With Budget Day now behind us, the outlines of the Dutch Tax Plan 2027 have become clear. For the Dutch real estate sector, the announced measures are relatively modest. While the proposals address structural imbalances in the housing market, they once again fall short of offering a broader vision for the challenges the Dutch real estate market faces. Meaningful reforms and measures that would strengthen the investment climate remain absent.

A selective reduction in transfer tax

The standard residential transfer tax rate will be reduced from 8% to 7% from 2027. This follows an earlier reduction from 10.4% to 8%, which took effect in 2026. The rate applies to residential properties that are not acquired as a primary residence, including rental housing, second homes and holiday homes. This is a step in the right direction. The government is effectively acknowledging that the tax burden on residential property investors had become too high.

However, we expect the impact to be limited. A one-percentage-point reduction lowers transaction costs, but it is unlikely to be a decisive factor for investors considering Dutch residential real estate. Those decisions are driven primarily by financing conditions, rental regulation and the long-term predictability of the tax regime.

Importantly, the reduction only applies to residential properties. For commercial real estate, including offices, logistics assets, industrial property and retail, the transfer tax rate remains 10.4%. For many international investors, this elevated rate is difficult to justify and only adds to the perception that Dutch legislation and regulation have become increasingly unpredictable.

From a European perspective, the Netherlands is one of the few countries with such a high transfer tax burden on commercial real estate, particularly when compared with neighbouring markets such as Germany (6.5%), the United Kingdom (5%) and France (5.81%).*

^{Source: Savills Data, Intelligence & Strategy (2026)}

^{* This graph shows maximum transfer tax rates on commercial real estate. The rates are not directly comparable: the Netherlands applies a flat rate, while Germany and the United Kingdom operate on progressive systems (the highest marginal rate is shown). France uses a regional base rate; the standard national rate has been applied here.}

Other notable measures

Beyond transfer tax, the Dutch Tax Plan includes several other measures relevant to the real estate sector. A transfer tax exemption will be introduced for transactions between housing associations. This could simplify portfolio optimisation and accelerate restructuring within the social housing sector.

The Energy Investment Allowance (EIA) will also increase from 40% to 45.5% from 2027. This strengthens the business case for improving sustainability standards in offices, industrial and logistics buildings, and retail properties. Given the increasing renovation requirements arising from upcoming EPBD regulations, this is a welcome development.

Equally important is what is missing. No new property taxes have been announced, the tax regime for real estate funds remains unchanged, and there are no further adjustments to rental regulation. Meanwhile, the long-awaited reform of Box 3 taxation, moving towards taxation based on actual returns, has been postponed once again, with implementation now expected no earlier than 2028.

For institutional investors, the direct impact of this delay is limited. Nevertheless, it is indicative of the government's broader approach to taxing wealth and risks placing additional pressure on the investment climate.

No capital without confidence

The weeks leading up to Budget Day were dominated by the minority government's struggle to reach an agreement. With support required from parties across the political spectrum, issues such as welfare spending and the taxation of private wealth under Box 3 became increasingly politicised. Even though the proposals are now on paper, each measure must still secure parliamentary approval in both chambers.

The process confirms that the political volatility that characterised the period leading up to the fall of the Schoof I government has not yet subsided. For the Dutch real estate sector, this means a clear long-term vision for the challenges the Netherlands is facing is still lacking. Despite a cautiously improving market sentiment, investing in Dutch real estate remains significantly less attractive for many investors than it was a decade ago.

At the same time, these investors are needed more than ever. Government financing costs continue to rise. While the yield on a ten-year Dutch government bond was still negative (-0.08%) in September 2021, it now stands at around 3.5%. Private capital is essential if the Netherlands is to remain competitive, yet investor confidence is only slowly returning.

For that reason, it is important that the path now set by the Jetten government is continued. Reaching a budget agreement despite competing political interests is an achievement in itself.