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.