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24 June 2019 / news

2% real estate transfer tax on residential care apartments and thermal storage systems

A property that is intended for use as a nursing or care institution (such as a hospice) does not qualify as a residential property for the purposes of real estate transfer tax, so that the general real estate transfer tax rate (6%) will in principle apply.

Issue of law and interest

The Gelderland District Court had to decide how to deal with residential care apartments, whereby the focus is on permanent residence and care is an optional addition, often on an ‘as required’ basis. In addition, an answer was given to the question of whether the acquisition of a thermal storage system comes under the network exemption for real estate transfer tax purposes.

Judgment

The District Court ruled that the reduced real estate transfer tax for residential property applies to the acquisition of such residential care apartments, including the communal areas, since the properties are intended as residential property in their nature and on the basis of their objective characteristics. However, the working areas do not share the reduced rate. With regard to the thermal storage system, the District Court ruled that this does not come under the network exemption, because a thermal storage system is not designed to transport heat. As an appurtenance of the apartments, the thermal storage system does share the 2% rate.

Practical interest

The treatment of healthcare property continues to occupy tax minds. As this ruling shows, the purchase of healthcare property can take place at the reduced real estate transfer tax rate under certain conditions. If you have acquired care apartments in the recent past and paid 6% real estate transfer tax, it could be prudent to file an objection soon.

Contact

If you have any further questions on this issue or would like to receive more information, please contact Jérôme Germann, Jérôme Ariës or your trusted adviser at the Loyens & Loeff Real Estate Tax Team.​



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