The proposal concerns the cancellation of the real estate transfer tax (RETT) exemption for the acquisition of shares in a company owning newly built real estate. Such transactions have become more common in the past years. Cancellation of this RETT exemption will significantly impact all transactions with newly built real estate in the form of share deals, especially investments in newly built residential real estate by (institutional) investors.

The proposal is intended to enter into force as from 1 January 2024 and does not contain transitional rules for pending transactions. Interested parties can provide a response in the public consultation until 27 March 2023. If this proposal is enacted, it would be a new setback for the Dutch residential market and the attempt to alleviate the housing shortage.

A link to the official Dutch consultation documents can be found here.

An unofficial translation of the consultation document can be found under the download button below.