2021 tax plan impacts real estate transactions

The potential tax measures that recently appeared in the Dutch press have a material impact on Dutch real estate transactions:
– The RETT rate for residential investment property and non-residential property may increase from 2%/6% to 8% as of 1 January 2021. This puts pressure to close Dutch real estate deals before the end of 2020.
– Keeping the CIT rate at 25% instead of 21.7% would impact the valuation of deferred tax assets and liabilities in share deals.
– The possible tightening of interest deduction limitations will impact the effective CIT rate for Dutch real estate investments.

The 2021 Tax Plan will be published on 15 September 2020.


Gerard van der Linden

Christiaan Oudemans

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