Exemption of Dutch real estate transfer tax

One of our clients is about to sell its shares in a Dutch company to a foreign company. The foreign buyer however, is, not interested in taking over the ownership of the factory building owned by the Dutch company. We are assisting client with separating the factory from the Dutch company first prior to the sale of the shares.

Although a transfer of a Dutch factory building triggers 6% Dutch real estate transfer tax, we believe that an exemption can apply in the case at hand. To be 100% certain we asked the Dutch tax authorities to confirm our view. Given the market value of the building, client could save himself a substantial amount of tax. Hopefully, the tax inspectors respond soon.