed return on the property value | Actual rental profit and capital gains |
| Mortgage interest | Through the debt position in Box 3 | Deductible, within earnings stripping limits |
| Depreciation | Not applicable | Down to the WOZ value |
| Filing | Annual Dutch income tax return | Annual Dutch corporate income tax return |
Is there VAT on Dutch real estate?
Yes, in two situations: new buildings are sold with 21% VAT, and owners can opt for VAT on commercial rent to business tenants who use the property for at least 90% VAT-taxable activities.
Renting out property is normally exempt from VAT. That means you cannot reclaim VAT on purchase or renovation costs. For commercial property, owner and tenant can opt for VAT-taxed rent if the tenant uses the property for at least 90% VAT-taxable activities. The owner can then reclaim VAT on the purchase and costs, but must monitor that deduction for ten years under the Dutch revision rules.
Since 2026, renovations and major maintenance of € 30,000 or more are also monitored, for five years. A foreign owner who opts for taxed rent needs a Dutch VAT registration and quarterly returns. Read more in our guide to VAT in the Netherlands.
“Foreign investors tend to focus on the purchase price and the transfer tax, and only discover the annual compliance later: a Dutch tax return, VAT filings and municipal assessments, all in Dutch. Setting up the structure and the administration before the deed is signed saves a lot of correction work afterwards.”
Should you hold Dutch property personally or through a company?
It depends on the size of the portfolio, the financing, your home country and your plans to sell. There is no single best structure, so compare the options before you buy.
Changing the structure after the purchase usually triggers transfer tax again. That is why the choice should be made before signing. These factors usually decide it:
- Size and number of properties: Box 3 taxes a deemed return regardless of your actual result, while a company is taxed on real profit.
- Financing: in a company, interest reduces taxable profit within the earnings stripping limits.
- Your home country: how it taxes foreign property, foreign companies and dividends, and which treaty applies.
- Exit plans: a sale of shares and a sale of the property itself are taxed differently.
- Fund structures: since 2025 a Dutch fiscal investment institution (FBI) may no longer invest directly in Dutch real estate.
For holding structures, see our article on the Dutch BV holding structure.
Buying Dutch property from abroad?
We compare holding it personally or through a company, based on your home country and your plans, before you sign.
Book a free consultation →How Oakhill helps foreign real estate investors
Oakhill Financial Services is based in Amstelveen and works for foreign investors with property in the Netherlands, in English. We keep the administration per property, file the Dutch corporate income tax and VAT returns, prepare the annual accounts and report to owners and banks. See our real estate accounting services in the Netherlands.
For Dutch tax registrations, fiscal representation and corporate income tax, we work through our international tax services, so you have one point of contact for your Dutch property.
Frequently asked questions about Dutch real estate tax
What is the transfer tax for foreign buyers of Dutch property in 2026?
The same as for Dutch buyers: 8% for residential property you do not live in, 10.4% for non-residential property, and 2% only if you live in the home yourself. Nationality and residence do not change the rate.
Do non-residents pay Dutch tax on rental income?
Yes, but not always on the actual rent. Foreign individuals are usually taxed in Box 3 on a deemed return. Foreign companies pay corporate income tax on the actual rental profit.
Is my Dutch property also taxed in my home country?
Possibly. Tax treaties usually give the Netherlands the first right to tax Dutch real estate, and require your home country to give relief for the Dutch tax. Check the treaty between the Netherlands and your country.
What is the WOZ value?
The WOZ value is the official value the municipality sets each year for every property. It is used for the municipal property tax, for the Box 3 value and for the depreciation limit for companies.
Can a foreign company deduct mortgage interest on Dutch property?
Yes. Net interest is deductible up to the higher of € 1 million or 24.5% of the tax EBITDA. Interest above that limit can be carried forward.
Do I need to file a Dutch tax return as a foreign property owner?
Yes. Foreign individuals file a Dutch income tax return as non-resident taxpayers, and foreign companies file a Dutch corporate income tax return. If you opt for VAT-taxed rent, you also file Dutch VAT returns.
Is there capital gains tax on Dutch property?
There is no separate capital gains tax. Individuals in Box 3 are taxed on a deemed return instead. For companies, a gain on sale is part of the taxable profit for corporate income tax.
Do I pay VAT when buying a new property in the Netherlands?
Usually yes. The supply of a new building, within two years after first use, is subject to 21% VAT. In that case there is usually no transfer tax on top.
Investing in Dutch real estate from abroad?
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This article is general information, not tax or legal advice. Rates and rules can change. Check your own situation with Oakhill Financial Services or the Belastingdienst.